News Release

CHAPEL HILL -- North Carolina’s air transportation industry is rebounding faster than the rest of the nation since the Sept. 11, 2001, terrorist attacks, as indicated by the U.S. Bureau of Transportation Statistics (BTS).

The new data show that passenger traffic statewide grew about 5.5 percent from 2003 to 2004, compared with the national average of 3.4 percent.

"There is no doubt that air travel is strongly rebounding and air cargo even faster," said Dr. John D. Kasarda, director of the University of North Carolina at Chapel Hill’s Kenan Institute of Private Enterprise and its Center for Air Commerce.

"Passenger and cargo growth is being led by continuing reduction in air fares and the broader economic recovery."

US Airways and FedEx continue to lead in N.C. passenger and freight traffic, respectively, according to BTS figures. In 2004, US Airways (largely because of its Charlotte hub) moved 19 million passengers through the state’s airports, more than 50 percent of the state’s passenger traffic. Meanwhile, FedEx carried about 325 million tons of the state’s freight, or more than 40 percent.

The United States’ air transportation industry lost more than 100,000 jobs after Sept. 11, 2001. More than 6,000 N.C. workers are among those displaced by these industry cuts, according to the most recent figures from the U.S. Department of Labor’s Bureau of Labor Statistics.

Airports nationwide had experienced a big drop-off in passengers in 2001 and 2002. Cargo traffic stabilized and rebounded quicker than passenger traffic. But now passenger traffic is returning to pre-Sept. 11 levels in North Carolina’s major airports – and the higher numbers should translate to jobs for North Carolinians, Kasarda said. Recent months have hinted at a job rebound in the industry at both the national and state level, he added.

"And these are generally well-paying jobs," he said. "Salaries for air transport jobs in North Carolina average about $46,000 per year. That’s $13,000 a year more than the average annual pay for all industries in the state," Kasarda said.

The Center for Air Commerce, which monitors aviation industry trends, pointed to two big market events currently happening in the N.C. air transport industry: FedEx plans to open its fifth national hub in Greensboro. Meanwhile, US Airways is plagued by bankruptcy and restructuring challenges.

US Airways is North Carolina’s 10th largest employer and has made strides in securing financing and trimming labor costs. High fuel costs and lower fares have offset labor cuts, Kasarda said. The company lost more than $600 million in 2004, according to filings at the U.S. Securities and Exchange Commission.

FedEx state employment levels and freight volumes will increase significantly when its Greensboro hub opens in 2008. The facility is expected to eventually employ 1,500 people. More interestingly, it will be a draw for time-sensitive new industry to the state, Kasarda said.

"The air cargo industry often plays second fiddle to the passenger industry. But studies have shown the cargo industry has stronger ripple effects throughout the entire economy – often producing far more jobs than passenger service per flight," Kasarda said. "Overall, the industry outlook for passenger and air cargo growth is excellent. Yet, market entries and exits can have a big effect on individual airport revenues, regional jobs and, ultimately, consumers."

The Center for Air Commerce is based at UNC’s Kenan-Flagler Business School and specializes in aviation industry education and research. Areas of expertise include airport city planning, air logistics, market research and competitive intelligence in the aviation industry.

For more information on the center, visit http://www.kenan-flagler.unc.edu/KI/airCommerce.  For more information on the newly released national statistics, visit http://www.bts.gov/.

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UNC Kenan-Flagler contacts: Kim Weaver Spurr, (919) 962-8951 or spurrk@unc.edu; or Jonathan Green, Center for Air Commerce, (919) 962-8840 or jonathan_green@unc.edu