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US Airways Group, Inc. reports second quarter profit
US Airways Group, Inc. reported its second quarter 2007 results. Net profit for the second quarter was $263 million, or $2.77 per diluted share, compared to a net profit of $305 million, or $3.25 per diluted share for the same period last year. Excluding net special items of $2 million, the Company reported a net profit of $261 million, or $2.74 per diluted share. This compares to a net profit of $315 million, or $3.35 per diluted share in the second quarter of 2006, which excludes a net credit for special items of $10 million.

US Airways Group Chairman and CEO Doug Parker stated, We are very pleased to report our sixth consecutive quarter of profitability. We are especially pleased with our performance relative to our industry. Our first half 2007 pretax profit margins excluding special charges are the highest among the major network airlines that have reported thus far.

While our earnings were lower than last year`s second quarter, this was largely related to increased expenses associated with the operational improvement plan we announced last quarter and put into place this summer. That plan is working as our second quarter operational reliability has improved versus the first quarter and has continued to improve into the third quarter.

Key to those operational improvements, of course, are our employees who have done an outstanding job of taking care of our customers. We`re delighted to have accrued $34 million for profit sharing in the first half of this year and look forward to adding to that amount as the year progresses.

Although high fuel prices will continue to have a material financial impact on our company, we are encouraged by the strengthening revenue environment and industry capacity outlook. Looking forward, we maintain our projections of profitability for the third quarter and full-year 2007, concluded Parker. Vicky Karantzavelou - Friday, July 27, 2007