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I read in a FAQ that these abilities reduce the hatching time of eggs by half. If I have two pokemon in my team, one with Flame body and one with Magma Armor, will it reduce the time even less?
Unfortunately, they don't "stack." Whether you have one or five in your party with the Egg, it'll reduce it by the same number of steps (actually 1/3, not 1/2 as thought for a while).
Remember that these abilities only have this effect in Emerald.
To review the abilities do double each other they just do it once. Yes, it does decrease the number of steps it takes to hatch an egg in Emerald only.
Next time ask questions like these in Simple Questions. The link in convienantly in my sig and found in the group of Stickies near the "Simple Questions, use it!" thread created by yours truly.