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IS USAIR ABOUT TO GO UNDER? STOCK FALLS AFTER GRIM AUDIT

Stock in USAir Group Inc. fell 6 percent Monday in response to auditors' doubts about the troubled airline's ability to continue to exist.

In a note to shareholders in the company's annual report, released last Thursday, accounting firm KPMG Peat Marwick LLP said USAir's ability to remain a "going concern" is in doubt because of its recurring losses from operations and its limited cash.Auditors typically define going concerns as companies that are expected to continue operating in the forseeable future without liqui-dat-ing or needing federal bankruptcy-court protection.

Although the nation's sixth largest carrier has suffered financially for the past few years, the filing marked the first time its auditors have included such a warning to shareholders.

The airline, based in Arlington, Va., has posted losses totaling $3.13 billion during the past six years because of increased competition and high costs.

Industry watchers said they are confident USAir has enough cash to make it through the end of the year, as airlines are heading into the two most profitable quarters of the year.

Most doubt, however, the company can make it through next winter if it fails to obtain cost-saving concessions from its unions.

USAir said Thursday it disagrees with KPMG's opinion, saying it has sufficient liquidity for normal operations.