NEW YORK (TheStreet) -- Delta Air Lines (DAL) hit an all-time high of $34.19 as of 11:10 a.m. on Tuesday after the company announced that its February consolidated passenger unit revenue rose 4% year over year.
Passenger revenue per available seat mile, or PRASM, is a key indicator of strength within the airline industry. Delta's PRASM in February rose due to strong domestic demand and gains in the trans-Atlantic entity. Delta canceled 8,000 flights during the month as a result of harsh winter weather, and February's PRASM included 0.5 benefit points from those cancellations.
Delta successfully completed 95.5% of its February flights and had an on-time arrival rate of 77.5%. Finally, the company projected a fuel price per gallon of $2.99 to $3.04 for the first quarter.
TheStreet Ratings team rates DELTA AIR LINES INC as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate DELTA AIR LINES INC (DAL) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations, solid stock price performance, compelling growth in net income and revenue growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."