US Airways posted a quarterly loss on Tuesday, reversing a year-earlier profit, on high fuel prices.

The carrier said its second-quarter net loss amounted to USD$567 million, compared with a profit of USD$263 million a year earlier.

Excluding one-time charges US Airways, which formed in 2005 from the merger of America West and the former US Airways, said it posted a loss of USD$101 million.

Operating revenue rose 3.2 percent to USD$3.26 billion. The carrier paid USD$1.09 billion for fuel in the second quarter, an increase of 65.1 percent from a year ago.

US airlines have been punished this year by skyrocketing fuel costs that have outpaced a series of fare increases that began in 2006. Carriers are responding with sweeping cuts to capacity and staff.

US Airways, which previously announced capacity cuts to offset its fuel bill, said on Tuesday it would reduce its fourth quarter and 2009 capacity by an additional one to two percent. That brings total capacity cuts to 4 percent to 6 percent for the fourth quarter and for 2009.

The company reported a USD$622 million non-cash charge to write off goodwill. The elimination of goodwill stems from record high fuel prices.

The company also reported a non-cash charge of USD$18 million related to the decline in the fair market value of some assets associated with its fleet.

The company ended the quarter with USD$2.8 billion in total cash and investments, of which USD$2.3 billion was unrestricted.