Delta Air Lines' second-quarter profit dropped 29% due to higher costs and industry-wide base-level fare discounts. CEO Ed Bastian called for low-cost carriers to decrease growth to address oversupply of seats on domestic routes.
Delta's revenue hit $16.66 billion, a record for the quarter, as travel demand soared. Premium sector outperformed, while main cabin sales remained flat.
Wealthier Americans are boosting airlines' revenue by seeking premium services, while middle-class families limit spending due to high inflation, accentuating a divide in consumer behavior.
Airlines like Delta and United are enhancing premium services to attract affluent customers, recognizing their significant contribution to business growth.
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