Substantial labour savings and other restructuring benefits could not stem the rush of red ink at bankrupt US Airways, which reported a wider first-quarter loss on Friday due to soaring fuel costs. The carrier has lost $427 million since entering bankruptcy in September. Like its struggling rivals, it has been buried under record high fuel prices. US Airways spent $368 million for fuel in the first quarter, nearly 58 percent more than it spent in the same period a year ago.
"We continue to operate under extremely challenging conditions," said Bruce Lakefield, the airline's chief executive.
In addition to fuel, Lakefield cited aggressive competition from low-cost rivals that have pushed fares lower and depressed revenue.
US Airways posted a quarterly net loss of $191 million, or $3.48 per share, compared with a loss of $177 million, or $3.28 per share, for the same period in 2004. The results were not a surprise to experts tracking a company that has been on the ropes for years. Analysts forecast a loss of $4.47 a share, according to Reuters Estimates. Operating revenue for passenger services fell 4.4 percent to $1.44 billion, reflecting tough fare competition.