Airlines are facing the possible loss of a federal program that — since the 9/11 attacks — has provided carriers with less costly insurance than what they had been getting from insurance companies. The insurers, finding the risks too high, virtually abandoned the commercial aviation industry after hijacked passenger planes were rammed into the World Trade Center and the Pentagon.

Under the Federal Aviation Administration's War Risk Insurance Program, started a few weeks after 9/11, about 70 large and small airlines have been paying a total of about $150 million a year in premiums for coverage against damage, death or injury caused by terrorists, industry sources said Thursday.

Earlier this week, the Department of Transportation extended the program until Dec. 31. But after that, its future is uncertain, said airline and other experts.

A spokesman for the department said no decision has been made about whether to extend the insurance program further, but the matter is being evaluated. The decision will depend in part on the availability of commercial insurance, the spokesman said.

"It's very definite that if the airlines are forced to pay higher premiums, the cost is going to be reflected in higher fares to passengers," said Shalem Massey, an attorney with the law firm of Bryan Cave in Irvine, Calif., who specializes in the aviation industry.

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