Faced with an ever-declining operating environment in the USA, Star Alliance member US Airways sees an immediate need to increase revenue and decrease expenses but remains confident in its continued stability.

“For US [Airways], the best thing we can do is manage our costs aggressively and also explore other revenue generating ideas fully,” says management in an employee newsletter dated 3 April.

“Programs like charging for the second checked bag, while they may not be popular with customers, they simply can’t be ignored and must be explored and implemented as they have the potential to generate tens of millions of incremental revenue annually.”

While the amount generated from these programs “isn’t quite enough, on its own, to offset the nearly $1 billion that fuel will add to our 2008 expenses”, says US Airways,

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