S&P turns Delta Air view to positive

S&P said it changed its outlook on Delta Air Lines Inc. to positive from stable and affirmed its BB issuer rating. The debt ratings are unchanged.

“We expect Delta will generate credit measures commensurate with a higher rating this year, with further improvement in 2024. Our positive outlook on Delta primarily reflects our expectation that the company will generate credit measures that are strong for the rating, including FFO to debt in the 20%-25% range and adjusted debt to EBITDA below 4x in 2023.

“We also estimate improvement in the company's credit profile will continue in 2024. Strong passenger demand underpinned significant growth last year and enabled Delta to cover historical peak jet fuel costs with much higher ticket prices, leading to financial results that exceeded our previous forecasts,” the agency said in a press release.

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