NEW YORK (TheStreet) -- Delta Air Lines (DAL) stock is gaining 1.68% to $42.88 in early afternoon trading on Tuesday after the airline carrier gained approval from Mexican competition regulators for the $1.5 billion joint venture with Grupo Aeromexico.
Mexico's competition commission, known as Cofece, approved the partnership, which will allow the companies to collaborate on schedules, capacity and prices, Reuters reports.
Aeromexico will have to give up eight pairs of slots at the Mexico City airport and one of the carriers will have to cancel a route if they coincide with one another, according to the conditions set by Cofece, Reuters added.
The joint venture is pending approval in the U.S.
Additionally, Delta Air Lines reported a 4% year-over-year decline in consolidated passenger unit revenue for April because of "pressure from close-in domestic yields and foreign exchange," the Atlanta-based company said in a statement.
April traffic, or revenue passenger miles, was up 2.7% on a capacity, or available seat mile, increase of 2.5%.
Separately, Delta Air Lines has a "buy" rating and a letter grade of A- at TheStreet Ratings because of the company's impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and notable return on equity.
You can view the full analysis from the report here: DAL
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.