US Airways Group Inc sold nearly 22 million new shares on Thursday to raise US$179 million as it grapples with a projected US$2 billion fuel bill this year.
The deal includes 19 million shares sold to Merrill Lynch & Co, which is the sole book-running manager for the deal, and an additional 2.85 million to underwriters, the carrier said.
It was not immediately clear if Merrill was the buyer of the additional shares or if there were other underwriters. US Airways spokesmen declined to comment on the offering, and Merrill spokesmen were not immediately available.
The airline said it planned to use the proceeds for general corporate uses. US Airways had 92.17 million shares outstanding before the new issue.
US Airways and other airlines have been scrambling to find ways to deal with a spike in jet fuel costs. The Air Transport Association expects the industry to lose a combined US$7 billion to US$10 billion this year because of fuel costs.
Besides the new shares, US Airways officials have installed a menu of added travel fees, including charges for checked bags, soda and choice seats that are expected to raise as much as US$500 million this year. The airline also plans to further cut seating capacity to keep fares high.
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