NEW YORK (TheStreet) -- Shares of Delta Air Lines Inc. (DAL) are up by 3.69% to $42.11 in mid-morning trading on Tuesday, after the company reported its October 2014 consolidated passenger unit revenue (PRASM) grew by 3% over the same period for the previous year.
The airline said the increase in PRASM was "driven by improvements in domestic and transatlantic unit revenues."
Additionally, Delta Air Lines said its "solid operating performance continued through October" with a 99.9% monthly completion factor, and an 86.8% on-time arrival rate.
Watch the video below for more on Delta's October operating results:
Other airline stocks also on the rise today include United Continental (UAL) , up by 4.35% to $56.64, American Airlines (AAL) , higher by 3.48% to $43.46, and Southwest Airlines (LUV) , up by 2.35% to $36.14 this morning.
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Separately, TheStreet Ratings team rates DELTA AIR LINES INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate DELTA AIR LINES INC (DAL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to its closing price of one year ago, DAL's share price has jumped by 47.80%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, DAL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- DAL's revenue growth trails the industry average of 33.0%. Since the same quarter one year prior, revenues slightly increased by 6.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has increased to $1,358.00 million or 16.96% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -11.05%.
- The debt-to-equity ratio is somewhat low, currently at 0.82, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.45 is very weak and demonstrates a lack of ability to pay short-term obligations.
- You can view the full analysis from the report here: DAL Ratings Report