Delta Air Lines and United Airlines are dominating the airline industry, accounting for over 86% of profits among the top seven carriers. Despite thin margins, Delta and United’s focus on premium travel and strong networks are helping them weather challenges better than competitors. However, a recent air traffic controller shortage is impacting United’s profits in the second and third quarters.

Airfare prices are falling this year due to an oversupply of coach class seats in the market. Domestic travel demand has been weaker than expected, with airfare dropping 3.5% in June while overall inflation rose. Both Delta and United have adjusted their 2025 outlooks, emphasizing international travel, premium seats, and loyalty programs to boost revenues.

Airlines are exploring new revenue streams, such as Southwest introducing checked bag fees and assigned seats. Delta is testing segmentation in its premium cabins, while United revamped its Polaris class for longer-haul flights. Despite competition between Delta and United, both are focusing on premium services and diversifying revenue sources to stay ahead in the industry.

Read more at CNBC: Why Delta and United are pulling away from the airline pack