US Airways Loss Twice as Much as Expected
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US Airways Group Inc., piling on a month of bad news beginning with its collapsed merger with United Airlines parent UAL Corp., said it will post a loss of more than $160 million for its third quarter because of drooping business travel.
The loss would be twice as much as Wall Street expected.
The Arlington,Va.-based company said it will take a pretax charge of about $405 million in the quarter to write down the value of its fleet of Fokker 100, Boeing 737-200 and MD-80 aircraft and other assets. US Airways warned last month that the softening economy and companies’ spending cuts had hurt its results.
Company executives will meet with analysts Wednesday to discuss future business strategy.
Analysts were expecting a loss of $1.16 a share, according to Thomson Financial/First Call. Based on the number of US Airways shares outstanding, a $160-million loss in the quarter would be $2.39 a share.
US Airways shares lost 3 cents to close at $18.25 on the New York Stock Exchange.
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