NEW YORK (TheStreet) -- Shares of Delta Air Lines (DAL) were climbing in late-afternoon trading on Friday after the Department of Transportation tentatively granted approval to the proposed alliance between the airline and Grupo Aeromexico (GRPAF).
The two companies are seeking to form a joint venture between the U.S. and Mexico in which they would coordinate flights and fares.
The Department of Transportation has proposed that the airlines divest enough takeoff and landing authorizations to support 24 new daily international flights from Mexico City and six from New York's John F. Kennedy airport.
"The Department tentatively finds these conditions are necessary to prevent harm to consumers resulting from the carriers' dominant positions at MEX and JFK, and the inability of new entrant carriers to access slots at the airports," according to an agency statement.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.
Delta Air Lines' strengths such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and growth in earnings per share outweigh the fact that the company shows weak operating cash flow.
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.