US Airways posts $1 bln fourth-quarter net loss By Patrick Markey NEW YORK, Jan 17 (Reuters) - US Airways Group (U), the No. 6 U.S. airline, on Thursday reported a fourth-quarter net loss of $1 billion as it was battered by the weak economy and the travel slump sparked by the Sept. 11 attacks. Shares of US Airways tumbled after it reported record-breaking fourth-quarter losses that came in at the low end of Wall Street expectations. The stock closed down 7.3 percent, or 41 cents, at $5.20 at the end of Thursday trading on the New York Stock Exchange after reaching a session low of $5.01. Arlington, Virginia-based US Airways, further hurt by the temporary shutdown after the attacks of its hub at Ronald Reagan National Airport near Washington, D.C., said revenues plunged more than 33 percent to $1.57 billion from $2.35 billion a year earlier. The losses capped a tough year for US Airways: Its chief executive left in November and even before the attacks it saw business on its major routes eroded by low-cost rivals. US Airways Chairman and Chief Executive Stephen Wolf said the airline was eyeing ways to bolster revenues by combining its routes with a larger network without entering into a merger. "The most important thing we can do to improve our revenues is to figure out how to access the enormous amount of incremental revenue we would bring to a larger network," Wolf told investors during a conference call. US Airways said it ended the year with $1.08 billion in cash and expects to burn through $3 million a day during the first quarter. It expects a significant loss in its first quarter, but executives see the airline's operating cash flow turning positive in the second quarter. Wolf said the airline still has no intention of filing for bankruptcy and does not plan to apply for the loan portion of the government's $15 billion bailout program for the industry. US Airways reported a $14.89 per share net loss for the quarter. Excluding charges and other unusual items, it lost $552 million, or $8.16 per share. CLOUDY OUTLOOK US Airways shares have plummeted nearly 90 percent from a year ago and the stock is off about 50 percent since the attacks, which crippled the nation's air system and sharply curtailed air travel demand. Heavily reliant on its East Coast routes, where analysts say traffic has been slower to return, US Airways has struggled more than other airlines to counter weaker demand, especially as full service has not returned to Reagan National Airport. Aviation experts also believe the carrier is one of those most at risk for bankruptcy because of its high debt-to-capital ratio and high labor costs. The airline last year unveiled a restructuring plan to bolster its regional jet fleet and retool its mainline fleet to cut costs and stave off competition on major routes. Part of that deal called for unions to discuss possible cost-cutting measures. But the airline is still mired in talks with its pilots over expanding its fleet of more cost-efficient small jets. "Everyone was expecting a huge loss," said Ray Neidl, an airline analyst with ABN Amro. "What is going to effect them is whether the unions and management can reach an agreement to reduce labor costs." Last year's restructuring came after antitrust regulators scuttled a $4.3 billion bid by UAL Corp.'s (UAL) United Airlines to acquire US Airways. US Airways expects its first-quarter fleet capacity will be down 18 percent to 20 percent from last year as it adjusts operations.