Fitch affirms Delta at ‘BB+’; Outlook Negative

Fitch Ratings has affirmed Delta Air Lines’ (Delta) ratings at ‘BB+’. The Rating Outlook is Negative. The Rating Outlook is largely driven by spiking jet fuel prices and potential knock-on macroeconomic effects. Higher input costs along with remaining uncertainties around the pace of business and international travel may make it difficult for Delta to bring leverage below its negative rating sensitivity in the next 1-2 years. The Negative Outlook also reflects continued risk that persistently high jet fuel costs may pressure cash flows and necessitate increased borrowing compared to prior forecasts. Delta’s ‘BB+’ rating is supported by rebounding passenger traffic,