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News > Companies
US Airways sees 3Q loss
August 10, 2001: 9:30 a.m. ET

Sixth-largest U.S. carrier cites slump in business travel, sets $405M charge
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NEW YORK (CNNfn) - US Airways said Friday it expects a $160 million loss in the third quarter, excluding items, due to declining business travel revenue and will take a $405 million charge related to the write-down of aging aircraft.

The figure equals a loss of $2.39 a share excluding items. Analysts surveyed by earnings tracker First Call had forecast the nation's sixth-largest airline to post a loss of $1.16 a share before items.

However, a First Call spokesman cautioned Friday that US Airways (U: Research, Estimates) did not provide enough details to determine whether its revised guidance is comparable to Wall Street forecasts.

The company, which said it continued to experience weakness in business travel due to the slumping economy and declining consumer confidence, also expects a $405 million pre-tax charge in the third quarter related to the write down its fleet of Fokker 100, Boeing 737-200, and MD-80 aircraft and certain related assets in accordance with federal accounting principles.

The news closely follows US Airways' decision to terminate negotiations July 27 on a takeover by United Airlines after it became clear that U.S. regulators would oppose the deal.

A little-known holding company called Global Airlines Group has since made two bids for US Airways, which it has flatly rejected. Meanwhile, the carrier is awaiting a response from its pilots union on whether pilots will support efforts to substantially expand its fleet of regional jets.

US Airways shares ended 18 cents higher at $18.28 Thursday. graphic





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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.