Shares in the US Airways Group fell by seventeen percent yesterday...
Shares in the US Airways Group fell by seventeen percent yesterday, declining for a second day after the airline said that it may have to file for Chapter 11 bankruptcy protection unless it gets a federal loan guarantee.
The seventh largest US airline was one of the carriers analysts considered most likely to fail after the September 11th terrorist attacks. US Airways had a first quarter loss of $269 million on a twenty four percent revenue fall because of lower air travel and fares after the attacks. The company has lost money for seven straight quarters, partly because of increased low fare competition on the East Coast.
?It's the bankruptcy story all over again,? said Standard & Poor's analyst Jim Corridore, ?Anybody who saw the news over the weekend would be inclined to get out of the stock.?
The stock fell by 62 cents to $2.98, reducing the company's stock market valuation to $203 million. US Airways shares have dropped by eighty nine percent over the past year.