The losses keep piling up for airlines, as three of the nation's biggest carriers on Tuesday said high fuel costs overwhelmed higher revenue in the quarter that ended June 30.

UAL Corp's United Airlines posted the biggest loss of US$2.73 billion or US$21.74 per share. United also expanded the number of jobs it plans to eliminate by the end of the year from 3,800 to 7,000.

Accounting charge

United's loss included an accounting charge of US$2.3 billion, and chief executive Glenn Tilton blamed the "unrelenting price of oil" for the weaker profit picture despite a three per cent increase in revenue.

US Airways rolled up a US$567 million loss or US$6.16 per share.

Revenue rose three per cent, but CEO Doug Parker also pointed to soaring fuel costs for most of his company's financial woes.

US Airways plans to cut 1,700 jobs and add more passenger fees, which the carrier hopes will bring in US$400 million to US$500 million a year.

JetBlue Airways Corp posted the smallest loss - $7 million or three cents a share, as revenue climbed 18 per cent. JetBlue will shut down its operations in Ontario, California because of rising costs.

"The dramatic rise in fuel prices has forced us to make the difficult decision to discontinue operations in Ontario," said CEO Dave Barger. "We need to make appropriate network adjustments to better match our capacity with customer demand."

UPS Inc, the world's largest shipping carrier, saw its profit fall as fuel costs ate into earnings and customers shied away from premium services in the nation's weaker economic environment.

Despite the weak earnings news, shares of airlines and shippers rose in morning trading as oil fell $4.22 a barrel to US$126.82 on the New York Mercantile Exchange.