WRAPUP 4-Airline shares fall on flu scare; cruises rebound

* US leisure and airline stocks end mixed

* IATA says swine flu scare could not come at worse time

* Outbreak could hurt critical summer season bookings

* Some say concerns overblown (Recasts with U.S. shares' close)

By Deepa Seetharaman and Laura MacInnis

NEW YORK/GENEVA, April 28 (Reuters) - Airline shares around the world largely took another hit on Tuesday on fears of steep falls in business and leisure traffic because of the swine flu outbreak.

Among the shares of the U.S. carriers, industry leader Delta Air Lines (DAL.N) fell almost 10 percent and US Airways Group (LCC.N) fell 4 percent.

American parent AMR Corp (AMR.N) and Southwest Airlines (LUV.N) bucked the overall trend and ended a respective 1 percent and 3.9 percent higher, but they were not enough to help the AMEX airlines index .XAL, which ended down 2.6 percent.

Cruise and hotel operators, which took a severe beating on Monday, bounced back, with Carnival Corp (CCL.N)(CCL.L) and Royal Caribbean Cruises Ltd (RCL.N) up 3.9 percent and 3.3 percent, respectively.