Positive momentum in U.S. airline passenger traffic will persist in 2023 amid industrywide capacity constraints that should lead to full planes and robust fares, said a report published today by S&P Global Ratings, entitled, "The Big 3 U.S. Airlines Are Poised For Credit Recovery Amid Looming U.S. Recession."

S&P Global Ratings recently took positive rating actions on Delta Air Lines Inc., American Airlines Group Inc., and United Airlines Holdings Inc., following operating results that exceeded its 2022 estimates and assumes further improvement in 2023. Credit measures and profitability at the big three U.S. airlines will likely strengthen further primarily from growth in earnings and cash flows as the post-pandemic air travel recovery continues.

"We believe the three largest U.S. 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 U.S. economy poses a downside risk to our forecasts, particularly if jet fuel prices remain elevated, we believe this should be manageable as the post-pandemic recovery in travel demand continues," Mr. Bilous added.