Full planes help boost 1st-quarter results for US Airways
By From Wires Reports
Published: Tuesday, April 23, 2013, 2:54 p.m.
Full planes were good to US Airways.
The nation's fifth-largest airline posted a bigger adjusted first-quarter profit as it carried more passengers, and collected more from them.
US Airways Group Inc. earned $44 million, or 26 cents per share. Its adjusted profit was 31 cents per share, topping the expectations of analysts polled by FactSet.
Revenue rose 3.5 percent to $3.38 billion.
The airline earned 28 cents per share in the year-ago quarter, but that was inflated by a swap with Delta for landing rights in Washington.
Occupancy rose 2.4 percentage points to 81.7 percent.
US Airways CEO Doug Parker said Tuesday his airline has “made a lot of progress” since announcing its merger with American Airlines in mid-February. US Airways says it still expects the deal to close by the end of September.
The staffs of the two airlines have started working together and “are working together extremely well,” Parker said. “We're on track to meet our goals.”
The $11 billion merger of Tempe, Ariz.-based US Airways and Fort Worth-based American will create the world's largest airline. Parker will lead the combined carrier, which will keep the American name and Fort Worth headquarters.
“We've made a lot of progress since we announced (the merger with American) in mid-February,” Parker told financial analysts and investors Tuesday in a conference call about US Airways' first-quarter financial results.
Last week, American and its parent AMR Corp. filed its disclosure statement with the U.S. Bankruptcy Court. Also last week, American and US Airways filed registration documents with the Securities and Exchange Commission, detailing the long road to their merger.
Parker acknowledged the two airlines have “some cultural differences,” but that each has “a lot of positives” and the combined carrier will “try to meld” the best of both cultures.
The airlines are working on plans to combine their code-sharing agreements soon after the merger closes, Parker said. US Airways also is working with its Star Alliance partners for a smooth transition to American's Oneworld Alliance, he said.
The two airlines are on track for regulatory and antitrust approvals, Parker said. Since US Airways filed with the U.S. Department of Justice on Jan. 31, it has received a second request and is working with the agency to provide the necessary information, he said.
US Airways plans to file its application for European Union competition approval in May, Parker said.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Diaper makers do due diligence
- Minorities crucial to filling Marcellus shale gas drilling jobs
- Harsh winter sets back Western Pa. maple harvest
- CVS suit could be test case
- Real estate goes techno
- Prepaid cards start to elbow aside bank accounts
- ‘Boomerang’ buyers get another chance at homeownership
- Lab develops sponges for oil spill cleanup
- Samsung introduces free streaming radio service
- Cabbies protest ride startups
- JPMorgan whistle-blower gets $64M for mortgage fraud tips