Carriers keep going by plying in traffic.

• Position: TRANSPORTATION

Oops! They did it again. US Airways emerged from Chapter 11 bankruptcy in March 2003 but filed for it again in September 2004. The high price of fuel, increased competition from discount airlines and high labor costs were too much for the Arlington, Va.-based carrier. Others such as Delta and United are suffering, too, but they don't match US Airways' presence in North Carolina.

It is Charlotte/Douglas International Airport's biggest tenant, making up about 90% of its flights. The airline also is a major presence--and employer--at other airports around the state. Liquidation would mean losing thousands of Tar Heel jobs. Airport Director Jerry Orr says the number of daily flights in and out of the Queen City would plummet. It also would take some of the wind out of smaller airports such as those in Fayetteville and Wilmington.

If it can stay aloft, US Airway plans to make itself more like low-fare carriers such as Dallas-based Southwest Airlines--already a major player at Raleigh-Durham International Airport with 25 daily departures--or Dulles, Va.-based Independence Air, which moved into airports serving Raleigh, Greensboro and Charlotte in 2004. Analysts say discount airlines, which operate in 30% of the domestic market, could expand to 70% by 2010.

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Despite the turmoil, more passengers were using North Carolina airports last year than in 2003. At the three busiest airports in the state--Charlotte/Douglas, Raleigh-Durham and Piedmont Triad International--passenger boardings were up 4% to 9% through October. Regional airports saw growth in passenger traffic, too. Fayetteville Regional Airport reported a 33% increase during the period. Wilmington International set its record for the most passengers in a month in July--breaking the record it set in June. At Asheville Regional Airport, boardings through October were up nearly 20%.

Orr attributes increases in passenger traffic to fares kept low by a glut of planes and carriers. Travelers also seem to have put aside fears of terrorist attacks, which hobbled the industry after Sept. 11, 2001. North Carolina's second-tier airports have added flights, and Asheville Regional Airport Director David Edwards has headed an effort to convince airlines that they can add service there and still make a profit. Results: a nonstop Continental Airlines flight to Houston and nonstop Northwest Airlines flights to Detroit and Minneapolis. Using similar tactics, Wilmington International...