Air transport industry

Airline traffic growth is expected to remain solid for 1998 and 1999 along with the US economy, although it will be less than the 5% of 1997, and airline capacity is forecast to grow more slowly than traffic. Airlines are also creating international joint ventures in order to take advantage of the expected increase in international travel. These shares are timely and have outperformed the market in 1997 and 1998, but continue to be cyclical.