July 25 (Reuters) - American Airlines ( AAL ) cut its

annual profit forecast on Thursday as uneven demand trends and

overcapacity in certain markets dampened the carrier's pricing

power.

A rush among carriers to cash in on strong summer travel

demand has forced airlines to offer tickets at a discount to

fill their planes.

Analysts have flagged concerns with American's aggressive

discounting this summer, while the carrier has also distanced

itself from high-margin corporate travel customers in an attempt

to grow its share in smaller markets.

The Fort Worth, Texas-based carrier had trimmed its

second-quarter profit forecast in May, citing pressure on its

pricing power.

The company now expects an adjusted profit between $0.70 per

share and $1.30 per share, compared with its previous forecast

of $2.25 to $3.25 per share.

"American's network leaves it more exposed to the markets

currently most oversupplied and less able to offset the higher

cost environment," TD Cowen analyst Thomas Fitzgerald said in a

note earlier this month.

American Airlines ( AAL ) reported a profit of $717 million, or

$1.01 per share, compared with $1.34 billion, or $1.88 per

share, a year earlier.