Airline exchange traded funds were down sharply Wednesday along with shares of Delta (NYSE: DAL) after the company reported weaker-than-expected earnings that were hit by higher fuel costs.

“We believe the high fuel environment is here to stay and the permanency of that condition must be a reality for Delta,” said Chief Executive Richard Anderson during the conference call. “Given the economic uncertainty, we believe it prudent to reduce capacity further as a hedge against the economy and higher fuel prices.”

Guggenheim Airline ETF (NYSEArca: FAA) and Direxion Airline Shares (NYSEArca: FLYX) were down about 3% on Wednesday.

Delta accounts for 13.4% of the Guggenheim ETF, which fell to a new 52-week low.

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