Airlines paint gloomy picture of near-term outlook

NEW YORK -- Airline executives said Thursday that a significant turnaround in the industry's fortunes is unlikely any time soon, and they will continue to slash fares, reduce seats and prod grounded business travelers to return to the air in order to withstand the crisis.

A stream of executives from the nation's major airlines told an investors conference here that they're wrestling with the most difficult economic environment for travel since after the terror attacks of Sept. 11, 2001.

Fewer people are flying for business or pleasure as the nation remains mired in recession. The airlines took a financial hit this spring when the H1N1 virus — or swine flu — kept wary travelers off planes, particularly to Mexico. Now, rising fuel prices threaten to cut into revenue.

Among the steps airlines are taking in response to conditions:

Starting in September, Delta will end non-stop flights from Cincinnati to London's Gatwick Airport and Frankfurt. It will reduce the number of weekly flights for those flying from Atlanta and Detroit to Mexico City.

Delta President Ed Bastian said the flu scare alone may have cost the airline $125 million to $150 million in the second quarter.

•Southwest has added fees for minors flying alone, cut flights that are not profitable, and is continuing to have fare sales as its traditionally higher-cost competitors hold sales of their own to try to win passengers.