Delta Air Lines downgraded to junk at S&P on travel drop
Delta Air Lines lost its coveted investment-grade status from one rater as S&P Global cut the company to junk. “The steep decline in airline bookings due to the coronavirus outbreak will sharply reduce Delta Air’s revenue and cash flow,” S&P said Tuesday as it lowered the carrier 2 notches to BB, or 2 steps below investment grade. The carrier’s efforts to cut costs probably won’t be enough to offset the lost sales, S&P said. “We expect passenger air traffic to begin to recover in late 2020,” S&P said. “However, any further delays will prolong the weakness in the company’s credit metrics.” If the shutdowns and travel restrictions start to improve by May, airlines should have sufficient cash to weather the storm and will make it through, a Raymond James analyst said. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-03-25/sky/delta-air-lines-downgraded-to-junk-at-s-p-on-travel-drop
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Delta Air Lines downgraded to junk at S&P on travel drop
Delta Air Lines lost its coveted investment-grade status from one rater as S&P Global cut the company to junk. “The steep decline in airline bookings due to the coronavirus outbreak will sharply reduce Delta Air’s revenue and cash flow,” S&P said Tuesday as it lowered the carrier 2 notches to BB, or 2 steps below investment grade. The carrier’s efforts to cut costs probably won’t be enough to offset the lost sales, S&P said. “We expect passenger air traffic to begin to recover in late 2020,” S&P said. “However, any further delays will prolong the weakness in the company’s credit metrics.” If the shutdowns and travel restrictions start to improve by May, airlines should have sufficient cash to weather the storm and will make it through, a Raymond James analyst said. <br/>
