From 24/7 Wall Street:

Faced with higher fuel prices and falling passenger traffic, the airline industry is ailing. There are concerns that some carriers will go bankrupt if the situation does not improve by the holiday season which usually is a heavy travel period.

The International Air Transport Association is seeing a tiny up-tick in travel trends.

The agency reported that international scheduled traffic results for July showing passenger demand declining 2.9% compared to a year ago. The July passenger demand fall of 2.9% was a relative improvement over the 7.2% drop in June and the 6.8% decline recorded over the first seven months of the year.

Shares in American (AMR) are down over 40% in the last year. The same holds true for United (UAUA). Delta (DAL) and Continental (CAL) have done better, but neither is up during the period.

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