Americans are traveling in record numbers this summer, but Delta Air Lines said Thursday that it saw second-quarter profit drop 29% due to higher costs and discounting of base-level fares across the industry.
The airline is also predicting a lower profit than Wall Street expects for the third quarter.
On a call with analysts and reporters, Delta CEO Ed Bastian sent a clear message to low-cost carriers: Slow your growth to end the oversupply of seats on domestic routes.
Delta shares tumbled 6% in midday trading Thursday, and the shares of other carriers were dragged down as well. JetBlue, American, United and Southwest fell between 3% and 6%.
Delta said it earned $1.31 billion from April through June, down from $1.83 billion a year earlier.