US Airways Group Inc. (LCC: sentiment, chart, options) warned this morning that it will take a loss for fiscal 2008, and added that it expects a slump in flight capacity amid waning demand. LCC didn't specify how great a loss it will swallow for the fiscal year, but analysts are expecting the airline to lose $1.77 billion.

Like many of its sector peers, LCC was punished in 2008 by rocketing fuel prices -- and then by sharp decline in demand, as cash-strapped consumers reined in discretionary travel spending. Due to the remarkably weak consumer environment, LCC expects domestic mainline capacity to fall between 8% and 10%, while total mainline capacity is forecast to fall by 4% to 6%.

It seems investors were none too shocked by today's warning, as LCC is hovering near breakeven in the first hour of trading. The stock's 52-week loss stands at a modest 17.7%, and the shares have marched higher along support from their 10-day and 20-day moving averages since early December.