TribLIVE

| Business


 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Full planes help boost 1st-quarter results for US Airways

By From Wires Reports
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

Most-Read Business Headlines

  1. Utility regulator seeks $639,000 in penalties from electric supplier
  2. Google Maps opens business doors to online views for shoppers
  3. Many in Pennsylvania can still get benefit of Affordable Care Act
  4. Indian firm plans exports of ethane from U.S. shale fields
  5. EDMC to cut costs, roll out new grant
  6. Few homeowners expected to benefit from Bank of America’s $16.65B settlement
  7. Back-to-school season deals just a click away with new services, apps
  8. 5 apps that make you say ‘wow’
  9. United tries to woo fliers with upgraded food options
  10. Economic indicator rises 0.9% in July
  11. Airline group forecasts uptick in Labor Day travel
Subscribe today! Click here for our subscription offers.