USAIR HAS CUT its first quarter 1995 net loss to $97 million, compared with a loss of $197 million in the same period of 1994. Revenue rose by nearly 5%, to $1.76 billion. Its operating loss was $42 million against $140 million in the 1994 quarter.
"Even accounting for significantly better winter weather compared to last year, traffic trends for 1995 are on an upward curve," says Seth Schofield, USAir's chairman and chief executive. Passenger revenues for March were the highest in the company's history, he says.
The carrier ended the first quarter with cash in excess of $400 million and Schofield says that he expects to end the year with at least that amount "barring unforeseen circumstances."
The financial news was encouraging for an airline whose auditor recently expressed "substantial doubt" about its ability to survive without labour concessions.
USAir has been awash in losses for the last five years totaling $2.5 billion over the period, including $684 million in 1994. It is cutting $500 million in spending this year and is attempting to win $500 million in annual labour concessions and has won a tentative agreement with company pilots.
Source: Flight International
