US Airways Reports Profit on Rising Fares
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US Airways Group Inc., which left bankruptcy protection in September by merging with America West Airlines, reported a first-quarter profit as higher fares boosted revenue.
Net income was $65 million, or 76 cents a share, on sales of $2.65 billion, Tempe, Ariz.-based US Airways said. The results prompted at least three analysts to raise their estimates for full-year profit, and shares jumped 9.2% to a record. The company didn’t provide year-ago comparisons that combined results at US Airways and America West.
US Airways saved money by shedding aircraft, dropping unprofitable routes and combining America West’s operations with its own. A reduction in available seats industrywide allowed the company to raise fares and join Southwest Airlines Co. as the only major U.S. carriers to post a first-quarter profit.
Management “is doing a commendable job in controlling costs, but even more importantly, raising yields in the old US Airways system,” Ray Neidl, an analyst for Calyon Securities, said in a report.
US Airways Chief Executive W. Douglas Parker said the company would have a full-year 2006 profit, even after merger expenses and fuel costs.
Shares of US Airways rose $4.33 to $51.63.
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