The airline industry serves not just as an economic engine for states, cities and regions, but as a cog in the essential network of transportation within the United States. Yet the industry finds itself in a very difficult period. With the new focus on homeland security in the United States, exacerbated by war, the terrorist attacks of 2001, a downturn in the economy, and anomalies such as the SARS virus, the airline industry has found itself in a state of turmoil, loss and great trepidation. With the industry especially important to its birthplace, the Southern region, this report highlights the contributions of carriers to local and regional economies and the challenges that face them in Southern states.