Stock Under $10 with 50-100% upside potential - 14 Days FREE!

US Airways Moves Could Cost 1,000 Jobs

Stock quotes in this article: LCC 

While the America West system bore the brunt of the 2008 cuts, the eastern part of the system will be heavily impacted this time. The 1,000 reductions will include about 600 airport and fleet service workers, 200 pilots and 150 flight attendants. About 165 pilots and 130 flight attendants will come from pre-merger US Airways.

US Airways will also redeploy its remaining 15 E-190 regional jets on Philadelphia- Boston flights and on Boston-LaGuardia shuttle flights, where the load factor on 124-seat Airbus A319s is below 50%. Competitor Delta uses less-spacious E-175s on the route, US Airways said.

In a letter to employees, CEO Doug Parker said the layoffs are difficult but "by focusing on our strengths and eliminating unprofitable flying, we will increase the likelihood of returning US Airways to long-term profitability, which is in all of our best interests." The carrier lost $800 million in 2008, lost money in the first three quarters of 2009, and will likely lose more in the fourth.

"It is obvious that we cannot continue to operate unprofitably forever," Parker said. "It is also clear that the path to sustainable profitability will not simply present itself to us. Any airline 'waiting for the economy to improve' to cure its problems will continue to struggle, and US Airways will not be one of them."

In an interview, Mike Flores, president of the US Airways chapter of the Association of Flight Attendants, said he expects the changes will make the airline stronger, "and I'm fine with that part of it, but I'm not fine with the disruption of peoples' lives while we do this.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
TRY IT FREE

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
Dividend Stock Advisor
TRY IT FREE
New! $49.95/yr

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Stocks Under $10
TRY IT FREE

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Real Money
TRY IT FREE

24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.

Product Features:
  • Jim Cramer + 20 Wall Street pros
  • Intraday commentary & news
  • Real-time trading forum
  • Actionable trade ideas
Real Money Pro
TRY IT FREE

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass + 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
TRY IT FREE

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 15,387.58 52.30 0.34%
NASDAQ 3,502.12 5.69 0.16%
S&P 500 1,669.16 2.87 0.17%
US 10 Yr 1.944% -0.021

Brokerage Partners

Advertising Partners
Special Features

Free Newsletters from TheStreet

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

We respect your privacy. Manage Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs