STILL Hoping To Return To Profitability

US Airways, fresh from Chapter 11 bankruptcy, is still trying to find a way to turn a profit. Now, the airline has struck a deal with the Air Transportation Stabilization Board to restructure the $1 billion loan it got after coming out of bankruptcy a year ago, hoping to balance the books.

Under the deal, US Airways repaid the government $250 million. That leaves the company with about $925 million in unencumbered cash, according to Chairman David Bonner.

"This agreement gives us a narrow window for management and labor to continue to work together to make the changes necessary to get this company back to profitability," Bonner said in a statement to ANN.

Prior to the restructuring deal with Washington, US Airways got an ominous warning from its auditors, KPMG: The airline's recurring losses raise "substantial doubt about its ability to continue as a going concern."

"We are talking with all of our employees and other key stake-holders on how to respond to the new marketplace reality that only low-cost carriers are making money," US Airways CEO David Siegel said in a statement.

FMI: www.usairways.com