Delta announced that PRASM grew 4.5% from the year-ago month in June, below its guidance of 5% to 7% for the month. The airline said the results were driven by capacity increases across the industry, and lower business demand to Latin America due to the World Cup.
The disappointing results helped drive down other airlines including United Continental and JetBlue Airways (JBLU).
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TheStreet Ratings team rates UNITED CONTINENTAL HLDGS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate UNITED CONTINENTAL HLDGS INC (UAL) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and poor profit margins."