Don't ask me why so many people hold airline stocks. Of course there is money to be made in trading, but I am not a trader. And yes, historically Southwest Airlines (NYSE: LUV) has been a good long term hold, but it is still a lousy business. Southwest reported higher profits beating analysts estimates (who cares) by a penny. The stock is still trading down 30 cents as I write to $14.26 from yesterday's close of $14.56.

I do not see them sharing the LUV with its paltry dividend, equally poor ROE of 7.6 and too much debt. Airlines are capital intensive and highly regulated. They are very susceptible to the weather, politics, fuel prices, war and terrorism threats, strikes and competition.

Continental Airlines (NYSE: CAL) reported a 2% increase in profits today and its stock is down too. So what if airlines are reporting increased profits, they all suffer from the same problems and if they manage to squeeze a little profit out of the company lately, it's because they are coming off such lows that the comparisons should be easy to beat. Also there are so many complexities to the airline business that the financial statements are works of art understood by only those with an intimate working knowledge of the business. Continental pays no dividend and has mammoth 5 to 1 debt: LT Debt-to-Common Equity (LFY) = 501.79.

Fuel costs are on the rise and on-time rates are at record lows -- it's no wonder that earnings are a delicate topic at the major airlines. Here's a quick summary of the lackluster results from AMR Corp. (NYSE: AMR), Delta Air Lines (NYSE: DAL), and Southwest Airlines (NYSE: LUV):

• AMR, the parent of American Airlines, reported second-quarter net income of $317 million, or $1.08 per share, up 9% from year-ago results. Revenue was down 1.6% to $5.88 billion. Both figures were below analysts' earnings and revenue estimates of $1.19 per share and $5.98 billion, respectively. According to MarketWatch, AMR cited "severe weather disruptions," calling the quarter's meteorological phenomenon "an enormous obstacle." Looking forward, AMR expects capacity to drop 2.4% on a year-over-year basis in the third quarter.

• DAL announced quarterly results for the first time since emerging from bankruptcy at the end of April. The airline netted a profit of $1.8 billion, or $4.49 per share. Excluding items, Delta would have banked 70 cents per share, topping Street estimates. Sales rose 5.5% during the period to $5 billion, also topping Thomson Financial's composite target.

• Finally, LUV said its net profit was off 16.5% at $278 million, or 36 cents per share (or 25 cents per share excluding items). Total operating revenue was up 5.5% to $2.58 billion. The "low-cost" carrier expects its fuel cost to rise to $1.70 a gallon in the current third quarter, up from $1.62 in the second. Its costs excluding fuel are also expected in increase above year-ago figures.

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.