Moody’s upgrades Delta’s credit rating

Delta achieved another exciting financial milestone Tuesday when Moody’s Ratings, one of three major credit rating agencies, raised its credit rating based on Delta’s strong performance and financial outlook.

This ratings upgrade is the third that Delta has received in the last eight months, reflecting Delta’s momentum in continuing to strengthen the company’s balance sheet and financial foundation.

Moody’s was the only agency that maintained an investment-grade rating for Delta during the pandemic. S&P Global Ratings and Fitch Ratings have since raised their ratings, and all rate Delta’s credit as investment grade.

“It’s gratifying to have Delta’s credit raised a notch above investment grade, as we work to make our 100^th year the best in our history,” said Delta CFO Dan Janki. “This achievement is thanks to the outstanding work of our team, who continue to differentiate us from the competition and lead our industry as we reduce debt and strengthen our financial foundation.”

Moody’s cited Delta’s improving operations, free cash flow and debt reduction as well as tailwinds that include moderating capacity growth in the U.S., strong international demand, robust premium offerings and loyalty.

“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,” the report noted. 

Delta’s balance sheet strength remains a differentiator from the industry as we are one of only two airlines among our DOT-reporting competitors to hold the rating of investment grade across all three agencies – a sign of confidence in the durability of our business.

Forward Looking Statements  

Statements made in this article that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments or strategies for the future, should be considered “forward-looking statements” under the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees or promised outcomes and should not be construed as such. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments and strategies reflected in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the possible effects of serious accidents involving our aircraft or aircraft of our airline partners; breaches or lapses in the security of technology systems we use and rely on, which could compromise the data stored within them, as well as failure to comply with evolving global privacy and security regulatory obligations or adequately address increasing customer focus on privacy issues and data security; disruptions in our information technology infrastructure; our dependence on technology in our operations; increases in the cost of aircraft fuel; extended disruptions in the supply of aircraft fuel, including from Monroe Energy, LLC (“Monroe”), a wholly-owned subsidiary of Delta that operates the Trainer refinery; failure to receive the expected results or returns from our commercial relationships with airlines in other parts of the world and the investments we have in certain of those airlines; the effects of a significant disruption in the operations or performance of third parties on which we rely; failure to comply with the financial and other covenants in our financing agreements; labor issues; the effects on our business of seasonality and other factors beyond our control, such as changes in value in our equity investments, severe weather conditions, natural disasters or other environmental events, including from the impact of climate change; failure or inability of insurance to cover a significant liability at Monroe’s refinery; failure to comply with existing and future environmental regulations to which Monroe’s refinery operations are subject, including costs related to compliance with renewable fuel standard regulations; significant damage to our reputation and brand, including from exposure to significant adverse publicity or inability to achieve certain sustainability goals; our ability to retain senior management and other key employees, and to maintain our company culture; disease outbreaks, such as the COVID-19 pandemic or similar public health threats, and measures implemented to combat them; the effects of terrorist attacks, geopolitical conflict or security events; competitive conditions in the airline industry; extended interruptions or disruptions in service at major airports at which we operate or significant problems associated with types of aircraft or engines we operate; the effects of extensive government regulation we are subject to; the impact of environmental regulation, including but not limited to regulation of hazardous substances, increased regulation to reduce emissions and other risks associated with climate change, and the cost of compliance with more stringent environmental regulations; and unfavorable economic or political conditions in the markets in which we operate or volatility in currency exchange rates.   

Additional information concerning risks and uncertainties that could cause differences between actual results and forward-looking statements is contained in our Securities and Exchange Commission (SEC) filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and subsequent quarterly reports and other filings filed with the SEC from time to time. Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of the date of this article, and which we undertake no obligation to update except to the extent required by law.