Fitch Ratings reports that the decline in worldwide travel due to the pandemic has extended recovery trajectories for aircraft ABS asset values. The reduction in market values is tied to the surge in parked and out of service passenger aircrafts given the 90% drop in domestic and international air travel in 2020. These among others, were some of the main drivers of aircraft ABS rating downgrades over the past 13 months. Fitch Rating’s asset performance outlook is expected to remain negative until air travel increases, and the industry returns to sustainable cash flow levels.

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