By Matthew Barakat
The Associated Press

ARLINGTON, Va. - US Airways leaves bankruptcy today to test whether its reorganization was sufficient to help it survive a time of unprecedented financial turbulence in the airline industry.

The emergence after just eight months - much shorter than experts had expected - comes in the midst of a war that threatens to devastate the entire industry.

Travelers won't see much difference, except for a planned increase in the use of regional jets over turboprop aircraft, spokesman Chris Chiames said.

The airline will maintain its focus on the eastern United States, with a slightly expanded presence in the Caribbean.

In its business plan, the nation's seventh-largest airline projects a profit of more than $100 million next year based on revenue growth of 13 percent, although the forecast was formulated before the Iraq war's start. The company has lost more than $3.8 billion over the last two years.

US Airways has cut its annual costs by $1.9 billion, thanks mostly to employee wage and benefits concessions.

However, the war is hurting business. The airline acknowledged its bookings dropped 20 percent in the war's first week.

The company anticipates higher fuel costs and lost revenue from the war will cost at least $360 million. During the weekend, the airline told employees to expect a 5 percent wage cut because of war, and said it plans to reduce capacity by 5 percent from its 279-jet fleet.

Some analysts wondered if all that will be enough.

"If I were them, I might want to stay in bankruptcy a little while longer," said Thomas Boland, an industry expert who is managing director of Seneca Financial Group in Greenwich, Conn.

"Look at what happened in the Gulf War. Airline revenue dropped 8 percent and took a year to recover in a better economic scenario than we have today."

US Airways does not have the luxury of waiting. The critical piece of its restructuring plan is a $900 million federally guaranteed loan it receives only after leaving bankruptcy.

On Friday, the New York Stock Exchange announced it would stop trading in United Airlines parent UAL Corp. because that bankrupt carrier's stock had fallen below $1 a share for a 30-day period.

United lost $3.2 billion last year and made the largest bankruptcy filing in aviation history on Dec. 9.