USAir Group Inc. reported Monday a third-quarter loss of $180.1-million and predicted a continued drop in revenue for the remainder of the year as its airline struggles to cut $1-billion a year in costs.
Airline officials estimated that as much as $40-million of this year's third-quarter loss is a direct result of passengers turning to other airlines after last month's crash of a USAir 737 jetliner outside Pittsburgh that killed 131 people.
USAir chairman Seth E. Schofield called the results "disappointing." He said revenue for the quarter was below company expectations and said USAir now expects that revenue for the rest of the year will be below earlier company projections. In a statement, Schofield said the losses "underscore the urgent need to reduce operating costs to a level competitive with the industry."
USAir has asked its unions for wage and work-rule concessions totaling $500-million a year to help the company achieve the $1-billion in savings. So far, however, negotiations have not gone well.
Company negotiations with the pilots union broke off two weeks ago when USAir told the union it planned to eliminate 37 aircraft next year, including the sale of the 767 jetliners that service the airline's overseas routes.
The company's third-quarter loss of $180.1-million compared with a loss of $177.6-million a year ago.
USAir is the dominant carrier at Tampa International Airport.