ARLINGTON, United States (AFP) - US Airways, operating in bankruptcy, announced it had plunged deeper into losses in the third quarter, squeezed by high fuel prices and low-cost competitors.
Losses more than doubled to 232 million dollars in the three months to September 30 from a year-earlier loss of 90 million dollars. Per share, losses grew to 4.22 dollars from 1.69 dollars.
Sales edged up 1.6 percent to 1.80 billion dollars.
Cash reserves sank.
"I am disappointed that we have reported yet another quarterly loss, however, I am confident that we are charting a new course with a well-crafted plan that, if fully implemented, can return US Airways to profitability," US Airways president and chief executive Bruce Lakefield said in a statement.
"This is a strong franchise with hard-working employees who have the will to succeed and, given the right cost structure, we will be successful."
Lost revenue and operational costs from the hurricanes was estimated to have cost the company at least 20 million dollars.
The cost of aviation fuel per gallon, including taxes, for the third quarter 2004 was 111.5 cents, up 29 percent from the same period in 2003. Fuel hedging benefits, which partially mitigated the dramatic increase in fuel price, improved results by 38 million dollars, or 16.4 cents per gallon.
"Despite the company`s best efforts to mitigate the impact, the sustained high price of fuel and the lack of any relief from record prices continue to have a negative impact on cash flow," the airline said.
As of September 30, 2004, US Airways total cash position, including restricted cash, had dwindled to 1.49 billion dollars, including 757 million dollars available for use subject to some limitations.
Three months earlier, it had a total 1.73 billion dollars, including 975 million dollars unrestricted.
Lakefield said the carrier was trying to conserve cash and would take "appropriate action as necessary" to comply its with financing agreements.
US Airways Group filed September 12 for a Chapter 11 bankruptcy, under which it can reorganize and try to repay creditors while still staying in business under the control of the bankruptcy court.
Lakefield welcomed ratification of a new labor agreement by the carrier`s pilots and by workers represented by the Transport Workers Union. Negotiations were still on with other unions.
Marketing chief Ben Baldanza said the airline was trying to reform for a new climate of "high fuel prices, continued growth of low-fare competition, diluted yields and more consumer dependency on the Internet."
The cost per available seat mile, excluding fuel and unusual items, rose 2.3 percent to 9.74 cents, the carrier said, blaming hurricanes, summer storms and a computer malfunction in August that delayed and cancelled flights.
10/28/2004 - 15:07 GMT - AFP