Delta Air Lines Shares Fall as Economy Class Struggles Persist

Delta Air Lines shares declined more than 3.8% amid concerns over weak demand for its main cabin economy class seats, despite reaffirming its third-quarter earnings outlook with projected revenue growth between 2% and 4%. Delta President Glen Hauenstein highlighted that over 50% of the airline's revenue now comes from outside the economy class, with premium products showing growth and providing a cushion against weaker economy-class bookings. While corporate travel remains strong and Latin America and Pacific routes show resilience, trans-Atlantic demand was sluggish during the summer but is expected to improve in the fall. The airline plans to offer a record number of premium seats next year to counterbalance the ongoing challenges in filling economy seats, especially on domestic routes. This shift in revenue mix has allowed Delta to maintain positive returns without relying on main cabin demand. Meanwhile, other companies like TransDigm Group Inc. and Dover Corp. experienced minor stock declines but remain significantly below their 52-week highs.