Brisbane Airport Corp. Pty Ltd.

International traffic, while supported by the establishment of the Trans-Tasman travel bubble in April 2021, will remain severely strained until at least fiscal 2023. This is attributable our expectation that Australia's international borders will remain closed until mid-calendar 2022. We therefore anticipate international passenger traffic to be about 20% and 70% of fiscal 2019 levels in fiscal 2022 and 2023, respectively. The negative outlook on the rating reflects the risk of slower recovery in traffic relative to our expectation over the next 12-24 months due to continuing risk from the COVID-19 pandemic. A protracted recovery, particularly of international traffic, will mean a delay in a rebound for operational cash flows and limit the prospects of the ratio of FFO to

...Brisbane Airport Corp. Pty. Ltd.'s (BAC) cash flows and earnings are likely to remain strained, with improvement dependent on a recovery in passenger traffic commencing in fiscal 2022 for domestic and fiscal 2023 for international travel. We expect both domestic and international passenger traffic will bottom out in fiscal 2021, with this year representing the first full year of pandemic impacts upon aviation travel. Recovery of domestic passenger numbers is anticipated to be driven by Australia's vaccine rollout timelines, which should reduce the need for domestic border closures in fiscal 2022. We anticipate rising vaccinations to increase momentum on the recovery in domestic air travel that has been achieved over the second half of fiscal 2021. Nonetheless, we project domestic passenger numbers to be about 75% and 80% of fiscal 2019 in fiscal 2022 and 2023, respectively. International traffic, while supported by the establishment of the Trans-Tasman travel bubble in April 2021, will...

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