FITCH RATINGS FORECAST POSITIVE 2011 FOR AIRLINES

Dino D'Amore
By Dino D'Amore December 10, 2010 11:35

FITCH RATINGS FORECAST POSITIVE 2011 FOR AIRLINES

Fitch Ratings has stated that as long as fares and revenues keep rising, US airlines post positive results in 2011.

“The critical driver of credit quality improvement in 2011 will be the continuation of positive trends in passenger yields and unit revenue linked to the steady recovery of high-fare business travel demand,” said the Fitch report. “Fitch’s mid-single-digit industry unit revenue growth forecast for 2011 hinges on a continuation of the favorable fare trends that helped drive a rapid recovery in passenger revenue per available seat mile (RASM) performance in 2010.”

As a result, analysts expect ratings for US airlines to rise in 2011, which Fitch said reflects “a modest strengthening of industry operating fundamentals and steady progress toward debt reduction and balance sheet deleveraging.” Although this assumes airlines use the cash to pay off debt.

Dino D'Amore
By Dino D'Amore December 10, 2010 11:35
Write a comment

No Comments

No Comments Yet!

Let me tell You a sad story ! There are no comments yet, but You can be first one to comment this article.

Write a comment

Only <a href="http://www.aviationnews-online.com/wp-login.php?redirect_to=http%3A%2F%2Fwww.aviationnews-online.com%2Ffinance%2Ffitch-ratings-forecast-positive-2011-for-airlines%2F"> registered </a> users can comment.