NEWS RELEASE
WASHINGTON, Jan. 9, 2007 – The Air Transport Association of America (ATA), the industry trade organization of the leading U.S. airlines, is projecting an aggregate net profit of approximately $4 billion for passenger and cargo airlines in 2007,* according to its annual economic outlook, released today.
ATA estimates that the airline industry will report 2006 earnings ranging from $2 billion to $3 billion. A profitable 2006-2007 would be the first back-to-back period of profitability since 1999-2000.
“The outlook for 2007 is the most promising in years, thanks to a healthy revenue environment and the realization of extensive cost-reduction efforts,” said ATA Chief Economist John Heimlich. “The real challenge, however, will be to achieve meaningful and sustainable profits and to improve credit ratings to the point where airlines can weather normal economic turbulence while simultaneously investing in their future.”
The report states that sustained financial health would help airlines enhance the customer experience, acquire new aircraft, refurbish facilities, retain talented employees and promote economic stability, but events beyond airlines’ control could easily push them off course.
View the ATA economic outlook for 2007, related Questions and Answers, and facts and figures.
*Financial estimates are based on foreseeable macroeconomic conditions and exclude restructuring/reorganization charges and gains.
ATA airline members transport more than 90 percent of all U.S. airline passenger and cargo traffic.
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