S&P Global Ratings (S&P) has upgraded Delta Air Lines’ credit rating, to a ‘BB+’ rating, one step below an investment-grade rating citing financial performance and continued strong demand for air travel.
“The company, along with its mainline peers, has benefited from continuing strong passenger airline demand and industrywide capacity constraints that have led to full planes and high fares,” S&P said in its report. “Delta is on pace to generate sharply higher earnings and cash flow in 2023, led by capacity growth and steady operating margin expansion.”
S&P’s outlook for the US airline market remains positive, and that it expected continued improvement from Delta through 2024 despite cost headwinds.
“Delta’s credit profile has not fully recovered from the pandemic, but it is getting closer,” the report further added.
Delta’s performance in the first half (H1) of 2023 reported a total of $3 billion repaid with an aim to repay $4 billion in debt by the end of the year.
Moody’s Investor Service and Flitch Ratings has also upgraded Delta’s ratings recently.