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US Government reveals war in Iraq may seriously hurt aviation industry.

AIRLINE INDUSTRY INFORMATION-(C)1997-2003 M2 COMMUNICATIONS LTD

The US government has revealed that any conflict in Iraq could seriously hurt prospects for near term US airline industry recovery.

An assessment by the Federal Aviation Administration (FAA) - which was included

in a report released at its annual industry forecast conference - predicted more problems for airlines if costs continue their sharp climb against weak revenues. The agency fears that a war with Iraq will also pose a risk to meeting its forecasted recovery targets.

Experts are also concerned about US Airways and United Airlines, who are both in bankruptcy, and American Airlines, which may seek Chapter 11 protection later this year, reported Reuters.

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