Moody’s Ratings has upgraded Delta Air Lines’ credit rating, citing the airline’s strong performance and financial outlook. This marks the third upgrade for Delta in eight months, reflecting its efforts to enhance its balance sheet and financial stability.
During the pandemic, Moody’s was the only agency to maintain an investment-grade rating for Delta. S&P Global Ratings and Fitch Ratings have since followed suit, all rating Delta’s credit as investment grade.
Delta CFO Dan Janki expressed satisfaction with the upgrade: “It’s gratifying to have Delta’s credit raised a notch above investment grade, as we work to make our 100th year the best in our history.” He credited this achievement to the team’s efforts in reducing debt and strengthening their financial foundation.
Moody’s highlighted several factors contributing to Delta’s improved rating, including enhanced operations, free cash flow, debt reduction, moderated capacity growth in the U.S., strong international demand, premium offerings, and loyalty programs. The report noted that “Delta’s business profile – characterized by its strong consumer brand, global network, competitive operating performance, emphasis on premium service offerings and the cash flows from its relationship with American Express – is strong.”
Delta stands out in the industry with its balance sheet strength. It is one of only two airlines among DOT-reporting competitors holding an investment-grade rating across all three major agencies.
The article also contains forward-looking statements under securities laws regarding future expectations and strategies. These statements are subject to risks and uncertainties that could cause actual results to differ materially from projections. Additional information on these risks can be found in Delta’s SEC filings.
