With global air passenger traffic expected to reach 9.4bn passengers in 2024, exceeding 2019 levels by 2.5% and marking a positive post-pandemic recovery, the recovery period has not been so equal across airports. A DBRS Morningstar report looked at the London Southend Airport (Southend), which found that while it was smallest airport out of London's six, it had the highest annual passenger growth rate between 2017 and 2019. However, by the end of 2023, its passenger traffic was only about 7% of its 2019 levels.
""We believe Southend will continue to face challenges in rebuilding its airline network, which has been the underlying issue for the slow recovery,"" said DBRS Morningstar vice president, corporate ratings, asset performance Valiant Ip. ""However, a possible structural change in the aviation market in Europe may be the key to Southend's future if the current financial challenges at the airport are resolved.""
Given the prominence of leisure and visiting-friends-and-relatives travel, the report said, the business outlooks for smaller and underutilised airports may improve given the capacity constraint in the London area if they are able to overcome their financial challenges in the near term.
London Southend Airport post-pandemic turmoil, DBRS Morningstar report
