NEW YORK (TheStreet) -- Delta Air Lines (DAL) was falling -4.7% to $39.01 Wednesday after reporting traffic for August and lowering its third-quarter passenger revenue per available seat mile (PRASM) guidance.
The airline announced that PRASM grew 2% year-over-year for the month of August. The increase was due to continued strength in the U.S., which helped offset a point of negative pressure due to events in Russia, the Middle East, and Africa.
Delta said it now expects to report PRASM to grow between 2% and 3% in the third quarter, down from its previous guidance of an increase of between 2% and 4%.
The airline reported a monthly completion factor of 99.6% and an on-time arrival rate of 84.3% for the month of August.
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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 several positive factors, 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, attractive valuation levels, solid stock price performance, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins."