
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, March 28, 1991                   TAG: 9103280147
SECTION: BUSINESS                    PAGE: B-9   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Short

SKINNER: WORST IS OVER FOR AIRLINE INDUSTRY

Despite the financial plight of some carriers and the outright failure of others, Transportation Secretary Samuel Skinner says traffic is up, costs are down and "the worst is over" for the U.S. airline industry.

But he acknowledged at a news conference Tuesday that some airlines with serious financial problems still may fail this year.

The combination of soaring jet fuel prices, the fear of terrorism caused by the Persian Gulf War and the impact of recession left U.S. airlines reeling.

Jet fuel prices, which rose from a low of 60 cents a gallon immediately before Iraq's invasion of Kuwait last August to a high of $1.40 in mid-October, have fallen back to pre-invasion levels.

Optimism also is heightened by the fact that "the Persian Gulf War is over and people have begun to fly again," Skinner said.

He said the major U.S. airlines report the volume of air travelers increasing and they are more optimistic about their spring and summer travel seasons.

Skinner said he also believes the nation will rebound from the recession in the spring or summer, thus increasing airline business.

"I do not believe the competitive environment we have today will be significantly altered if a couple of airlines go out of business," he said.

by CNB