DBRS Publishes Commentary on North American Airline Industry

DBRS Limited (DBRS) has today published a commentary entitled “The North American Airline Industry – Leaving the Turbulence Behind?” In this commentary, DBRS evaluates the impact of the external shocks during the decade between 2000 and 2009 on the industry and how airlines have evolved in the subsequent five years of relative calm to improve their operating efficiency and financial health. Notwithstanding the recent improvements, DBRS believes that the industry’s certain fundamental characteristics could still lead to renewed volatility. As such, although North American airlines are now in a much better financial and cost position, they will need to continue their vigorous focus on cost and capacity management, rational price competition and financial discipline. These elements will be crucial to the future viability and success of the industry and individual airlines.

Notes:
The applicable methodology is Rating Companies in the Airline Industry, which can be found on our website under Methodologies.

A copy of this commentary is available by contacting us at info@dbrs.com.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.