Delta Air Lines CEO Questions Financial Strategy of Low-Cost Carriers

Delta Air Lines CEO Ed Bastian had stark words for competing airlines that depend on selling low-priced tickets to stay alive. From a report: "You cannot, if you are on the lower end of the industry's food chain, continue to post losses, particularly given the health of the demand set we've seen over these last couple of years," Bastian said as Delta reported disappointing second-quarter financials and warned things could get even worse. Airlines that can't break even "will not be given the opportunity to continue to run business models they have," he added. Bastian's comments came in response to a question about the potential for structural changes within the industry as many airlines struggle to remain profitable. [...] A big contributor to the lower profits was lower airfares and extra capacity, especially in economy class,

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