Delta Air Lines' (DAL) year-over-year rise in Q3 load factors despite price hikes indicates robust underlying demand, while Q4 revenue guidance was better than expected and points to year-over-year revenue per available seat mile acceleration relative to Q3, UBS Securities said.

Although the near-term stock outlook is partly dependent on the macroeconomic landscape and elevated fuel prices, the brokerage said it believes Delta Air Lines remains one of the best-positioned airlines to drive durable margin expansion over the long term.

The brokerage said in a Sunday research report that the airline's Q4 non-fuel cost issues are transitory, and cost per available seat mile-ex inflation should moderate as it laps higher costs next year.

UBS reiterated its buy rating on the stock and lowered its price target to $102 per share from $105.

Shares of Delta Air Lines were down 1.6% in late Monday morning trading.

Price: 80.86, Change: -1.31, Percent Change: -1.59