US Airways Slips Back

US Airways Slips Back

Copyright 2004, Traffic World, Inc.

US Airways reported a $98 million loss in the fourth quarter, an improvement over the $794 million lost at end of 2002 as it struggled through Chapter 11 bankruptcy protection but still enough to have analysts questioning the airline''s long-term prospects.

Cargo returns reflected the Arlington, Va.-based carrier''s downsizing, with fourth quarter revenue down 12.5 percent to $32 million and full-year cargo revenue down 6.8 percent from $141 million to $132 million.

US Airways underwent major restructuring during 2003, including cutting flights and switching to smaller planes with less belly capacity. The airline is pressing a strategy to use regional jets that may slim capacity even further.

The company emerged from a seven months under Chapter 11 bankruptcy protection at the end of the first quarter but has struggled financially since.