U. S. Airways Blames Labor and Fuel for Losses

The seventh-largest U.S. carrier is in talks with America West concerning a merger that may allow it to emerge from bankruptcy.

US Airways Group, articulated that its first-quarter loss widened to $ 191 million on increased spending for fuel and lower fares. Labor and fuel are airlines’ largest expenses.

The company blamed its $ 191 million loss on soaring fuel costs. The airline spent $ 368 million for fuel in the first quarter, nearly 58 percent more than the same period a year ago.

Like most of the nation’s airlines, US Airways could attribute its loss largely to high fuel prices.

US Airways said its average fare per mile dropped 13 percent.

The airline’s total costs slipped 0.8 percent to $ 1.83 billion as a 12 percent reduction in the number of employees helped slash labor spending 26 percent to $ 477 million.