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STORY: :: Summer travel boom not

enough to boost airline earnings

:: Despite record summer-travel demand, airlines'

quarterly reports are looking less than stellar

:: An excess supply of seats in the price-sensitive

end of the market is forcing airlines to discount fares

:: New labor contracts and higher lease rates and maintenance

costs have also inflated the industry's expenses

:: American Airlines slashed its second-quarter profit forecast,

citing weaker pricing power in the domestic market

:: while Southwest has been hit hard by Boeing’s jet delivery

delays and is under pressure to shake up its business

:: The pressure is also being felt in Europe, where the

first quarter for airlines was tougher than anticipated

:: Ryanair's profits slumped by almost half for

the quarter, after ticket prices plunged 15%

:: U.S. airlines are now moderating capacity

:: Annual domestic seat growth is estimated to slow

to 3% in the September quarter from 6% a quarter ago