US Airways considers $2 billion 'hole'

June 12, 2008 at 1:40 PM
| License Photo

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.

Related UPI Stories
Latest Headlines
Trending Stories
House Majority Leader Kevin McCarthy drops bid for speaker
WikiLeaks offering $50K for video of Afghan hospital bombing
Murdoch sorry for implying Obama's not a 'real black president'
Reid sues exercise companies over eye injury
Lumber Liquidators to pay $10M in DOJ settlement