WASHINGTON, March 29 (Reuters) - America West Airlines remains doubtful about a major recovery in air travel, predicting on Friday that its near-term revenues will continue to be hurt by a soft economy and a decline in business traffic. In its 2001 annual report filed with the Securities and Exchange Commission, America West Holdings Corp. (AWA) said the recent improvement in passenger traffic had reduced net cash outflows but they remained negative at less than $1 million a day as recently as Wednesday. "Despite a recent increase in air travel, we believe near-term revenues will continue to be negatively impacted by the soft economic conditions and decline in business traffic," the eighth-largest U.S. carrier said. Phoenix, Arizona-based America West said it had not generated positive cash flows on an annualized basis since the Sept. 11 hijack attacks which briefly closed the airline industry and continues to dampen demand. "We expect the Airline's revenues and costs to be negatively impacted by the threat of future terrorist attacks in the near- and long-term. America West in January gave the government an option to take a stake in its operations in return for help in securing $429 million in loans under a post-attack relief plan. On Monday, America West announced it was slashing business fares as much as 60 percent to woo back corporate travel. ©2002 Reuters Limited.