Fitch upgraded Delta credit. All the major ratings agencies now have DAL just one level below investment grade. Investment grade is achievable and probable by at least one agency in 2016. In their report they already account for moderate pilot cost increases in 2016 - 2017.

The three major credit rating agencies for commercial paper are S&P, Moody's, and Fitch similar to the consumer credit ratings of TU, Experian and Equifax. Now that all three are in agreement and have positive outlooks, the stage is set for one of them (probably Moody's) to upgrade Delta to investment grade. This is a substantial achievement 7 years out of bankruptcy. This also shows sustainability. Unlike stock ratings, debt ratings are a more conservative and business focused evaluation. Stock recommendations can be based on fundamentals of the company but also industry trends, momentum, cyclicality, and the opinion of the analyst.

Delta is very well positioned financially and improving. Affordability of pay restoration is well within their ability while keeping the pilots PS. (pension substitute) Profit sharing reductions will only offset our ability to benefit from ancillary revenue generated by outside investments and outscoring. The next step in building a global industrial transportation company is to take significant positions in markets outside the U.S. This is most likely done through JV and equity stakes in airlines around the world which is already happening. The investment grade rating gives Delta the access to capital it needs to continue the expansion.
https://www.fitchratings.com/site/fi...ease?id=990795