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Aviation News Release
US Airways Made Loss In 2008, Sees Capacity Dip
January 7, 2009
US Airways said on Wednesday it will report a loss for 2008, and forecast lower flight capacity for this year as more recession-hit people stay at home.
The US number 6 airline suffered alongside other carriers with high fuel prices for most of last year and is now grappling with a dip in demand as the global economic slowdown takes its toll.
US Airways did not quantify the loss it expects to report for 2008. Industry analysts expect a loss of USD$1.77 billion, chiefly due to large fuel and hedging related losses in the second and third quarters.
For this year, the airline said domestic mainline capacity will be down by between 8 and 10 percent while total mainline capacity, including international services, will be down 4 percent to 6 percent.
US Airways, like other carriers across the world, has been pulling flights from its schedule to counter volatile fuel prices and a reduction in demand for flights.
© Ascent Pacific 2009
