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HomeAviationUS Airways Group reports second quarter 2009 financial results
The company reported a net profit of $58 million

US Airways Group reports second quarter 2009 financial results

US Airways Group, Inc. reported its second quarter 2009 results. For the second quarter, the company reported a net profit of $58 million, or $0.42 per diluted share. This compares to a net loss of $568 million, or ($6.17) per share for the same period last year. Excluding special items, the Company reported a net loss of $95 million for its second quarter 2009, or ($0.77) per share. This compares to a net loss excluding special items of $102 million, or ($1.12) per share for the same period last year.

The effects of fuel hedging continue to significantly impact the Company’s financial results. The Company believes an enhanced understanding of fundamental year-over-year financial performance can be gained by adjusting for these hedging impacts. In the second quarter 2008, the Company reported a realized fuel hedging gain of $192 million, while in the second quarter of 2009, the Company reported a realized fuel hedging loss of $135 million. Excluding these net realized losses/gains on fuel hedging transactions and special items, the Company reported a net profit of $40 million for the second quarter 2009 versus a net loss of $294 million for the same period last year.

US Airways Group, Inc. Chairman and CEO Doug Parker stated, “We are pleased to report a second quarter GAAP profit, as well as a profit excluding special items and fuel hedging transactions, particularly in this difficult economic environment. The global economic recession severely impacted business demand for air travel, which drove our revenues down by more than 18 percent versus last year.



“At US Airways, we took aggressive action to address this weakening demand by reducing capacity, introducing additional a la carte revenue streams, and prudently controlling costs. These steps are having a positive impact as evidenced by our $334 million year-over-year improvement in earnings excluding special items and fuel hedging transactions. We also raised new capital and increased our cash balance to help withstand a prolonged economic downturn.



“Importantly, our team of 33,000 employees continues to run a great operation. While operating one of the most efficient schedules of the major hub-and-spoke carriers, on a year-to-date basis, US Airways posted an on-time arrival rate of 79 percent, improved baggage handling by more than 40 percent, and reduced customer complaint metrics by 30 percent versus the same period last year – all while operating at record load factors.



“Looking forward to the second half of 2009, the revenue environment continues to be difficult to forecast. We have seen an encouraging, though modest improvement in revenues over the past several weeks, but we are not counting on a quick recovery. Instead, we are preparing for a continued difficult environment and believe the steps we have taken and the outstanding work of our team have us extremely well positioned to meet the challenges ahead,” concluded Parker.

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