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US Airways Bankruptcy

As you’ve likely heard elsewhere, US Airways has once again declared bankruptcy. If you have reservations on the carrier, fret not—the airline isn’t going anywhere for a while. However, as I’ve mentioned here a few times, I’d suggest using your Dividend Miles on a partner carrier. Liquidation is still a possibility, though probably not until next year at some point, and you don’t want to lose all of those miles you’ve got.

US Airways has a very long way to go before they become solvent again. They’ve made some moves in the right direction recently, including closing the Pittsburgh hub, introducing some new focus cities, and building their Caribbean network. But, it was too little too late, and it didn’t go far enough–either you’re a low cost carrier or you’re not. US Airways is sorta half-and-half. This bankruptcy will certainly help their costs come down, but it will take some drastic measures (major pay decreases, continued reductions in service) to make a difference.

On the positive side of things, US Airways has a sale on reward seats this fall and winter, requiring only 20,000 miles for a US ticket, 25,000 miles for a Caribbean ticket and 40,000 miles for a Europe ticket. So at least there’s a tiny bit of good news for travelers.

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