Jennifer Harrington

<p>The Air Transport Association (ATA) expects U.S. airlines to post a $3.5 to $4.5 billion net profit this year, following back-to-back net profits in 2006 and 2007. The past two years were the first consecutive profitable years since 1999-2000. According to ATA, whose members transport more than 90 percent of all U.S. airline passenger and cargo traffic, ongoing passenger and cargo revenue strength–particularly in the international arena–will help offset a sizeable increase in fuel expenses and a modest increase in nonfuel expenses, enabling the industry to post another profit this year. That would make 2006-2008 the airlines’ first profitability “three-peat” since 1998-2000. ATA noted that in its three best years (1997-1999) the deregulated airline industry earned a net profit margin of only 4.4 percent when crude oil averaged only $18 per barrel. “A decade later, with oil likely to average $80 per barrel, we are projecting a third consecutive year of net profits,” ATA said.</p>


Airline Industry Expects Profits

The Air Transport Association (ATA) expects U.S.

2024 Corporate Aviation Leadership Summit

AIN Products

SUBSCRIPTIONS

RESOURCES

ABOUT AIN