Air transport industry

Leveling of capacity helped US airline traffic rise 2% in 1995 and continue at a 6% rate during the first four months of 1996. Airlines in 1995 and the 1st qtr of 1996 also showed profits for the first time since 1989. Airline economics are also being impacted by tax changes, lower commissions for travel agents, and electronic ticketing. Airline profits are expected to be higher in 1996 and 1997, and several stocks are good investments in 1996.