
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, January 28, 1995                   TAG: 9501310028
SECTION: BUSINESS                    PAGE: A6   EDITION: METRO 
SOURCE: ASSOCIATED PRESS
DATELINE: ARLINGTON                                 LENGTH: Short

USAIR TO DOWNSIZE AFTER 4TH-QUARTER LOSS

USAir, racked by two major crashes, saw its losses nearly triple during the fourth quarter, and the airline said it will have to cut staff and cancel purchase of airplanes.

USAir Group Inc., which also has grappled with labor troubles and other costs, reported a fourth-quarter loss of $322 million, compared with $116.5 million in the fourth quarter of 1993.

Chairman Seth E. Schofield announced immediate steps to cut operating expenses, including a shrinking of the airline's operations.

``This will result in a USAir with fewer planes and fewer people,'' Schofield said in a statement. ``As the first of these actions, the company intends to defer eight Boeing 757 aircraft that were scheduled for 1996 delivery.'' He gave few specifics of other cuts.

On July 2, a crash at Charlotte, N.C., killed 37 of 57 people aboard. Then on Sept. 8, a crash near Pittsburgh killed all 132 people aboard. Fourth-quarter revenue was $1.68 billion, down from $1.8 billion a year earlier.

The company said its operating loss before one-time charges was $83.4 million for the quarter, compared with operating profits of $6.7 million in the year-earlier period.

For all of 1994, USAir lost $684.9 million, or $12.73 per share, compared with a loss of $393.1 million, or $8.48 per share, in 1993. Revenues fell to $7 billion from $7.08 billion.

Schofield noted that the carrier had been negotiating with its labor unions for 10 months, seeking wage and benefit givebacks to cut costs.

by CNB