Dashcaptain
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07/28/2003 - Updated 01:22 PM ET
US Airways posts profit in first quarter since bankruptcy exit
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ARLINGTON, Va. (AP) — US Airways posted a $13 million profit in its first quarter since emerging from bankruptcy protection, bolstered by a $214 million handout from the government that masked operating losses.
The Arlington-based airline, which emerged from bankruptcy protection March 31, said Monday it suffered in the second quarter of 2003 from a weak economy and the war in Iraq. Still, its $13 million profit was significantly better than the year-ago quarter, when it lost $248 million.
"We have made great strides in executing the key elements of our restructuring plan related to increasing revenue, reducing costs and improving liquidity, all against the backdrop of a challenging industry environment," said company President David Siegel.
Excluding one-time items, including the $214 million payment from the federal government under the 2003 Emergency Wartime Supplemental Appropriations Act, the airline posted pre-tax losses of $154 million, compared to losses of $250 million in the second quarter of 2002.
The company's new stock is not yet publicly traded; airline stocks are still in disfavor with investors, which has forced the company to postpone plans to put the airline on a publicly traded stock exchange.
The company posted improvements in its costs and revenue per available seat mile, both key industry measurements. Revenue increased 1.1% to 11.08 cents per available seat mile compared to the year-ago quarter. The industry averaged a 0.8% increase.
Cost per seat mile, excluding fuel, decreased 2.2%, to 10.75 cents per available seat mile.
The airline increased its cash on hand during the quarter by $157 million, to $2 billion. The money will be used to finance the company's restructuring plan, which calls for a heavy investment in smaller regional jets that will replace unpopular turboprop aircraft on small routes and more expensive regional jets on larger routes.
US Airways posts profit in first quarter since bankruptcy exit
More airline news
New discounter: Atlantic Air
U.S. faces modernization task
Lufthansa-Swiss deal set
Glitch delays Hawaiian flights
Small jets on rise at hubs
Delta: No more dividends
O'Hare security to Boy Scouts
TODAY IN THE SKY
ARLINGTON, Va. (AP) — US Airways posted a $13 million profit in its first quarter since emerging from bankruptcy protection, bolstered by a $214 million handout from the government that masked operating losses.
The Arlington-based airline, which emerged from bankruptcy protection March 31, said Monday it suffered in the second quarter of 2003 from a weak economy and the war in Iraq. Still, its $13 million profit was significantly better than the year-ago quarter, when it lost $248 million.
"We have made great strides in executing the key elements of our restructuring plan related to increasing revenue, reducing costs and improving liquidity, all against the backdrop of a challenging industry environment," said company President David Siegel.
Excluding one-time items, including the $214 million payment from the federal government under the 2003 Emergency Wartime Supplemental Appropriations Act, the airline posted pre-tax losses of $154 million, compared to losses of $250 million in the second quarter of 2002.
The company's new stock is not yet publicly traded; airline stocks are still in disfavor with investors, which has forced the company to postpone plans to put the airline on a publicly traded stock exchange.
The company posted improvements in its costs and revenue per available seat mile, both key industry measurements. Revenue increased 1.1% to 11.08 cents per available seat mile compared to the year-ago quarter. The industry averaged a 0.8% increase.
Cost per seat mile, excluding fuel, decreased 2.2%, to 10.75 cents per available seat mile.
The airline increased its cash on hand during the quarter by $157 million, to $2 billion. The money will be used to finance the company's restructuring plan, which calls for a heavy investment in smaller regional jets that will replace unpopular turboprop aircraft on small routes and more expensive regional jets on larger routes.
