American is forecasting that fuel prices during the fourth quarter will be about 20 percent more than a year ago.

"High fuel prices are a big concern for the fourth quarter," said Tom Horton, American's chief financial officer, in a conference call with analysts last week. "Oil has been just extraordinary for this industry."

The good news, Hamlin said, is that the problem isn't new. Fuel prices have been steadily rising for several years, and the industry weathered spikes in cost after the beginning of the Iraq war and Hurricane Katrina.

Carriers have adapted by entering into fuel hedging contracts, making their airplanes more fuel efficient, cutting back on flights and raising fares.

"The industry made money (during the third quarter) at $80 per barrel," he said. "So they've learned a lot over the last few years."

American has 40 percent of its fuel purchases for the fourth quarter capped at $69 per barrel of crude oil prices. Southwest Airlines, based in Dallas, has 90 percent of its fuel locked at $51 per barrel for the quarter.

Southwest has long been the industry leader in fuel hedges, which is one reason it has remained profitable since Sept. 11, 2001 while its rivals lost billions.