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USAIR GROUP EXPECTS LOSSES FOR THE QUARTER AND YEAR; ANNOUNCES COST REDUCTION MEASURES

 ARLINGTON, Va., Sept. 30 /PRNewswire/ -- USAir Group (NYSE: U) announced today it expects financial losses for the third quarter and for the year. It also announced plans to lower operating costs.
 USAir Group Chairman, President and CEO Seth E. Schofield expressed disappointment that 1993 revenues, while significantly above last year's levels, fell short of expectations this summer. As a result, USAir Group expects a pre-tax loss for the third quarter of approximately $180 million and operating and net losses for the year. The third quarter pre-tax loss will include a non-recurring charge of $75 million.
 Schofield said, "In the face of these projected losses, USAir is taking immediate steps to lower projected 1994 operating costs by approximately $200 million." These steps will include, among other actions, a work force reduction of approximately 2,500 full-time positions, which will begin in November 1993 and be completed in the first half of 1994.
 Anticipated third quarter financial results will include non-recurring charges for severance, early out and other personnel- related expenses.
 The company also indicated that its results for 1993 will include a one-time pre-tax charge of $44 million for a retroactive change in the method of accounting for post-employment benefits (FAS 112) for inactive employees. The FAS 112 charge is a non-cash expense and will not be reflected in third quarter results. Rather, it will be retroactive to Jan. 1, 1993.
 Schofield also said: "Consumers are becoming increasingly price sensitive, and we are witnessing a resurgence of low fare competition from airlines whose cost structures enable them to offer the lower prices that consumers demand. For USAir to remain competitive in the new realities of the marketplace, we must reduce costs and find ways to restructure our organization to make it more efficient."
 -0- 9/30/93
 /CONTACT: USAir Corporate Communications, 703-418-5100/
 (U)


CO: USAir Group ST: Virginia IN: AIR SU: ERN PER

MH-DS -- DC003 -- 7125 09/30/93 08:46 EDT
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Publication:PR Newswire
Date:Sep 30, 1993
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