http://www.forbes.com/2010/07/21/us-airways-delta-markets-equities-airline.html?partner=yahootix
US Airways Takes Off
Jacquelyn Smith, 07.21.10, 01:25 PM EDT
Increase in business travel and cost discipline help airline beat the Street.
US Airways reported second quarter results this morning and it seems they are flying in the same direction as rival airline Delta Air Lines, which posted earnings Monday.
Excluding special items, US Airways ( LCC - news - people ) reported net profit of $265 million, or $1.34 per share compared to a loss of $95 million, or 77 cents per share last year. The airline beat analysts' expectations on the top and bottom lines, as the consensus call was for profit of $1.18 per share on revenue of $3.2 billion for the second quarter ended June 30.
The Arizona-based company posted a 19.3% increase in revenue to $3.2 billion, from $2.7 billion in the year-ago period. The jump in profits was driven by higher passenger yields thanks to a bump in business travel driven by an economy on the mend, the company said. Revenue per available seat mile was up 18.9% from last year's comparable period.
"It was a strong quarter driven by cost beats," says Stifel Nicolaus & Company analyst Hunter K. Keay. "They are making money and still resisting growth, which is difficult for an airline company to do, Keay continues. "Adding capacity would be the quickest way to derail [the improving cost structure] -- they haven't, and it's reflecting positively in their results."
CEO W. Douglas Parker stated, "We are extremely pleased to report our second highest quarterly profit since our 2005 merger. Over the past three years, US Airways has taken the steps required to return to profitability, including reducing capacity, maintaining cost discipline, increasing ancillary revenues, and establishing industry-leading operational reliability. Those steps, combined with an improving economic environment, have led to these results."
US Airways, along with US Airways Shuttle and US Airways Express, operates more than 3,200 flights per day and serves over 200 communities around the globe. The airline employs more than 31,000 aviation professionals worldwide and serves approximately 80 million passengers each year.
In afternoon trading in New York, investors sent shares of US Airways up 9%, or 80 cents, to $9.71, while shares of rival airline Continental ( CAL - news - people ), which is expected to issue financial results on Thursday, were up .4%, or 9 cents to $23.84. Elsewhere in the industry, Delta ( DAL - news - people ), was down .7%, while Southwest ( LUV - news - people ) and Jetblue ( JBLU - news - people ) rose 1.3% and .3%, respectively.
US Airways Takes Off
Jacquelyn Smith, 07.21.10, 01:25 PM EDT
Increase in business travel and cost discipline help airline beat the Street.
US Airways reported second quarter results this morning and it seems they are flying in the same direction as rival airline Delta Air Lines, which posted earnings Monday.
Excluding special items, US Airways ( LCC - news - people ) reported net profit of $265 million, or $1.34 per share compared to a loss of $95 million, or 77 cents per share last year. The airline beat analysts' expectations on the top and bottom lines, as the consensus call was for profit of $1.18 per share on revenue of $3.2 billion for the second quarter ended June 30.
The Arizona-based company posted a 19.3% increase in revenue to $3.2 billion, from $2.7 billion in the year-ago period. The jump in profits was driven by higher passenger yields thanks to a bump in business travel driven by an economy on the mend, the company said. Revenue per available seat mile was up 18.9% from last year's comparable period.
"It was a strong quarter driven by cost beats," says Stifel Nicolaus & Company analyst Hunter K. Keay. "They are making money and still resisting growth, which is difficult for an airline company to do, Keay continues. "Adding capacity would be the quickest way to derail [the improving cost structure] -- they haven't, and it's reflecting positively in their results."
CEO W. Douglas Parker stated, "We are extremely pleased to report our second highest quarterly profit since our 2005 merger. Over the past three years, US Airways has taken the steps required to return to profitability, including reducing capacity, maintaining cost discipline, increasing ancillary revenues, and establishing industry-leading operational reliability. Those steps, combined with an improving economic environment, have led to these results."
US Airways, along with US Airways Shuttle and US Airways Express, operates more than 3,200 flights per day and serves over 200 communities around the globe. The airline employs more than 31,000 aviation professionals worldwide and serves approximately 80 million passengers each year.
In afternoon trading in New York, investors sent shares of US Airways up 9%, or 80 cents, to $9.71, while shares of rival airline Continental ( CAL - news - people ), which is expected to issue financial results on Thursday, were up .4%, or 9 cents to $23.84. Elsewhere in the industry, Delta ( DAL - news - people ), was down .7%, while Southwest ( LUV - news - people ) and Jetblue ( JBLU - news - people ) rose 1.3% and .3%, respectively.
