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US Airways CEO: Demand may improve in January

By The Associated Press  Thursday, December 04, 2008

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MINNEAPOLIS - Demand for airline seats at US Airways is getting better rather than worse but the outlook is still hazy, the airline’s chairman and chief executive said Tuesday.

At the Credit Suisse Global Airlines Conference in New York, an analyst asked Doug Parker how demand was shaping up. Airlines — and their investors — have been worried because many companies have cut back on corporate travel at the end of the year to save money.

Parker said January “looks better than certainly November did. November was very soft. December looks better than November, and January looks better than December.” Parker stressed that it’s early yet, and hard to tell how January bookings will really shape up.

Parker also said that a $15 fee for the first checked bag has caused a 20 percent dropoff in the number of bags checked by travelers on his airline. He said that, in turn, has helped it improve baggage handling performance by more than 20 percent. The fee also makes up the bulk of $400 million to $500 million in revenue for extra services.

“It’s generating real economic value, but it’s not just about the money. What’s also happening is it’s helping us all to run better operations,” Parker said.

US Airways Group Inc. shares rose 88 cents, or 17 percent, to $6 in Tuesday’s trading. The airline’s largest hub is in Charlotte, N.C.

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