Fitch Ratings has upgraded Delta’s credit rating to investment grade, highlighting the company’s debt reduction, financial performance and a healthy demand for travel among other factors for the elevation.

The firm upgraded Delta to “BBB-”, which is an investment-grade rating, achieving a key goal Delta committed to in 2021 as it was presenting its plan to emerge from the pandemic. Fitch is one of three major agencies which evaluate and assign ratings to companies based on financial metrics. 

“The upgrade reflects that Delta's credit metrics improved considerably after the pandemic,” the Fitch report stated. “Delta also benefits from a solid business profile reflected in its leading position in key markets and strong brand reputation.”

Delta’s ongoing efforts to reduce debt were cited in the report, which noted that the company made $4.1 billion of debt payments in 2023 and $2.1 billion in the first half of 2024. Fitch also pointed out Delta’s manageable cost pressure, revenues from premium, loyalty and other diversified revenues, expected positive free cash flow and the expectation for “solid” financial results in 2024.

“Achieving our goal of returning to investment grade is a major accomplishment, and reflects the outstanding work of our entire team,” said Dan Janki, Delta’s chief financial officer. “We’ll continue to focus on strengthening our balance sheet and our financial foundation as we move forward into the second half of the year and beyond.”

Moody’s Investor Service, another rating agency, currently has Delta rated investment-grade. S&P Global Ratings currently has Delta at one step below investment grade.

Delta was one of the only U.S. airlines with an investment-grade credit rating prior to 2020, when the rating was downgraded due to the impact of the pandemic.