- The Washington Times - Monday, July 22, 2002

MORRISVILLE, N.C. (AP) Midway Airlines racked up $11.46 million in losses during the first six months this year, the company said in a report to the bankruptcy court, a financial drain that helped explain the airline's decision to ground its fleet last week.
Until now, the magnitude of the airline's losses since it resumed operations in December was a mystery to outsiders.
Midway did not file regular income and expense information with the U.S. Bankruptcy Court in Raleigh, N.C., which was overseeing the company's Chapter 11 reorganization. When court officials complained about the missing data, Midway said releasing income and expense reports could undermine confidence in the airline.
Midway Chief Executive Officer Robert Ferguson cited continuing losses as a reason for why the airline shut down operations Wednesday and teamed up with US Airways Inc., based in Arlington.
On Friday, Midway disclosed six months of financial information to the bankruptcy court.
Financial statements filed with the court showed the airline was losing millions of dollars each month at the same time that its executives were adding flights and seeing rising levels of passenger traffic.
In January, a month after the airline resumed operations and received $12.5 million in federal bailout money, Midway lost $2.94 million. The airline added nine flights in February but lost $2.06 million.
As confidence in air travel improved and Midway continued to board passengers, the losses continued.
The airline boarded twice as many passengers in March compared with the previous month, yet it posted a $1.54 million loss. In June, the most recent month for which data were filed, Midway lost $1.44 million on revenue of $4.77 million.
Midway had filed for bankruptcy protection in August, citing a drop in the number of passengers. The Morrisville, N.C., carrier listed assets of $318 million and debts of $232 million.
Midway continued flying on a reduced schedule but ceased operations after September 11. It resumed flying Dec. 19 after receiving the $12.5 million federal grant.
US Airways said Midway will operate as part of US Airways Express, flying a fleet of regional jets beginning in October. Midway will remain a separate company, but its jets will fly under the US Airways Express banner, and its pilots will wear US Airways uniforms.

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