Airline Industry Heads For Record Profits

The airline industry seems headed for a year of record profits.

“I am expecting net profits in 1997 of about $4 billion,” David Swierenga, chief economist for the Air Transport Association, said Friday.

Falling fuel prices and the lack of a federal airline ticket tax in the first two months of the year are major factors in the healthy bottom line, according to Swierenga.

In addition, he said, “cargo is an exceptionally bright spot” with shipments up 10.9 percent throughout the industry.

But, he cautioned: “When we look at 1998 things get a little bit more tough.” He said that if there are indications of inflation the Federal Reserve Board would probably raise interest rates, slowing the economy and choking off growth in airline travel.

Still, Swierenga expects next year to be financially strong, with an industrywide profit of $3.3 billion to $3.5 billion.