New York: Crippled by the 9/11 terrorist strikes resulting in decline in the number of passengers, US Airways, the sixth largest airlines in US, has filed for bankruptcy protection to enable it to renegotiate agreements with vendors, leasers and financiers.

This is the first major airline to file for protection in the industry, which has lost $ 1.4 billion last quarter and $ 11 billion last year.

Media reports quoted industry analysts as saying it could portend such a move by the second largest American carrier, Untied Airlines that is seeking federal loan backing to obtain crucial financing before it runs out of cash.

But, 'The New York Times' said, United is thought to have greater access to the capital market than US Airways and so far has not said that it would seek bankruptcy protection.

The US Airways has warned already booked passengers that they could be rerouted as it tries to make more efficient use of facilities.

Recently, the cash strapped company had negotiated some concession with two major labour unions and also received conditional approval for $ 900 million in federal loan guarantees.

The company has listed its assets at about $ 7.81 billion and liabilities 7.83 billion dollars and says it hopes to come out of bankruptcy in the first quarter of the next year.

Last month, US Airways posted a net loss of $ 248 million for the second quarter, its eighth-consecutive losing quarter. It lost $ 2 billion last year and was among the carriers most affected by the September attacks because its business is concentrated on the East Coast.

PTI