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The summer is supposed to be a time of high flying for the airlines -- but this year sky-high jet fuel costs have clipped the industry's wings. AMR, parent of American Airlines, the nation's biggest air carrier, posted a net-loss of $248 million in the second quarter -- thanks to a 47 percent jump in fuel costs. And at Delta, which is currently digesting a merger of Northwest Airlines, the loss was $1 billion. Special items related to its exit from bankruptcy - turned that into a small profit. The numbers may not have been as bad as expected, but the picture still looks bleak. In a report released before the earnings, ratings agency Fitch warned the industry faces "multiple bankruptcies and liquidation" next year. Adding: "the sheer magnitude of increasing energy prices and resulting weak cash flows make further industry consolidation unworkable." For their part, the airlines are doing what they can. Thousands of jobs are on the chopping block, including a round of pilot layoffs at American -- hundreds of flights have been grounded, and there's that controversial "pay for your first bag" policy. But airline execs could see some unexpected relief. A two-day slide in oil has sent prices tumbling by more than $10 - a welcomed sign for an industry expected to lose some $10 billion this year. And to weary travelers hit by higher ticket prices and new fees. Conway Gittens, Reuters.