The three-dimensional problem of transonic flow about lifting wing-body configurations is reduced to a two-variable computational problem with the method of matched asymptotic expansions. The computational problem is solved with the method of relaxation. The method accounts for leading-edge separation, the presence of shock waves, and the presence of solid, slotted, or porous tunnel walls. The Mach number range of the method extends from zero to the supersonic value at which the wing leading edge becomes sonic. A modified form of the transonic area rule which accounts for the effect of lift is developed. This effect is explained from simple physical considerations.