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'COVID-19 Blow to Aviation Sector Can be Greater than SARS'

Write: 2020-02-21 17:36:30Update: 2020-02-21 18:48:39

'COVID-19 Blow to Aviation Sector Can be Greater than SARS'

Photo : KBS News

The Korea Investors Service has warned that a protracted coronavirus outbreak will pressure liquidity management of the aviation sector.

In a report Friday, the credit ratings agency, which is an affiliate of Moody's Investors Service, said if a dent to airlines' cash flow continues for an extended period, it can have a negative impact on the credit rating of asset-backed securities issued by air carriers. 

It also noted how traveler numbers decreased and revenue of Korean Air and Asiana Airlines fell well over ten percent during the SARS outbreak in 2003.

The agency said it's difficult to rule out the possibility of the latest virus outbreak having larger repercussions.

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