Delta Air Lines (DAL) stock is experiencing an uptick today, driven by a recent upgrade from S&P Global Ratings. On December 4th, S&P Global Ratings raised Delta's issuer credit rating to 'BBB-' from 'BB+', citing the airline's steady margin expansion and increasing revenue. The upgrade reflects confidence in Delta's ability to generate stronger credit measures, supported by favorable passenger demand and a commitment to debt reduction. This positive outlook is bolstered by Delta's new leverage target, which signals management's focus on strengthening the balance sheet.
Additionally, the International Air Transport Association (IATA) reported solid growth in global air traffic for October, with a 7.1% year-over-year increase in revenue passenger kilometers. This continued demand growth in the airline industry further supports Delta's positive market performance. The combination of improved credit ratings and robust industry demand is contributing to the stock's rise.
Delta Air Lines shares are currently trading at $63.82, up 2.00% from the previous close of $62.57, and 1.43% higher than the opening price of $62.92.