US airline debt management Part 1: The Big 3 take varying approaches to balance sheet strength

The three large US global network airlines continue working to de-lever their balance sheets through both debt reduction and paying down high interest debt. The companies seek to prove to investors that they remain committed to achieving a similar performance to industrial grade companies, and sustaining those results.

American, Delta and United are all at varying stages of adjusting their debt to favourable levels, with Delta obviously being the furthest along given it was the first of the big three to complete a merger integration with Northwest years ago. American appears to be charting a course of paying down high interest debt, but also tapping favourable interest rates for debt financing. United concludes there is inherent shareholder value in de-levering its balance sheet.

Markets are taking some notice of the changes those airlines are making. American was recently named to the S&P 500 and Delta recently received some credit upgrades. But none of the large global US network airlines are admitting that their balance sheet clean up is incomplete as they work toward reducing their debt.