Delta to slash fares by 50 percent.

Delta said the move would hurt its earnings in the short term, and analysts said other cash-strapped carriers would have to match the fare cuts. Delta shares fell almost 10 percent and shares of other airlines also declined.
"We believe the whole airline industry will now have to move in this direction; this will likely hurt revenues in the short run but could be beneficial in the long run," Calyon Securities analyst Ray Neidl said.
Atlanta-based Delta said it would cap one-way domestic economy fares at $499 and one-way first-class fares at $599.
"We doubt Continental Airlines can maintain $970 one-way fares between Houston and Newark while Delta offers first class via Atlanta for $549," JP Morgan analyst Jamie Baker wrote in a research note.
U.S. airlines have been struggling with record-high jet fuel prices over the past year and have seen stiff competition on fares from low-cost carriers over the past few years.
Delta's chief marketing officer, Paul Matsen, said on a conference call, "We view JetBlue, Southwest and AirTran Airways as our principle competitors."
He said the fare cuts would hurt earnings. "There will be short-term dilutionary impact from this," he said.
Larger airlines such as Delta have been restructuring to cut costs and develop cost structures similar to those of its low-cost rivals.
US Airways , United Airlines and ATA Airways are in bankruptcy, while several other legacy carriers have been negotiating concession packages with their labor groups to stay aloft.