US Airways reports $567 million loss

CHARLOTTE, N.C. -- US Airways released their second quarter report on Tuesday and the news is not good.

The airline posted $567 million in losses and will cut 1,700 jobs. They say they're going through tough times because of high jet fuel costs.

The CEO said tickets could cost as much as $700 each.

That's on top of other changes the airline has already made that include charging you for drinks, baggage and choice seats. It's making some passengers think of other ways to get around.

"I feel like you're going to get a lot of people not flying," said Dennis Handlin, a US Airways passenger. "They're going to drive or maybe take the train or bus."

One economist said we could see an increase of $100 a ticket in the next six months.

AAA of the Carolinas' travel agents have already noticed some changes in where passengers are choosing to fly.

"We've seen more of a consolidation of people's travel more local travel, more domestic travel than we have international travel because of the high prices of an airline fare," said Tom Crosby, vice president of communications for AAA of the Carolinas.

Crosby said while there may be a fare increase, he thinks $700 a ticket is a "scare tactic."

"It just sounds a little unrealistic to raise the prices to a point where people can't afford to fly," he said.

Economists predict if there is a significant increase in fares, flying may be considered a luxury and people may decide to wait for those special occasions to take a flight.

Handlin said he and his family will have to rethink their next vacation if prices do go up.

"I would probably settle on driving next time if the rates were that high," said Handlin.