ATLANTA, Feb. 11, 2016 /PRNewswire/ -- Moody's Investors
Service validated the performance of Delta Air Lines' (NYSE:
DAL) 80,000 employees worldwide and the company's disciplined
financial strategy when it upgraded Delta's debt rating to Baa3, an
investment grade level.
Delta is the first global U.S. airline to have its rating
restored to an investment-grade level by a major ratings firm.
"This is a major achievement for Delta's 80,000 employees
worldwide and is a direct result of their hard work," said
Paul Jacobson, Delta's Executive
Vice President and Chief Financial Officer. "Our employee focused
culture is driving superior cash returns that have allowed us to
pay down debt, invest in the business and return cash to
shareholders in a balanced approach."
Since 2009, Delta has reduced its debt by more than $10 billion and implemented a highly disciplined
strategy around capital deployment, improving operating margins and
harnessing the innovation of its people.
"We believe that Delta will continue to effectively manage its
network and operations, and build on the capital-efficient growth
strategy to sustain a competitive operating margin with free cash
flow that leads the industry and compares favorably to other
companies rated investment grade," said Moody's Senior Credit
Officer, Jonathan Root, in a press
release.
Root cited Delta's ongoing debt reduction, its targeted return
on invested capital, the use of free cash flow to repurchase
shares, and the contribution of $1
billion annually to its pension plans.
Forward Looking Statements
Statements in this press release that are not historical facts,
including statements regarding our estimates, expectations,
beliefs, intentions, projections or strategies for the future, may
be "forward-looking statements" as defined in the Private
Securities Litigation Reform Act of 1995. All forward-looking
statements involve a number of risks and uncertainties that could
cause actual results to differ materially from the estimates,
expectations, beliefs, intentions, projections and strategies
reflected in or suggested by the forward-looking statements.
These risks and uncertainties include, but are not limited
to, the cost of aircraft fuel; the impact of rebalancing our hedge
portfolio, recording mark-to-market adjustments or posting
collateral in connection with our fuel hedge contracts; the
availability of aircraft fuel; the effects of terrorist attacks or
geopolitical conflict; the possible effects of accidents involving
our aircraft; the restrictions that financial covenants in our
financing agreements will have on our financial and business
operations; labor issues; interruptions or disruptions in service
at one of our hub or gateway airports; disruptions or security
breaches of our information technology infrastructure; our
dependence on technology in our operations; the effects of weather,
natural disasters and seasonality on our business; the effects of
an extended disruption in services provided by third party regional
carriers; failure or inability of insurance to cover a significant
liability at Monroe's Trainer
refinery; the impact of environmental regulation on the Trainer
refinery, including costs related to renewable fuel standard
regulations; our ability to retain management and key employees;
competitive conditions in the airline industry; the effects of
extensive government regulation on our business; the sensitivity of
the airline industry to prolonged periods of stagnant or weak
economic conditions; and the effects of the rapid spread of
contagious illnesses.
Additional information concerning risks and uncertainties that
could cause differences between actual results and forward-looking
statements is contained in our Securities and Exchange Commission
filings, including our Annual Report on Form 10-K for the fiscal
year ended Dec. 31, 2015.
Caution should be taken not to place undue reliance on our
forward-looking statements, which represent our views only as of
Feb. 16, 2016, and which we have no
current intention to update.
Delta Air Lines serves nearly 180 million customers each year.
Delta was named to FORTUNE magazine's top 50 World's Most Admired
Companies in addition to being named the most admired airline for
the fourth time in five years. Additionally, Delta has ranked No.1
in the Business Travel News Annual Airline survey for an
unprecedented five consecutive years. With an industry-leading
global network, Delta and the Delta Connection carriers offer
service to 328 destinations in 57 countries on six continents.
Headquartered in Atlanta, Delta
employs nearly 80,000 employees worldwide and operates a mainline
fleet of more than 800 aircraft. The airline is a founding member
of the SkyTeam global alliance and participates in the industry's
leading trans-Atlantic joint venture with Air France-KLM and
Alitalia as well as a joint venture with Virgin Atlantic. Including
its worldwide alliance partners, Delta offers customers more than
15,000 daily flights, with key hubs and markets including
Amsterdam, Atlanta, Boston, Detroit, Los Angeles, Minneapolis/St.
Paul, New York-JFK and LaGuardia, London-Heathrow, Paris-Charles de Gaulle, Salt Lake
City, Seattle and Tokyo-Narita. Delta has invested billions of
dollars in airport facilities, global products and services, and
technology to enhance the customer experience in the air and on the
ground. Additional information is available on the Delta News Hub,
as well as delta.com, Twitter @DeltaNewsHub, Google.com/+Delta,
Facebook.com/delta and Delta's blog takingoff.delta.com.
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SOURCE Delta Air Lines