NEW YORK (TheStreet) -- Shares of Delta Air Lines Inc. (DAL) are gaining by 4.20% to $48.16 in mid-morning trading on Thursday, as the airline announced it is projecting its pre-tax income for next year will grow by 11% to $5 billion, helped by lower fuel prices and rising capacity, Dow Jones Business News reports.
Delta made the announcement during its investor day presentation.
The airline believes lower fuel prices will result in a benefit of $1.7 billion for the company next year. The company also predicted its fuel prices will drop to between $2.40 and $2.50 per gallon, compared to its previous projection of $2.63 to $2.68 per gallon, Dow Jones added.
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Delta is also expecting a 2% rise in capacity next year.
Additionally, Delta and American Express Co. (AXP) have renewed their agreement allowing Delta to be the company's exclusive credit card issuer, Bloomberg reports.
The agreement is extended for another six years and will take effect next month.
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."