Airlines Face Bleak Horizon

The second quarter brought sweet relief to most major U.S. airlines as strong passenger demand, and in most cases higher fares, put them in the black.

But the high price of fuel remains a giant monkey on the industry's back, and analysts expect it will likely push many carriers into the red in the third and fourth quarters.

AirTran (AAI Quote), Alaska Air (ALK Quote), America West (AWA Quote), American Airlines' parent AMR (AMR Quote) and Continental Airlines (CAL Quote) all soared to second-quarter profits without the benefit of special items, joining perennial profit-makers JetBlue Airways (JBLU Quote) and Southwest (LUV Quote). ...