U.S. Airways’ losses widen in fourth quarter
Bankrupt U.S. Airways saw its net loss widen to $236 million in the fourth quarter from $98 million a year ago, as higher fuel costs and intense competition in its passenger business continued to hurt its bottom line.
The airline’s revenue decreased from $1.8 billion to $1.7 billion in the latest quarter, although revenue from cargo was steady at $33 million.
Facing the threat of liquidation, Arlington, Va.-based U.S. Airways said it has secured cost savings from its employees worth $1.1 billion a year.
For 2004, the airline reported a net loss of $611 million compared to a profit of $1.5 billion in 2003. Group revenue for the year rose 4 percent to $7.2 billion, with cargo revenue remaining unchanged at $132 million.
U.S. Airways filed again for bankruptcy protection in September 2004. It said its cash collateral agreement has been extended through June 30.
The last major U.S. combination airline to report its fourth-quarter and annual results, U.S. Airways confirmed the trend that 2004 was one of the worst years ever for the U.S. airline industry. Delta, Northwest, Continental, United, American and U.S. Airways had combined losses of $9.4 billion last year.
