The performance of the commercial airline industry in 2007 has demonstrated that even in comparatively good times, the nation's air carriers operate in an extremely demanding, often unpredictable environment. The good news is that as of Nov. 1, ATA projects that U.S. airlines are expected to carry approximately 760 million passengers for full-year 2007, a 2% increase over the same period in 2006. ATA also estimates that U.S. passenger and cargo airlines will post an aggregate net profit of approximately $5 billion in 2007, even with oil prices pushing the "century" mark.

The airlines experienced challenges with both Mother Nature and Government. This year, airlines suffered operational delays not seen since the beginning of this decade. Weather and an antiquated air traffic control system, coupled with unprecedented growth of aircraft using our national airspace system, were the chief culprits. Extraordinary, severe weather contributed to passengers being delayed more than at any time since data has been collected. Weather and the ATC system, two factors beyond airlines' control, continue to greatly affect on-time performance and flight completion. According to government data, these two factors continue to account for the majority of airspace delays. Airlines responded by adjusting schedules and by reviewing and updating their operational contingency plans, including the addition of new customer-service enhancements.

More importantly, the airlines continue to push for long-term solutions through a transformation of the ATC system to a 21st century satellite-based system that will enable the carriers to meet burgeoning demand. This requires the political will to enact a forward-looking and fair Federal Aviation Administration reauthorization bill. ATA and its members worked with members of Congress, airline customers, other stakeholders and the public to communicate the urgent need for airspace modernization and fair funding by all users of the system. A modernized air traffic management system will reduce delays, while improving environmental performance and creating an infrastructure that will accommodate future growth, spurring economic expansion.

A variety of reauthorization proposals were put forward with a strong effort by both the administration and the Senate Commerce Committee to really come to grips with both system modernization and funding reform. To date, however, reform legislation has not been enacted. As a result, before the Sept. 30 expiration of the Airport and Airway Trust Fund, the principal source of FAA funding, Congress extended the FAA tax and program authorizations through Dec. 14 as part of a federal government continuing resolution.

ATA continues to call on members of Congress to pass a bill that would provide a fair and dependable funding stream and to provide the game plan for rapid and effective system modernization.