Saying U.S. airlines have made measurable progress despite the recession, the Air Transport Association indicated any further progress requires the deployment of a modern air traffic management system which will yield higher productivity, greater efficiency and customer service, better environmental performance and safety improvements.

The association revealed in its 2009 Economics Report issued yesterday afternoon that an additional investment of about $6 billion in "NowGen" between now and 2013 would go a long way toward enhancing safety, creating jobs, improving environmental performance, reducing long-term government expenses, increasing small community access and improving the economy.

Although the nation's 150 passenger and cargo airlines posted operating revenues which grew a healthy $11 billion in 2008, said ATA, operating expenses surged $24 billion, swinging the industry's operating income into the red. The industries profit margin is a dismal -5.1%, down from a just-as-dismal 2.9%, adjusted for one-time charges and gains. Indeed, the profit margin has consistently been one of the industry’s greatest problems since it is nothing that would stir lenders or investors.

Cumulative losses for U.S. cargo and passenger airlines reached $55 billion between 2001 and 2008, forcing dramatic downsizing and the loss of more than 150,000 jobs. The report details last year’s trends, operational statistics and financial results as well as the evolutionary changes that continue this year.

"As America invests in and plans for its future, air transportation must be recognized as a national priority and a driver of economic activity," said President and CEO James C. May. "We are calling on all Americans and, in particular, our colleagues in government, to join us now in using the forces of evolution to deliver a new vision for moving America." He also called for the halt to "all, unmonitored, destructive energy price speculation that has done so much harm to the U.S. and world economies,"

The report also revealed:
• Annually, commercial aviation helps drive $1.1 trillion in U.S. economic activity and more than 10 million U.S. jobs. On a daily basis, U.S. airlines operate nearly 28,000 flights in 80 countries, using more than 6,000 aircraft to carry an average of two million passengers and 50,000 tons of cargo.

• Cargo transport accounted for 16 percent of total industry revenues and generated $5.3 billion more sales than in 2008, reaching an all-time high of $30 billion.

• Carried 741.4 million passengers last year, down 3.7 percent from 2007;

• Flew 811.4 billion revenue passenger miles, down 2.2 percent;

• Flew 28.4 million cargo revenue ton miles, down 4 percent;

• Had a passenger yield of 13.75 cents per revenue mile, up 5.9 percent;

• Had a cargo yield of $1.05 per revenue mile, up 26.8 percent;

• Had a net profit margin of -12.7 percent, down from 4.4 percent;

• Given the contraction in seating capacity, 2008 marked just the fifth time since domestic air service was deregulated in 1978 that the industry saw both domestic and international yields outpace inflation.

• The average price paid for a gallon of jet fuel jumped 96 cents in 2008 -- the largest annual increase in history -- to an all-time high of $3.07. Fuel prices contributed to the industry's net loss of $23.6 billion in 2008, down from $7.7 billion of profit in 2007, with net losses adjusted for one-time charges and gains of $9.5 billion, down from profit of $5 billion.

• Flying operations, which constituted 42 percent of industry costs, increased 27 percent on a $16 billion year-over-year spike in fuel expenses to $58 billion in 2008.

• U.S. airlines have improved their fuel efficiency by more than 120 percent over the past three decades.

• More direct routings enabled by next-generation air traffic management solutions could increase system fuel efficiency by as much as 10 to 15 percent.

• ATA airlines are good environmental stewards, and are on track to meet or exceed their commitment to improving their fuel efficiency another 30 percent between 2005 and 2025, which will result in CO2 savings equivalent to taking 13 million cars off the road each year during that period.