OREANDA-NEWS. Fitch Ratings expects Latin American airlines' credit quality to remain under pressure due to the weak macro and business environment in the region. The strength of the U.S. dollar relative to various currencies in Latin America also remains a concern. Operational performance should continue to reflect lower revenues, declining yields partially offset by lower fuel costs and limited improvement in operational performance during the balance of 2015. Adjusted financial leverage is expected to remain high and the leading airlines will continue to focus on cost control.

Lowering capex to avoid negative free cash flow (FCF) generation will be key to minimizing cash burn and negative rating actions. Positively, most of the leading airlines have adequate liquidity to face the challenging market conditions.

This dashboard includes Fitch's forecasts for the top three regional players:

--LATAM Airlines Group S.A. (LATAM, 'BB-'/Outlook Stable);
--Avianca Holdings S.A. (AVH, 'BB-'/Outlook Negative);
--GOL Linhas Aereas Inteligentes S.A. (GOL, 'B-'/Outlook Stable).

Fitch's three-year financial forecast for each rated issuer are included in the following full rating reports:

--LATAM Airlines Group S.A. (October 2015);
--Avianca Holdings S.A. (October 2015);
--GOL Linhas Aereas Inteligentes S.A. (October 2015).