Americans are traveling in record numbers this summer, but Delta Air Lines experienced a 29% drop in second-quarter profit due to increased costs and industry-wide discounting of base-level fares. The airline is anticipating lower profits for the third quarter compared to Wall Street expectations, causing shares to plummet by 8% before the opening bell on Thursday, dragging down the shares of other carriers as well.
Delta reported earnings of $1.31 billion from April through June, a decrease from $1.83 billion the previous year. Despite the profit decline, revenue reached nearly $16.66 billion, marking a company record for the quarter. This surge in revenue aligns with the surge in air travel, as evidenced by the Transportation Security Administration screening over 3 million travelers in a single day.
