THREE big us airlines are poised for a credit recovery as an American recession looms, according to S&P Global Ratings.
Yet the US airline industry will continue to experience a positive trend in passenger traffic in 2023 due to capacity constraints, leading to full planes and strong fares, reports the American Journal of Transportation.
The report also highlights that S&P Global Ratings has recently upgraded its standing of Delta Air Lines, American Airlines and United due to better-than-expected operating results in 2022, with further improvements expected in 2023.
The report suggests that the profitability and credit measures of the big three airlines in the US will continue to improve, primarily driven by growth in earnings and cash flows as the post-Covid air travel recovery continues.
'We believe the three largest US airlines can generate improvement in operating results and credit measures at least through this year,' said S&P Global Ratings credit analyst Jarrett Bilous.
'Although a weaker US economy poses a downside risk to our forecasts, particularly if jet fuel prices remain elevated, we believe this should be manageable as the post-Covid recovery in travel demand continues.'
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Yet the US airline industry will continue to experience a positive trend in passenger traffic in 2023 due to capacity constraints, leading to full planes and strong fares, reports the American Journal of Transportation.
The report also highlights that S&P Global Ratings has recently upgraded its standing of Delta Air Lines, American Airlines and United due to better-than-expected operating results in 2022, with further improvements expected in 2023.
The report suggests that the profitability and credit measures of the big three airlines in the US will continue to improve, primarily driven by growth in earnings and cash flows as the post-Covid air travel recovery continues.
'We believe the three largest US airlines can generate improvement in operating results and credit measures at least through this year,' said S&P Global Ratings credit analyst Jarrett Bilous.
'Although a weaker US economy poses a downside risk to our forecasts, particularly if jet fuel prices remain elevated, we believe this should be manageable as the post-Covid recovery in travel demand continues.'
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