US Airways Group Inc. will cut another 2,500 jobs, or 7.1 percent of its work force, over the next three months as it continues to work toward emerging from bankruptcy protection.
The airline based in Arlington, Va., also said it is seeking additional concessions from labor unions.
Baltimore-Washington International Airport will lose about 13 baggage handlers, ticket agents and gate agents in the latest round of reductions, company officials said yesterday.
The nation's seventh-largest airline will also close a heavy maintenance hangar in Tampa, Fla., and a reservations call center in Orlando, Fla., which together employ 661 people. Some of those workers will be offered jobs in Pennsylvania and North Carolina.
US Airways has laid off 14,000 workers, out of more than 49,000, since the terrorist attacks last year significantly hurt the industry. The airline employs about 35,000 employees.
Company officials said the threat of war with Iraq, a weak economy and higher fuel prices have resulted in a worse-than-expected revenue stream and forced additional cuts.
"Every mature network airline is struggling with how to adapt to fundamental changes in the airline business, where high costs will no longer be subsidized by passengers paying premium fares and low-cost airlines have become a major force in the industry," President and Chief Executive Officer David Siegel said.
"Cost cutting and furloughs are an unfortunate and painful part of that process. ... "
As part of the carrier's plan to restructure its debt and return to profitability, it is trying to cut more than $1.6 billion in annual costs.
US Airways lost $852 million in the first nine months of this year, $335 million of it in the third quarter. The entire industry lost $2.5 billion in the quarter.
Although the faltering airline filed Monday to extend its deadline for filing a plan to come out of bankruptcy, company officials said they are optimistic that the plan will be done by Dec. 20. The company would then expect to emerge from bankruptcy by March.
US Airways officials said the company had met initial cost-savings outlined by the Air Transportation Stabilization Board, but revenue fell short, forcing the airline to find additional savings.
The airline has filed for a $900 million government loan guarantee from the board, which was set up to help struggling carriers after terrorist attacks last year.
Labor unions representing US Airways employees are still negotiating with the airline to make additional cuts and work- rule changes.
Airline spokesman David Castelveter said labor savings are crucial to the company's meeting its deadline.
"The clock is really ticking for us," Castelveter said. "We expect to submit our plan by Dec. 20. We need all of those agreements in place by then."
Analysts said US Airways is facing an industrywide problem, but is taking the right steps.
"It's just going to be part and parcel for the industry," said Tom Burnett, an analyst with Merger Insight, an affiliate of the New York brokerage firm Wall Street Access.
"The capacity is too high. You have to bring in the revenues but not discount the traveler."
"Most people realize that the company has to be reorganized and the current debt-holder will end up owning a substantial amount of the reorganized company," Burnett said.
Analysts and US Airways officials have said the carrier's stock could become worthless when the bankruptcy proceeding is completed.
US Airways stocks closed unchanged yesterday at 55 cents.