US Airways will carry on being the Island's most frequent visitor - despite filing for bankruptcy on Sunday.

The airline flies four flights a day to Bermuda, out of New York's La Guardia, Philadelphia, Washington and its hub at Charlotte, North Carolina but announced loses of $2.1 had pushed it over the financial brink.

However local manager Earl Basden said jobs and services here would not be cut - at least for the time being.

He said: "Our schedules are already set for the winter period and we are going to keep it."

He said the four daily flights would continue until the end of March but he could not say what would happen beyond that.

Mr. Basden said company president David Siegel had predicted the firm would be out of bankruptcy by the first quarter of next year.

There would be no loss of any of the 19 staff and any vacancies would be filled said Mr. Basden.

He added: "We have a good relationship with the union."

Bermuda Airport General Manager James Howes was equally optimistic.

He said: "Their intention is business as usual. As I look out my window I see the US Airways plane boarding and unloading as normal.

"Regrettably it's true in the airline business we have seen bankruptcies in the past by major carriers.

"In many cases they successfully recover. Continental comes to mind. A few years ago they emerged stronger than ever. I hope the same will happen with US Airways."

US Airways, America's seventh largest airline, was badly affected by the post September 11 slump and has received $500 million private financing to keep going during a reorganisation as well as US Federal funds.