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Two major U.S. airlines, Delta Air Lines Inc and American Airlines , will slash capacity this year as the recession erodes travel demand, the carriers said on Thursday.

(Corrects figure in third to last paragraph to 29,000 from 20,000)

GE Aviation, a unit of General Electric Co and the world's largest maker of jet engines, expects orders this year to halve as airlines slow plane buying amid a slump in travel demand.

Global airlines called for concerted action to prevent another runaway surge in oil prices as the International Air Transport Association nearly doubled its forecast for industry losses to $9 billion in 2009.

United Airlines on Thursday said it has asked the two largest planemakers to bid on an order that could replace its widebody fleet, a move experts say could jump-start demand for new planes from embattled U.S. carriers as they wade through an economic recession.

The prospect of a bumper plane order battle brightened a depressed outlook for plane manufacturers on Thursday as United Airlines was reported to be seeking 150 jets despite fresh warnings of industry losses.

Privately-owned airline Virgin Atlantic said yearly profits nearly doubled, but warned the weak economic environment would make it almost impossible for airlines to make a profit in the current year.

Privately-owned airline Virgin Atlantic said profits nearly doubled during the year to end February, despite the high fuel prices and economic slowdown that has devastated the industry.

Airline summer travel rates will fall 7 percent as Southwest Airline cuts summer air fares as low as $49, $69 respectively, and other airlines follow suit.

A proposed alliance between AMR Corp's American Airlines and British Airways would create a monster monopoly, British entrepreneur Richard Branson said on Thursday.

U.S. airlines saw a steep decline in the number of passengers they carried in April, but planes were more full, a sign that steep capacity cuts may be serving their intended purpose.

U.S. Airways, Continental Airlines and United Airlines parent UAL Corp temporarily cut service to Mexico on Friday, citing lower demand for flights to the country hardhit by a flu outbreak.

United Airlines parent UAL Corp said on Friday it would temporarily cut service to Mexico, becoming the second major U.S. airline to curb service to the country hit hard by a flu outbreak.

Continental Airlines Inc said on Friday it had temporarily reduced service to Mexico, citing lower demand as a deadly strain of flu spreads.

U.S. airline shares rallied on Wednesday, partially erasing two days of steep losses, as markets decided that the swine flu outbreak might not significantly crimp travel demand.

Global airlines were warned on Tuesday of significant falls in traffic due to the outbreak of swine flu, and their shares took another hit on fears that the fallout could be at least as bad as that of the 2003 SARS crisis.

Airline stocks were down Monday as the Dow Jones Industrial Average declined 130 points to 8,001 after the Air Transport Association posted its March passenger revenue fell 23 percent in the United States.

Who gets an upgrade and who gets bumped? What if your name is on a watch list? How can you avoid baggage fees? Why do airfares change several times in one day? Where to find the blacklist of airlines banned for safety reasons?

Southwest Airlines reported a larger-than-expected quarterly loss on Thursday as demand weakened in the recession and said it would offer voluntary employee buyouts in a bid to reduce costs, sending its shares down more than 11 percent.

AMR Corp , parent of American Airlines, on Wednesday reported a quarterly net loss on weaker travel demand, although -- excluding items -- the company beat expectations and its stock vaulted higher.

AMR Corp , parent of American Airlines, on Wednesday reported a quarterly net loss on weaker travel demand, although it was much smaller than expected.

The number of empty seats on planes flown by U.S. airlines is rising this year despite aggressive fare sales and capacity cuts, darkening the outlook for industry earnings in the first quarter and beyond.

AMR Corp's American Airlines is in early talks to raise cash from its credit card partner, Citigroup , by selling it frequent flyer miles, the Financial Times reported citing people familiar with the matter.

American Airlines is expanding in-flight WiFi service to 150 aircraft this year, allowing passengers to surf the Web and check their e-mails while in the air.

More struggles lie ahead for the tattered U.S. travel industry as hotels, casinos, airlines and travel agencies fight the tide of economic recession and flagging travel demand.

Welcome to seat 22B. You’re wedged between a chatty couple, your seat won’t recline because you’re against the bathroom wall, your personal air nozzle and seat light are both broken, and the overhead bins were already full when you arrived. You read...

As Brazil becomes one of the world?s major players in investment opportunity, airlines are vying to offer new flights and routes. American Airlines launched service from Miami (MIA) to Recife (REC) and Salvador da Bahia (SSA) on Nov. 2 and to Belo Horizonte (CNF) on Nov. 4. Delta Air Lines inaugurated daily flights from Atlanta (ATL) to Rio de Janeiro (GIG) and Manaus (MAO) in late November, alo.....

Continental Airlines said Thursday it will cut 3,000 jobs, or 6.7 percent of its 45,000 employees; retire 67 mainline aircraft; and reduce mainline flights because of soaring fuel costs, making it the second major airline this week to announce cutbacks.

American Airlines said Wednesday it would end flights between New York's John F. Kennedy International Airport and London's Stansted Airport as part of in a bid to cut capacity costs as fuel prices continue to soar.