Delta Air Lines (DAL) saw its stock rise by 2.7% to close at $64.26 on December 4, 2024, following a significant upgrade from S&P Global Ratings. The credit rating agency elevated Delta's issuer credit rating to 'BBB-' from 'BB+', highlighting the airline's steady margin expansion and increasing revenue, which are expected to support stronger credit measures. This upgrade reflects confidence in Delta's ability to generate robust free operating cash flow and its commitment to debt reduction, bolstered by favorable passenger demand. The positive sentiment was further supported by the International Air Transport Association's report of a 7.1% y/y increase in global air traffic for October, indicating a strong recovery in the aviation sector.
Additionally, Delta's recent opening of a $50 million pilot training facility in Salt Lake City is seen as a strategic move to enhance operational performance, further boosting investor confidence. Despite the stock's upward movement, trading volume was notably low at 4,012,407 shares, about 45% of the average daily volume, suggesting that the price action was driven more by the positive news than by broad market participation.