US Airways admits flub in SEC filing; increases ’09 capacity cut

Oops a daisy! That’s what US Airways’ financial folks might have said after realizing there is a mistake in the carrier’s quarterly report to the SEC. The filing, which holds a number of interesting revelations including a delay to A350 deliveries, says US Airways intends to achieve a fourth quarter domestic mainline capacity reduction of 5% to 7% and a 2009 domestic reduction of 4% to 6%.

US Air 757.jpgThe figures differ from US Airways’ previously-announced plan to reduce fourth quarter domestic mainline capacity by 6% to 8% year-over-year, and domestic mainline capacity for 2009 by 7% to 9% from 2008 levels.

In an 8K filing this morning, US Airways clarifies the matter, saying the word “domestic” was “inadvertently inserted in referring to the fourth quarter and 2009 total mainline capacity reductions”.

The company says fourth quarter 2008 domestic mainline capacity will be down 6% to 8% percent while Express capacity will be down 1% to 3% percent for the same period. For 2009 domestic mainline capacity will be down 8% to 10% percent while Express capacity will be down 5% to 7%  for the same period.

Say what? So capacity cuts will in fact be greater than previously estimated for full year 2009? Yes. And 2010 will see further fleet cuts too, says US Airways in its quarterly filing. Those little percentage points makes a big difference!

, , , , ,

One Response to US Airways admits flub in SEC filing; increases ’09 capacity cut

  1. Bob October 29, 2008 at 8:46 pm #

    Liar-liar pants on fire.

    My goodness, that’s a big mistake and a large drop in service. Let me look into the crystal ball, what do I see? Layoffs, layoffs and more layoffs. But not only at US Airways, this Delta-Northwest merger is going to lose pilots and aircraft too.

    My friend and I came to the conclusion that there will be only 4 to 6 big legacy airlines around the US in the next couple of years. It looks like we are close to being right.

    I don’t like my choices of airlines dwindling so fast. Can you say Monopoly? I knew you could.