S&P: US Airways watch still negative

Standard & Poor's said its ratings on US Airways Inc., which were lowered to current levels Jan. 9, remain on CreditWatch with negative implications, after US Airways Group Inc. (B-/Watch negative/--) reported a fourth-quarter 2003 net loss of $98 million, compared with a net loss of $794 million in the year-earlier fourth quarter.

The fourth-quarter 2003 results benefited from gains on the sale of investments, while the fourth-quarter 2002 period included unusual bankruptcy-related charges. Excluding these items, the company narrowed its pretax loss to $129 million from $352 million, reflecting cost reductions achieved in Chapter 11 and an improved revenue environment.

S&P said still, results remain unsatisfactory and behind original plans, particularly given the considerable restructuring implemented in bankruptcy during 2002 and 2003.

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