Pumping of liquids using two-phase flow has been examined experimentally in small air-lift pumps with 12—19 mm bore plexiglass tubes. An air injection system was devised to create and maintain ‘perfect’ slug flow in the vertical riser tube. An equation has been derived, based on momentum conservation considerations, which correlates well with the measurements obtained. Slip variation, or liuid holdup, between the two phases and the formation of the ‘entrance’ section part of the pump (suction pipe) were taken into consideration. Unlike its predecessors, this equation predicts the reversal in the pump performance curve observed experimentally.