Delta Air Lines (DAL) Stock Declines as Oil Prices Rally

NEW YORK (TheStreet) -- Delta Air Lines (DAL) shares are down 1.26% to $46.22 in afternoon trading on Tuesday as rising oil prices take their toll on the airline sector today.

Airline stocks have been tied to the performance of oil in recent sessions as falling crude prices mean cheaper jet fuel for the airline industry.

Oil prices rallied in trading today after experiencing declines in the previous session after the U.S. Energy Information Administration released a report suggesting that output from seven major shale plays will see an 86,000 barrel reduction in daily output in June.

Industry analysts outside of the government are forecasting daily output from the shale plays to decrease by 57,000 barrels next month.

Industry standard Brent crude for June delivery is up 2.76%, or $1.79, to $66.70 per barrel, while U.S. West Texas crude is up 2.26%, or $1.34, to $60.59 per barrel in trading today.

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 revenue growth, good cash flow from operations, solid stock price performance, growth in earnings per share and increase in net income. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity."

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