Delta Achieves Key Financial Milestone, Returns To Fully Investment Grade Balance Sheet

Delta achieved an important financial milestone last week when S&P Global Ratings, one of three credit rating agencies, raised its rating to investment grade – a reflection of the company’s strong financial outlook. S&P is the last of the agencies to upgrade Delta to investment grade.  All agencies now recognize Delta’s industry-leading performance and our continued focus on strengthening the balance sheet through debt reduction.

“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,” said Dan Janki, Delta’s chief financial officer. “Thanks to the Delta team’s incredible work for our customers every day, we continue to extend our leadership position and separate Delta from the rest of the industry, and this is yet another example of that differentiation.”

Delta provided strategic insights into our future financial goals and long-term financial guidance at our Investor Day event on November 20. S&P evaluated these recent updates as part of their decision to upgrade Delta’s credit rating.

Achieving investment grade has been a key goal Delta committed to in 2021 while presenting its recovery plan to emerge from the pandemic. In S&P’s review of Delta’s financial metrics and qualitative factors, the firm also recognized Delta’s efforts in this endeavor:

“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.”

“Delta is well positioned to generate sustainably stronger credit measures. The company has steadily improved its earnings and cash flow over the past three years and we assume it will exceed the levels it reported in 2019 next year,” the report stated.

“We believe Delta will remain a key beneficiary of what appears to be a structural shift in passenger travel demand. The company has materially expanded its premium, loyalty, and international revenue over the past several years, which we assume will continue. Delta has highlighted its goal of generating durable earnings and we believe these segments provide the most upside to its business and profitability.”

Delta is one of only two airlines among our DOT-reporting competitors to hold the rating of investment grade across all three agencies.