Delta Air Lines Faces Profit Decline Despite Record Travel Demand

Increased costs and discounted fares weigh on earnings as airline industry grapples with overcapacity.

Delta reported a 29% drop in Q2 profits, earning $1.3 billion compared to $1.83 billion a year earlier.
Revenue rose 7% to $16.7 billion, setting a company record for the quarter.
Higher operating expenses, including fuel and labor costs, increased by 10%, impacting profitability.
The airline's stock fell 7-9% after the earnings report and lower-than-expected Q3 profit forecast.
Premium ticket sales grew 10%, while main cabin revenue remained flat, reflecting a shift in consumer spending.