To confirm all activity that suggests the airline industry is hurting, Delta and American Airlines reported a combined $2.49 billion-dollar loss for the second quarter.

At a time when travel is usually in its busiest season, high fuel costs have pushed air carriers to downsize their workforce and ground planes.

The ATA projects a $12 billion-dollar loss for the year across the industry, and early second quarter results support that prediction.

American Airlines projects a cost increase of 26% for the third quarter, after they have already taken a $1.45 billion-dollar loss in quarter number two. The airline cut its domestic capacity 12% for the fourth quarter, and will have slashed its labor force by eight percent by year’s end.

Delta, which is closing on a deal to obtain Northwest Airlines, actually reported a revenue increase of 10% for the second quarter. However, the second quarter fuel bill, cuts in domestic capacity, and job buyouts left Delta in the negative.

Travelers are now being advised against discretionary travel and impending high fares. Simply put, airlines have to raise prices and reduce costs in efforts to stay in business. And that doesn’t make for happy travels.

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