The remarkable turnaround in aviation finance

Given the speed of its recovery, it can be easy to forget how the aviation sector was affected during the Covid-19 pandemic. In 2020 and 2021, global air passenger volumes plummeted 65.8% and 58.4% against 2019 levels, while airlines reporting combined losses of over $185bn in the 2020-2022 period. But, air travel numbers were back at pre-pandemic levels in 2023. In this Q&A, Muzinich & Co investors share their thoughts on a remarkable turnaround in the aviation sector and the implications for investors.