How you’re thinking about streaming and fragmentation

Atlanta

Delta Air Lines has reported better-than-expected quarterly results and reinstated its profit guidance for 2025, with shares rising significantly following the announcement. The company expects third-quarter earnings between $1.25 and $1.75 per share, and full-year 2025 earnings between $5.25 and $6.25 per share, both ahead of market expectations.

Despite strong premium and transatlantic travel revenue, Delta noted a 5% year-over-year decline in main cabin revenue, reflecting weaker demand among price-sensitive economy travelers. In response, Delta and other airlines plan to reduce domestic main cabin capacity, with industry-wide seat reductions expected to begin soon. The company has not yet specified the extent of these cuts.

Delta beats earnings, but main cabin down 5%

Rally mode today. The U.S. Global Jets ETF moving higher, but the group is still down for the year. Delta's leading that space this morning after posting a beat on quarterly results and reinstating their 2025 profit outlook. Earnings call is now underway. Stocks up almost 13 percent. Our Phil Lebeau talked to Ed Bastian this morning and joins us with more. Hey, Phil. And, Carl, what we will expect on that call are a number of questions about what's going to happen to capacity after the summer. We talked to Ed Bastian about that earlier this morning. We'll talk a little bit more about that in just a little bit. You mentioned that they beat on the top and the bottom line. That was the initial pop that you saw in shares before the market, but then it's continued in part because of the company's guidance, not only for the third quarter. As you take a look at the third quarter, expecting to earn between $1.25 and $1.75, the street's at $1.31. For all of $25, remember, they pulled it after the first quarter. They are reinstating their guidance $5.25 to $6.25. The street's at $5.39. Important point here. Remember in January, after they reported their Q4 results and they gave their guidance for the year, they expected to earn at least $7.35 a share. What's changed? Well, the economy class consumer has pulled back. Premium revenue, it still continues to grow. We've talked about this for some time. Delta has been among the leaders in the industry in terms of driving premium revenue growth up 5% compared to a year ago, but the main cabin, that's where the softness is, down 5% compared to Q2 of 24. Here's Ed Bastian on Squawk Box talking about the state of the consumer and capacity cuts. The main cabin is down 5% and that's where you have your most price sensitive customers. You'll see post mid-August is you'll see industry capacity, particularly in the main cabin, domestically coming down significantly. Delta's doing that. I think all the other airlines are doing to some level that we actually expect to see domestic seats in the main cabin negative starting in August. For the industry. For the industry and Delta. How much does Delta cut capacity after the summer surge? That remains to be seen and the call has just begun. We expect some very pointed questions from analysts in terms of saying, okay, what are we talking about? 1%? 2%? We'll relay the information on to you if Delta gets more granular during the conference call. By the way, transatlantic travel remains strong up 2% relative to where it was a year ago. As you take a look at the other airline stocks, they're all moving higher following this Delta report and the guidance from Delta. Remember, we hear from United next week and then the week after that, that's when we hear from Alaska, American, Southwest. Bottom line is this, guys, we've talked about this for some time. The economy class consumer, the person who's looking for the bargain basement fare, they've been pulling back for some time and you see that in the booking patterns. We're seeing that this summer. That's where the softness is when it comes to airline travel. Yeah, it's just that broader reflection of a bifurcation and consumer appetite to spend right now. Phil, thank you.

Russia has intensified its aerial attacks on Ukraine, using upgraded drones designed to cause more damage and evade air defences. In Kyiv, a young woman captured video of the drones overhead — just before explosions echoed through the city.

Kyiv

Global Tariffs

Russia’s upgraded drone tactics bring intensified attacks across Ukraine

The Ventura County Fire Department said they responded to calls of people having breathing problems at a farm in Ventura County, California, after federal agents appeared to deploy tear gas canisters into the crowd.

Ventura County

Intense standoff in California between protesters, federal agents

A federal judge has green-lit a class action lawsuit challenging President Trump's executive order to end birthright citizenship and issued a preliminary injunction blocking the order.

Washington

Judge blocks Trump's birthright citizenship order

A partial tunnel collapse in Los Angeles temporarily buried 31 workers in Los Angeles, California. CBS News' Carter Evans reports on the rescue operation.

Los Angeles

31 trapped workers rescued after tunnel collapse

U.S. Secretary of State Marco Rubio expressed “disappointment and frustration” over continued Russian attacks on Ukraine and said new sanctions on Russia are a “real option.” Kylie Atwood has more details from Kuala Lumpur, Malaysia.

Kuala Lumpur

Rubio: New Russia sanctions a ‘real option’

With Russia again bombarding Ukraine with drones, U.S. President Donald Trump says he’s considering sending another missile defence system to Ukraine.

Ukraine Invasion

Trump muses missile defence system for Ukraine

Officials in Texas are promising to address concerns about flood warnings in parts of the state, but say the ongoing search-and-rescue efforts must be complete first.

Texas

Texas officials to address flood warnings after search complete

Linda Yaccarino is stepping down as CEO of X after two years leading Elon Musk's social media company. Yaccarino's departure comes one day after the company's Grok chatbot began pushing antisemitic tropes in responses to users.

San Francisco

Yaccarino steps down as CEO of Elon Musk's X

Parts of Ukraine were on fire overnight after Russia launched its largest drone attack on Ukraine since the war unfolded. Just hours earlier, Trump directly called out Vladimir Putin for stalled peace talks.

Moscow

Trump calls out Putin for stalled peace talks

The Trump administration branded the event as one of the steps it is taking to reshape its relationship with the African continent.

Five African leaders have lunch with Trump

The search continues in central Texas for the more than 160 people still missing from the deadly floods that hit over the Fourth of July. CBS News reporter Karen Hua has more.

Kerr County

Recovery operations ongoing in Texas as more than 160 still missing

U.S. President Donald Trump announced on social media that he issued tariff letters to Algeria, Brunei, Iraq, Libya, Moldova and the Philippines.

Trump sends tariff letters to six more countries

Video released by the Houthi media center shows the bulk carrier ‘Magic Seas’ being attacked and later sinking in the Iran-backed rebel group’s first attack this year on a commercial shipping vessel in the Red Sea.

Sana'a

Middle East Conflict

Houthi rebels claim responsibility for attack on ship in Red Sea

The European Court of Human Rights in Strasbourg ruled Russia violated international law in Ukraine and was responsible for the downing of Malaysia Airlines Flight MH17.

Top European court rules Russia violated international law in Ukraine

The death toll from the July Fourth flash flood that ravaged a swath of central Texas Hill Country rose on Tuesday to at least 109, many of them children, as search teams pressed on through mounds of mud-encrusted debris looking for scores of people still missing.

Texas flood death toll hits triple digits, tally of missing tops 180

U.S. President Donald Trump pushed back during his Cabinet meeting about a question regarding Jeffrey Epstein. The DOJ claims Epstein had no list of clients, which is drawing criticism from some of the president's supporters.

Trump questioned over report saying Epstein didn't have client list

The copper industry is facing new uncertainty after U.S. President Donald Trump said he will impose 50 per cent tariffs on all copper imports. More than half of all Canadian copper exports go to the U.S.

Ontario

Trump threatens 50% tariff on copper imports

CNN’s Josh Cambell reports on questions over a lack of flood warning signals and lagging investment in river gauges in Kerr County after deadly floods killed over 100 people in Central Texas.

Officials face questions over preparedness for Texas floods

Hundreds of firefighters battled a fast-moving wildfire that reached the outskirts of the southern French city of Marseille on Tuesday, forcing people to stay indoors and the nearby airport to close.

Marseille

France wildfire shuts down Marseille airport

Liverpool's Portuguese forward Diogo Jota was probably speeding when the Lamborghini car he was driving crashed in northwestern Spain, killing him and his brother, police said in a preliminary report.

Cernadilla

Liverpool's Jota likely speeding when car crashed, police say

French President Emmanuel Macron arrived in Britain on Tuesday for a state visit mixing royal pageantry with thorny political talks about stopping migrants from crossing the English Channel in small boats.

London

UK royals welcome France's Macron for state visit

U.S. President Donald Trump said the U.S. will send more weapons to Ukraine as Russian attacks intensified in recent weeks. The decision comes after the U.S. halted certain shipments last week.

Trump says U.S. will send more weapons to Ukraine

Brazil hosted the second and final day of the 17th BRICS Summit in Rio de Janeiro on Monday.

Rio de Janeiro

BRICS summit ends on health issues, role of global south countries

U.S. President Donald Trump, hosting Israeli Prime Minister Benjamin Netanyahu at the White House, said the United States had scheduled talks with Iran and indicated progress on a controversial effort to relocate Palestinians out of Gaza.

Netanyahu meets Trump as Israel, Hamas discuss ceasefire

Search teams continue to look for survivors after catastrophic flash floods overwhelmed parts of the US state of Texas. About 100 people have been killed and dozens more are missing. Officials say the National Weather Service didn't provide enough warning of the heavy rain.

Rising Texas death toll fuels anger over 'inadequate warning'

Leaders of BRICS have warned of the dangers of tariffs - saying they don't want a confrontation with US President Donald Trump. The group of emerging nations made the comments at their summit in Brazil. They also discussed Gaza and tensions in the Middle East.

BRICS summit rejects U.S. tariff threats, tackles trade and Gaza

Video captured by a BBC News crew shows French police slashing a boat filled with migrants trying to cross into the U.K. The crackdown comes ahead of a summit this week between the French president and British prime minister.

French police slashing migrants’ boat in crackdown

President Donald Trump's Justice Department and FBI released a memo concluding that there is no evidence Jeffrey Epstein had a "client list." The FBI confirmed that more than 1,000 victims were harmed by Epstein.

FBI: Epstein investigation turned up no 'incriminating client list'

The death toll from the devastating floods in Texas has risen to at least 90 as rescue workers continue to search for dozens of missing people. At least 27 campers and counselors at Camp Mystic in central Texas died in the floods.

Kerrville

At least 90 people killed in Texas floods

A shooter is dead after opening fire at a U.S. Border Patrol building in McAllen, Texas, a Department of Homeland Security spokesperson said. CBS News' Shanelle Kaul has the latest updates.