US Airways considers $2 billion 'hole'

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TEMPE, Ariz., June 12 (UPI) -- US Airways expects its jet fuel costs to rise by $2 billion in 2008, its chief executive officer said.

At the airline's annual shareholder meeting Wednesday in Tempe, Ariz., US Airways CEO Doug Parker said the board of directors would consider schedule reductions, layoffs and increased fees, The Arizona Republic reported.

"A $2 billion hole is a rather large hole to dig out of," he said.

US Airways, the first airline to charge for meals, is expected to announce it will charge passengers for soft drinks, sources close to the company said.

Insiders say the carrier will also begin charging fees for a first checked bag, following the lead of American Airlines, where a $15 fee for first bags takes effect next week, the Republic reported.

"Suffice it to say everything is certainly on the table right now," US Airways President Scott Kirby said after the shareholder meeting.