PHOENIX (AP) — US Airways Group Inc. said yesterday it swung to a loss in the first quarter, punished like other airlines by the rising cost of jet fuel.

The Tempe, Arizona-based carrier said it lost $236 million, or $2.56 per share, in the January-March period versus a profit of $66 million, or 70 cents per share, a year earlier. Excluding special items, the net loss was $239 million, or $2.60 per share.

Revenue rose to $2.84 billion from $2.73 billion a year ago.

Analysts, on average, had expected a loss of $2.64 per share on revenue of $2.84 billion. The earnings estimates typically exclude one-time items.

Its shares rose 27 cents, or 4.3 percent, to $6.52 in morning trading.

"Our first-quarter results reflect the extremely high fuel prices that are affecting our entire industry," US Airways CEO Doug Parker said in a statement.

US Airways' earnings report came a day after Northwest Airlines Corp. and Delta Air Lines Inc. reported combined losses of more than $10 billion. Most of those losses came on write-downs to reflect a decline in market value. Excluding the charges, Northwest said it would have lost $191 million while Delta said it would have lost $274 million. Delta has agreed to buy Northwest.

"The large losses posted by US airlines this quarter, the forecast for further losses and the recent liquidations and bankruptcies of a number of carriers, indicate quite clearly that the US airline industry is in financial turmoil," Parker said.

US Airways said it gained almost four percent more revenue for every passenger it flew in the three months that ended March 31. But that didn't keep up with the price of jet fuel, which pushed costs up 17 percent per available seat.

Overall, fuel price including realised gains from hedging was up 29 percent in the quarter, to $2.60 per gallon, from the same period last year.

If gas prices had stayed about the same, the airline's fuel costs would have been $260 million lower, chief financial officer Derek Kerr said.

US Airways said they're dealing with high fuel costs in a number of ways:

• This quarter, US Airways started charging passengers more for selected coach seats and to check a second bag. The carrier said it expects initiatives like these to raise about $70 million in 2008, and more than $100 million annually after that.

• The airline boosted some fares. For example, for flights of less than 500 miles, US Airways said it no longer offers non-sale one-way fares that are less than $69.

• US Airways also plans to cut capacity two percent to four percent in the second half of the year. And it plans to return six Boeing 737-300 planes when their leases expire in 2008 and 2009. US Airways also said it is taking steps to improve its cash position, including an amendment to its credit card processing agreement that will free up capital.

As of March 31, US Airways had $2.8 billion in total cash and investments, of which $2.4 billion was unrestricted.

Almost three years after its 2005 combination with America West Airlines, US Airways is still merging staffs. The carrier has yet to reach combined work contracts with pilots, flight attendants and baggage and ramp employees. The baggage and ramp employee union, however, already has signed off on a tentative agreement that needs to be ratified by its members.

The pilots union has been plagued by infighting following an arbitrator's ruling last year to mix their seniority list. Some pilots have filed a lawsuit to get the ruling overturned. Another group formed a union that successfully ousted the Air Line Pilots Association last week and took over as the collective bargaining unit for all 5,300 pilots in the US Airways system.