A new finite-difference scheme has been developed to solve efficiently the unsteady Euler equations for three-dimensional inviscid supersonic flows with subsonic pockets. The technique utilizes planar Gauss-Seidel relaxation in the marching direction and approximate factorization n the crossflow plane. An 'infinitely large' time step is used in parts of the flowfield where the component of velocity in the marching direction is supersonic - here the Gauss-Seidel sweeps are restricted to the forward direction only, and the procedure reduces to simple space-marching; a finite time step is used in parts of the flowfield where the marching component of velocity is subsonic - here, backward and forward Gauss-Seidel sweeps are employed to allow for upstream and downstream propagation of signals, and a time-asymptotic steady state is obtained. The discretization formulas are based on finite-volume implementation of high accuracy (up to third-order) total variation diminishing formulations. Numerical solutions are obtained for an analytically defined forebody, a realistic fighter configuration, and the Space Shuttle. The results are in very good agreement with available experimental data and numerical solutions of the full-potential equation.