US Airways Reports $279 Million Second Quarter Profit
07/21/2010
Continuing a string of favorable earnings reports for U.S. airlines, US Airways reported a profit for the second quarter 2010 of $279 million, citing business travelers who paid more for their tickets. The airline said it was the second highest quarterly profit that it has seen since the merger of US Airways and America West in 2005. Those results compared favorably to a net profit of $58 million for the second quarter of 2009. Excluding special items, US Airways reported a net profit of $265 million, or $1.34 per diluted share, for the second quarter 2010.
Doug Parker, the airline’s chairman and CEO, said that the airline had reduced capacity, maintained cost discipline and increased ancillary revenues. He said that an improving economy also helped. Total revenues in the second quarter were up 19.3 percent versus the second quarter 2009. This improvement was driven by higher passenger yields due to an improving economy resulting in greater demand for business travel. Total operating expenses in the second quarter were up 10.4 percent over the same period last year due primarily to a 38.7 percent increase in mainline and Express fuel expense.
“We are encouraged by the economic recovery we have seen thus far, and are extremely pleased with our team’s results,” Parker said. “Looking forward, and based on current business and economic conditions, we expect to report a profit for the third quarter and full year 2010.” For more information, visit www.usairways.com.
