Fitch upgrades American's issuer default rating
July 21, 2023
Fitch Ratings has upgraded American Airlines' issuer default rating (IDR) to "B+" from "B-", with a stable outlook. The US ratings agency says it has also upgraded the carrier's senior secured debt to "BB-"/"RR3" from "B"/"RR3" and unsecured debt to "B-"/"RR6" from "CCC"/"RR6". It adds that the rating upgrade reflects the airline's de-leveraging progress and Fitch's expectations that improving profitability and free cash flow provide a line of sight toward continued balance sheet improvement. The agency expects American to end the year with less than $43 billion in total adjusted debt, down from a peak of over $48 billion in 2021. Fitch states: "American is also benefitting from improved operational performance, with flight cancellations through the first several months of the year down materially from the year prior." The Fort Worth-based US major is set to take deliveries of more 737 Max and 787 aircraft in 2024, but total capital spending is expected to remain manageable, the agency notes. As of 31 March, American held $14.4 billion in liquidity, consisting of $11 billion liquid short-term investments, $452 million in cash and cash equivalents, and full availability on their $2.9 billion aggregate revolving credit facilities. Fitch believes that the 2025 risk is addressable "given that the loyalty programme, and slots, gate, and routes collateral underlying certain maturities has proven to be readily financeable in the past, providing the company with refinancing options".
Cabo Verde Airlines inducts first 737 Max
July 21, 2023
West African carrier Cabo Verde Airlines has received a Boeing 737 Max 8 that it says will enable it to restart flights within Africa and to Europe, North and South America. "This is a significant moment for Cabo Verde Airlines. With the addition of the 737 Max 8, we continue to expand our fleet to pre-pandemic levels," states Cabo Verde Airlines chief executive Sara Pires. "The delivery of an airplane with the capabilities of the 737 Max 8 allows us to meet the growing travel demand to our archipelago country at the crossroads of four continents." Data identifies one 737 Max 8 in operation with Cabo Verde Airlines as MSN 60432, which it is leasing from Aergo Capital. The jet was previously owned and operated by the defunct South African carrier Comair. The carrier currently flies within Cape Vere and to Paris and Lisbon with one 737. The latest aircraft addition is part of its "take-off" relaunch strategy intended to expand its network to routes operated prior to the pandemic.
Malaysia Airlines to induct first 737-8 in August
July 20, 2023
Malaysia Airlines is set to take delivery of its new Boeing 737-8 in August, following the jet's first flight test on 18 July.
9M-MVA is the first of 25 737-8s on order that are due to deliver through to 2026, the airline states. It signed long-term leases with Air Lease Corporation for these jets in February 2022. Fleets data shows that MSN 66439 is fitted with 174 seats and powered by CFM International Leap-1B engines. The Max narrowbodies are set to replace the ageing 737NG fleet across Malaysia Aviation Group, which constitute the largest proportion with 47 out of its 100-aircraft fleet. The 737-8 will also carry the airline’s wireless in-flight entertainment system, MHstudio, which is similar to the airline's refreshed 737-800s. Flightradar24 flight tracking data shows that on 17 July, 9M-MVA departed at 10:27 PDT from Renton Municipal Airport, where Boeing's 737 facility is located, and landed in Seattle at 13:08 PDT.