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UPDATE 1-US Airways to cut 600 airport jobs

Tue Jul 14, 2009 2:27pm EDT

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* Company blames weak travel demand

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* Attrition not working fast enough

CHICAGO, July 14 (Reuters) - US Airways Group (LCC.N) on Tuesday said it would reduce airport staffing by 600 jobs this fall because of weak demand for business travel and declining revenue.

In a note to employees, the company's Chief Operating Officer Robert Isom said the cuts would occur in various of its airport-based operations. Isom said previous efforts to reduce US Airway's work force were possible through attrition.

"In today's economy, however, this is no longer the case with attrition hovering in the low single digits," Isom said. "So, we find ourselves with more employees than our operation requires."

The US airline industry has been severely battered by the economic recession that has eroded travel budgets. Carriers undertook sweeping downsizing last year and some airlines continue to shrink in 2009.

Shares of US Airways were down 1.42 percent at $2.08 on the New York Stock Exchange.

(Reporting by Kyle Peterson, editing by Leslie Gevirtz)



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