Americans are traveling in record-breaking numbers this summer. However, the travel is not translating to record-breaking profits for airlines. Delta announced on Thursday, July 11, that its profits dropped by 29% in the second quarter of 2024. The news sent shares tumbling 8% before Thursday’s opening bell.

Delta blamed higher costs and lower fares for the fall in profits. Though the company said that revenue grew, expenses reportedly rose 10%, including labor, fuel, airport fees and airplane maintenance.

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In addition, spending on labor grew 9% compared to 2023 after thousands of workers were hired as post-pandemic travel picked up.

Other airlines besides Delta also haven’t reaped the benefits of record air travel due to delays of new aircraft from Airbus and Boeing. Boeing sold just 14 jets in June compared to 304 new aircraft during the same month last year.

The dwindling number of planes produced by Boeing comes as the aero giant’s sales have reportedly fallen 70% in 2024. Boeing has been facing safety issues and legal woes, leading to less demand for its jets.

To make up for the lost profit, Delta is increasingly targeting premium passengers who have spurred much of the airline’s revenue. The airline is offering better seating, luxury lounges and other amenities to attract more premium travelers.

However, Delta’s CEO still expressed optimism despite the drop in profit, saying that he believes the airline industry is already taking the right steps to course correct. He predicts that by the end of August, the domestic market will improve as travel remains in high demand.