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AIR TRANSPORT WORLD MAGAZINE PUBLISHES ANNUAL FORECAST

 WASHINGTON, Dec. 30 /PRNewswire/ -- The world's airlines, battered by three years of massive losses, will see traffic growth and a return to profitability on an operating level in 1993. However, heavy interest charges will cause the industry to lose money for the fourth year in a row, reported "Air Transport World" magazine ("ATW") in its annual forecast of the world airline industry, appearing in the January 1993 issue.
 Nevertheless, the industry is on the road to recovery and 1994 could be a "barn-burner year," the magazine reported.
 "ATW" predicts that the world's airlines will generate nearly $234 billion in revenues in 1993, up 8.5 percent over 1992, while operating expenses are forecast to rise only 7.8 percent to $231.4 billion, leading to an operating profit of $2.5 billion. The airlines will carry 1.2 billion passengers in the coming year, a 3.5 percent increase over 1992.
 But the industry is staggering under a huge debt burden, brought on by the need to acquire hundreds of new aircraft, and the high interest charges resulting will lead to a $500 million loss for '93. "ATW" pointed out that this loss still represents a significant improvement over the previous three years, during which the industry lost an estimated $10.8 billion.
 Most of the industry's profits in 1993 will be generated by airlines operating in the Asia/Pacific Region, the fastest growing market for air transport. A few European airlines also will be profitable, but the U.S. airline industry and most European airlines will bleed red ink, as will airlines in most other regions. A shakeout will continue to occur in the U.S., as financially weak carriers disappear or are acquired by healthier airlines.
 In its annual forecast, "ATW" noted that airlines today are operating against a backdrop of fundamental change in the air transport industry. The creation of a single market among nations of the European Community; partial deregulation of the airline industry of Europe; and the trend towards mergers, acquisitions and partnerships between airlines are all factors that will force significant change on the industry in the coming year. "One certainty is that by year-end, the airline industry will look much different," the magazine predicted.
 "Air Transport World" magazine is the leading monthly trade publication covering the airline and commercial air transport industry. It is published by Penton Publishing, Inc., headquartered in Cleveland.
 -0- 12/30/92
 /CONTACT: Danna K. Henderson, contributing editor of Air Transport World, 505-255-8265/


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