1. www.airlines.org dswierenga@airlines.org

2. Air Transport Association May 21,2002 NET INCOME U.S. Scheduled Airlines 80818283848586878889909192939495969798990001 0 1 2 3 4 5 -2 -3 -4 -5 -6 -7 -8 $ Billions EXPECTED 9/11 IMPACT

3. Air Transport Association May 21,2002 TRAFFIC GROWTH Percent Change in Revenue Passenger Miles J 1999FMAMJJASONDJ 2000FMAMJJASONDJ 2001FMAMJJASOND 0 5 10 15 -5 International Domestic Y2K - 6.5 Million Passengers

4. Air Transport Association May 21,2002 TRAFFIC GROWTH Percent Change in Revenue Passenger Miles Jan 1999FMAMJJASONDJan 2000FMAMJJASONDJan 2001FMAMJJASONDJan 2002FMA 0 10 -10 -20 -30 -40 International Domestic

5. Air Transport Association May 21,2002

6. Air Transport Association May 21,2002 BLOCK HOURS PER DAY PER AIRCRAFT Passenger Service 91 192 193 194 195 196 197 198 199 1 00 1 01 1 8.0 8.5 9.0 9.5 10.0 10.5 - 15%

7. Air Transport Association May 21,2002

8. Air Transport Association May 21,2002

9. Air Transport Association May 21,2002 Jet Airplanes vs. Capacity (ASMs) U.S. Airlines Source: World Jet Inventory 19911992199319941995199619972001 4,000 4,500 5,000 5,500 6,000 6,500 7,000 700 750 800 850 900 950 1000 Thousands 200019991998 Aircraft ASMs AIRPLANESASMs

10. Air Transport Association May 21,2002 AIRCRAFT ORDERS AND OPTIONS ATA U.S. Members Dec 90Jun 91Dec 91Jun 92Dec 92Jun 93Dec 93Jun 94Dec 94Jun 95Dec 95Jun 96Dec 96Jun 97Dec 97Jun 98Dec 98Jun 99Dec 99Jun 00Dec 00Jun 01Dec 01 Options Firm Orders 2,748 1,937

11. Air Transport Association May 21,2002 EXPECTED DELIVERY DATES ATA Members 200020012002200320042005200620072008 Firm Orders Options

12. Air Transport Association May 21,2002 U.S. AIRLINE 2001 JET FLEET By Year of Delivery to Original Owner <65 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 0 100 200 300 400 500 600 700 5,538 Aircraft (excl Regional Jets) Source: Jet Information Services 6,507 Aircraft

13. Air Transport Association May 21,2002 AVERAGE AGE OF FLEET 19909192939495969798990001 12.0 12.5 13.0 13.5 14.0 14.5 15.0 Source: The Airline Monitor

14. Air Transport Association May 21,2002 FUEL PRODUCTIVITY Passenger Miles per Gallon 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 10 15 20 25 30 35 40 45

15. Air Transport Association May 21,2002 JET FUEL PRICE TRENDS Excludes taxes Jan 1996 Apr Jul Oct Jan 1997 Apr Jul Oct Jan 1998 Apr Jul Oct Jan 1999 Apr Jul Oct Jan 2000 Apr Jul Oct Jan 2001 Apr Jul Oct Jan 2002 Apr Jul Oct 30 45 60 75 90 105 Cents per Gallon 10 15 20 25 30 35 $ per Barrel WTI (Right Scale) JET FUEL (Left Scale) Forecast

16. Air Transport Association May 21,2002 LABOR COSTS PER EMPLOYEE Wages and Benefits 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002e 35 40 45 50 55 60 65 70 75 $ Thousands $42.4 1986-2001 Compensation Annual Growth Rate +3.6% CPI Annual Growth Rate +3.2% 68.6 71.9 75.5 64.8

17. Air Transport Association May 21,2002 PRICE TRENDS System Revenue per Passenger Mile JanFebMarAprMayJunJulAugSepOctNovDec 1,0.5 1,1.0 1,1.5 1,2.0 1,2.5 1,3.0 1,3.5 1,4.0 Cents 20022001 2000 2001 - 7.6% 2000 + 4.4% 1999 - 1.3% 2000 2001 $5 Bill. 2002

18. Air Transport Association May 21,2002 REVENUE TRENDS Business vs. Personal/Pleasure Preliminary Data JFMAMJJASONDJF 0 10 -10 -20 -30 -40 -50 -60 BusinessPersonal Percent 2001 2002

19. Air Transport Association May 21,2002 BUSINESS VS. PERSONAL / PLEASURE 2001 Revenue & Traffic Shares 2001 Revenue Traffic Preliminary Data Business

20. OUTLOOK

21. Air Transport Association May 21,2002 CURRENT TRAFFIC TRENDS COMPARED TO GULF WAR 0 10 20 -10 -20 -30 -40 Percent Change 20011990/91 System1990/91 International Gulf War Intl Gulf War System FEB ‘91 SEP ‘01

22. Air Transport Association May 21,2002 TRAFFIC GROWTH COMPARED TO GDP And Forecast for 2001 and 2002 1993 11994 11995 11996 11997 11998 1 1999 12000 12001 12002 1 0 5 -5 -10 -15 GDP Percent 0 10 -10 -20 -30 Traffic Percent

23. Air Transport Association May 21,2002 NET PROFIT MARGIN U.S. INDUSTRY VS. AIRLINES 8081828384858687888990919293949596979899000102e 0 5 -5 AIRLINES U.S. INDUSTRY Percent

24. Air Transport Association May 21,2002 CASH FLOW Four Quarter Moving Total 0 2 4 6 8 10 12 14 -2 $ Billions Majors and Nationals FORECAST 02/402/302/202/101/401/301/201/100/400/300/200/199/499/399/299/198/498/398/298/197/497/397/297/196/496/396/296/195/495/395/295/194/494/394/294/193/493/393/293/192/492/392/292/191/491/391/291/190/490/390/290/189/489/389/289/188/488/388/288/187/487/387/287/186/486/386/286/185/485/385/285/184/484/384/284/183/483/383/283/182/482/382/282/181/481/381/281/180/4

25. Air Transport Association May 21,2002 AIRLINE BALANCE SHEETS Debt as a Percent of Total Capital 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001p 2002e 20 30 40 50 60 70 Percent AIRLINES U.S. INDUSTRY

26. www.airlines.org dswierenga@airlines.org