US Airways, seeking $38 million per month in temporary labor concessions, faces the "high probability" of liquidation by mid-February 2005 if the cuts are not approved by U.S. Bankruptcy Court.

The nation's seventh-largest airline made that disclosure in documents filed late Friday with Alexandria, Va., bankruptcy judge Stephen Mitchell, asking him to rule on the temporary request by Oct. 14.

Without the emergency concessions, which include an across-the-board 23 percent pay cut and a host of changes to employee retirement plans, US Airways told the court that it has enough cash to last only another four and a half months. If the carrier is not able to cut costs by another $200 million by early 2005, US Airways predicted "massive layoffs" and "potential liquidation," resulting in the loss of 7,600 jobs in the Pittsburgh area and cessation of all flights.

Not only is the airline worried about revenue dipping during the lean fall and winter travel months, but it also is concerned about being able to make $260 million in aircraft debt and lease payments due in January and February.

US Airways entered bankruptcy on Sept. 12 with approval to use $750 million from a government-backed loan for daily expenses. But it has been burning through an estimated $1 million a day, and it could lose its bankruptcy financing and go out of business if cash dips below $550 million by Oct. 15.

US Airways disclosed Friday night that it is negotiating with the federal Air Transportation Stabilization Board, backer of the loan, to extend the use of cash beyond mid-October, and that such an extension is more likely if US Airways can demonstrate an ability to emerge from its Chapter 11 bankruptcy proceedings and avoid liquidation.

US Airways acknowledged the pain being felt by its 28,000 workers, who sacrificed $1 billion during the airline's first bankruptcy two years ago. But it also argued that with the interim, 23 percent pay cuts in place, employees will still receive an average annual salary of $45,822, slightly more than the averages at low-cost carriers JetBlue Airways and America West Airlines.

But the pain could increase in the coming months. The Arlington, Va.-based airline is still seeking a much larger package of permanent concessions from its labor groups, which balked collectively at an $800 million pre-bankruptcy request.

US Airways disclosed Friday that it is now seeking more than $950 million from its labor groups. If unions do not agree to the permanent cuts, just as they resisted the temporary cuts requested last week, the airline can ask the court to enforce the changes.

US Airways also promised the court that it would make some non-labor cuts in the coming months, including $5 million a month in temporary concessions and a reduction in management and administrative positions over the next 30 days.

"US Airways must transform or it will fail," it said.