Mubasher:  A new report by Moody's Investors Service is expecting the passenger airline sector to be exposed to new costs from global decarbonization agreements.

Airline companies’ ability to pass through carbon-offset costs and the extent of their networks will help identify the credit risk of the transition.

"An airline's exposure to carbon transition risks will be affected by a variety of factors, but route mix will be the most important consideration owing to differences in the regulatory regimes governing 
emissions from domestic and international flights," stated the report.

"The higher the proportion of an airline's flights that are international, the greater its exposure will 
be to carbon costs," the report further added.