US Airways’ Stock Jumps
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CHICAGO (AP) _ The stock of US Airways Group Inc. jumped Thursday as the financially strapped carrier and its unions headed into an afternoon of talks on cost-cutting measures.
In late trading, shares of US Airways shares were at $3.10, up 18 cents, or 6.2 percent on the New York Stock Exchange.
The nation’s sixth-largest airline lost close to $2 billion in 2001 and has said it has no hope of making a profit without a major restructuring.
At its annual shareholders meeting Wednesday, David Seigel, the recently named president and chief executive, said the Arlington, Va.-based company plans to cut labor and aircraft costs and will apply for a federal loan guarantee.
If it can’t accomplish those tasks, US Airways will be forced to file for Chapter 11 bankruptcy protection, Seigel said, reiterating statements made in an SEC filing last week.
Seigel recently said that US Airways has the highest labor costs in the industry.
The stock had fallen steadily since the company broached the possibility of going bankrupt in its most recent quarterly report. On Tuesday, Standard & Poors dropped the beleaguered shares from the S&P 500 Index.
In the past 12 months, shares of US Airways have traded as high as $25.95. Monday, the shares hit a year low of $2.20.
US air carriers have until June 28 to file with the Air Transportation Stabilization Board for loan guarantees, put in place after the Sept. 11 attacks.
To date, only one airline, America West Holdings Corp., has gotten a loan guarantee. In recent weeks, some members of Congress have called for cuts in the $15 billion airline financial assistance program, to save money.
Spokesmen for U.S. Airways said it was too soon Thursday afternoon to say whether information from Thursday’s meetings would be made public.