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US Airways Turns a ProfitMay 9, 2006 By: Susan Young Travel Agent
Newly emerged from bankruptcy, US Airways Group—formed from the merger of America West Airlines and US Airways last year—on Tuesday reported a first-quarter profit, benefiting from fare increases and a reduction of capacity throughout the industry. The combined airline said its net profit was $64 million, compared with a profit of $28 million, at a stand-alone America West Airlines a year earlier. For reporting purposes, America West is viewed as the acquiring company, and US Airways warned that comparisons to year-ago results can be misleading. Excluding special items, the new US Airways reported a profit of $5 million, reversing a loss of $16 million a year earlier. Statistics aside, Doug Parker, the line's CEO, projected the airline will post a very strong spring and summer, and a profitable year in 2006, despite continued high fuel costs and merger-related expenses.