US Airways to cut jobs, fleet; charge for 1st bag

The Tempe, Ariz.-based carrier said it would cut domestic flights, shrink the size of its fleet, slash 1,700 jobs, charge passengers to check their first bag and add a fee for nonalcoholic drinks during flights.

"We must write a new playbook for running a profitable airline in this new and challenging environment," US Airways Chairman and Chief Executive Doug Parker said in a statement.

Fliers will now pay $15 to stow even one bag in the cargo hold for tickets booked on or after July 9, 2008. US Airways will be the third major carrier to add such a charge.

The free drinks in coach are on their way out too. Passengers in the back will soon be charged $2 per nonalcoholic drink starting Aug. 1.

In addition, US Airways plans to cut domestic mainline capacity 6 percent to 8 percent in the fourth quarter, and another 7 percent to 9 percent in 2009. Its Las Vegas operation will be reduced by almost half by the end of the year, rolling back daily flights to 74 from a high of 141 flights in 2007.

US Airways also is returning 10 planes, canceling leases on two more and planning to park more through 2010.

The action follows retrenchment at most major carriers in recent weeks that will effectively reshape the American air travel industry.

AMR Corp.'s American Airlines, the nation's largest airline, plans to eliminate thousands of jobs and cut 11 percent to 12 percent of capacity after the peak summer travel season. Continental Airlines Inc. also plans to cut 3,000 jobs.

In addition, American Airlines and UAL Corp.'s United Airlines will charge $15 for the first checked bag, and Southwest Airlines Co. says it's flying slower to save $42 million in fuel.