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The Tempe, Ariz.-based carrier turned a $263 million profit during the same period a year ago.
"Record-high fuel prices continue to be the story for us and the entire industry," Derek Kerr, the company's chief financial officer, said during a conference call with analysts and reporters Tuesday.
US Airways spent $390 million more on fuel during the second quarter than it did during the same period a year ago, a 65 percent increase.
FUEL IMPACT
As a result of the enormous jump in fuel costs, US Airways Chairman and Chief Executive Officer Doug Parker said the company would make deeper job and flight cuts across its system than initially planned.
The good news, at least as far as the Pittsburgh region is concerned?
"There aren't any large, new impacts in Pittsburgh beyond what we've already done," company President Scott Kirby said, alluding to the elimination of more than 900 jobs and 40 daily flights here earlier this year.
Systemwide, US Airways previously said it would eliminate 1,700 jobs through attrition, buyouts and layoffs, but officials said Tuesday that number will be closer to 2,000. Many of the 600 management cuts have already been made, while remaining cuts in management and other work groups will be made by early fall, a spokesman said.
US Airways also said Tuesday it will cut capacity, or number of available seats, by an added 1 percent to 2 percent in the fourth quarter and next year. It plans to reduce capacity on domestic flights 6 percent to 8 percent in the last three months of the year and 8 percent to 10 percent next year.
SUCCESS STORIES
Despite the steep financial losses, Parker said he was encouraged by US Airways' improved operations, particularly its on-time performance, which has ranked in the top three among major carriers for six months in a row.
"That's a big turnaround from being 10th out of 10," Parker said.
Parker also said US Airways' "a la carte" pricing programs are doing better than expected.
US Airways, along with most other major carriers, has started charging passengers extra for individual items and services that were once bundled into the airfare.
For instance, US Airways is now charging extra for the best seats in the coach cabin and imposing fees for first and second checked bags. It plans to start charging for all in-flight drinks next month. Parker said the programs should generate up to $500 million a year in new revenue, $100 million a year more than initially estimated.
Tom Fontaine can be reached online at tfontaine@timesonline.com.
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