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US Airways Group, Inc. reported its second quarter financial results. On a GAAP basis, the company reported a net profit of $279 million for its second quarter 2010, or $1.41 per diluted share, compared to a net profit of $58 million, or $0.42 per diluted share, for the same period in 2009.
Excluding special items totaling a credit of $14 million, net profit for the second quarter 2010 was $265 million, or $1.34 per diluted share. Net loss excluding special items for the second quarter 2009 was $95 million, or ($0.77) per share.
See the accompanying notes in the Financial Tables section of this press release for a reconciliation of GAAP financial information to non-GAAP financial information.
US Airways Group, Inc. Chairman and CEO Doug 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.
"This turnaround is due in large part to the efforts of our 31,000 hard-working team members. We continue to do an outstanding job of taking care of our customers, including ranking first among the five network airlines for the month of May in on-time performance, baggage handling and customer satisfaction as measured by the U.S. Department of Transportation (DOT). We are particularly pleased that today’s results include an $18 million accrual for employee profit sharing and $9 million for our team members in operational incentive payments."
Revenue and Cost Comparisons
Total revenues in the second quarter were up 19.3 percent versus the second quarter 2009. This improvement was driven by higher passenger yields due to an improving economy resulting in greater demand for business travel. Total revenue per available seat mile was 14.37 cents, up 18.9 percent versus the same period last year.
Total operating expenses in the second quarter were up 10.4 percent over the same period last year due primarily to a 38.7 percent increase in mainline and Express fuel expense. Mainline cost per available seat mile (CASM) in the second quarter was 11.48 cents, up 10.0 percent versus the same period last year. Excluding fuel and special items, mainline CASM was 8.18 cents, up 0.5 percent from the same period last year, on a 0.7 percent increase in mainline ASMs. Excluding fuel, special items and profit sharing, mainline CASM was 8.08 cents, down 0.7 percent from the same period last year. Express CASM excluding fuel and special items was 13.49 cents, up 3.3 percent on a 1.3 percent decline in ASMs.
Business Outlook
Parker continued, "We are encouraged by the economic recovery we have seen thus far, and are extremely pleased with our team’s results. Looking forward, and based on current business and economic conditions, we expect to report a profit for the third quarter and full year 2010."
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
