Delta and United Airlines are anticipated to report strong third-quarter results due to healthy international, corporate, and premium ticket sales. Premium carriers like Delta and United are thriving, while budget airlines struggle with diminished domestic demand. Delta’s revenue is expected to exceed last year’s by 2% to 4%.

United Airlines’ revenue per available seat mile (RASM) may decrease year-over-year in the third quarter, attributed in part to flight caps at Newark Airport. However, RASM is predicted to improve later in the year due to strong international demand and corporate sales. Airlines are cutting domestic flight capacity to reduce discounts.

Spirit Airlines is reducing capacity by 25% during bankruptcy proceedings, which could benefit Frontier Group Holdings. However, demand from budget-conscious consumers remains low, affecting carriers like Frontier. Sun Country Airlines is standing out by diversifying into charter flights and cargo transport for companies like Amazon.

The airline industry is facing challenges as carriers that focus on domestic coach fares struggle with less-affluent consumers watching their spending. Airlines are trying to curb discounts and promotions. Budget carriers like Sun Country and Frontier are finding success in new lines of business.

Read more at Yahoo Finance: Delta Kicks Off Airline Earnings Tomorrow. Here’s What to Watch For.