MINNEAPOLIS (AP) — US Airways Group Inc. said yesterday it lost $541 million in the fourth quarter on a mix of sour fuel hedges and operating losses.

"Clearly from a financial perspective we're happy to put 2008 behind us," chairman and chief executive Doug Parker said on a conference call. "Due primarily to extraordinarily high fuel costs it was an extremely difficult year for the airline industry and US Airways." He predicted that falling fuel prices and investments to improve service will help US Airways perform better in 2009 than other US hub-and-spoke carriers. However, the company did not predict a full-year profit, saying it's too hard to tell what travel demand will be in the recession.

The nation's fifth-largest carrier said business demand was weak in the fourth quarter. Meanwhile, leisure demand was strong, but aggressive fare sales in January have reduced margins on those tickets.