US Airways' Chairman has been moaning this same line for months, first in order to gain sympathy from regulators to approve the merger, and now that the merger has been called off completely, to gain sympathy from another potential suitor.
The message is clear (per industry commentators). US Airways is in need of an entire restructuring from the top down and needs to rid themselves of underperforming routes and retire their oldest fuel guzzling planes in favor of newer fuel efficient ones. Their operating expenses are the highest in the airline industry.
I think we will be seeing a lot of changes from US Airways in the coming months. If not, they are faced with the same prospects as TWA before they were rescued by American--bankruptcy.