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S&P upgrades Delta Air Lines' credit rating, marking full investment-grade status

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Alain Bellemare E.V.P. & President – International | Delta Air Lines

By Sky Industry News

Dec 5, 2024

Delta Air Lines has reached a significant financial achievement as S&P Global Ratings upgraded its credit rating to investment grade. This upgrade makes S&P the last of the three major credit rating agencies to recognize Delta's improved financial standing. The company has been focusing on debt reduction and strengthening its balance sheet.

Dan Janki, Delta's chief financial officer, expressed optimism about this development: "It’s exciting to see Delta return to investment grade at all three credit agencies as we near the end of 2024 and set our sights on making our 100th year the most profitable in our history."

The upgrade follows Delta's Investor Day event on November 20, where it shared strategic insights into future financial goals. S&P evaluated these updates before deciding on the credit rating change.

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Delta committed to achieving investment grade status in 2021 as part of its recovery plan from the pandemic. S&P acknowledged Delta's efforts: "Delta has enhanced its capacity to withstand unexpected earnings weakness linked to historically volatile airline market conditions and preserve credit measures commensurate with its rating."

The report further stated that "Delta is well positioned to generate sustainably stronger credit measures," highlighting improvements in earnings and cash flow over recent years. It also noted a structural shift in passenger travel demand benefiting Delta.

Currently, Delta is one of only two airlines among DOT-reporting competitors holding an investment-grade rating across all three agencies.

Forward-looking statements within this article are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. More information about these risks can be found in Delta's SEC filings.