US Airways reports significantly reduced 2009 loss

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bimjim
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US Airways reports significantly reduced 2009 loss

Unread post by bimjim » Fri Jan 29, 2010

http://www.atwonline.com/news/story.html?storyID=19204

Restructuring US Airways reports significantly reduced 2009 loss
Friday January 29, 2010

A year in which US Airways unveiled ambitious plans to reconfigure its airline operation ended with a $205 million net loss that was a significant improvement from the $2.22 billion deficit reported in 2008.

A series of special items, including a $375 million unrealized gain on its fuel hedges, contributed to the result. Excluding those items, the group suffered a full-year loss of $499 million compared to a 2008 loss of $808 million calculated on a similar basis.

Chairman and CEO Doug Parker said the results "reflect the extremely difficult environment" in 2009 and the company is "particularly pleased" with the improvement. "The actions we have put in place to address the challenges of the past two years--capacity cuts, a la carte revenues, cost control and a commitment to efficient operating reliability--are working. We enter 2010 with encouraging momentum and well-positioned to take advantage of the improving economic environment," he said. US collected approximately $425 million in a la carte revenue last year and expects an increase of some 24% in 2010.

Three months ago, the company announced elimination of 1,000 jobs in the first half of 2010 and a realignment of its network that will focus almost entirely on its Phoenix, Charlotte and Philadelphia hubs and Washington National base (ATWOnline, Oct. 29, 2009). Crew bases at Las Vegas and New York LaGuardia will close this weekend and in early May respectively and several long-haul flights will be cut. In late November, it announced the deferral of 54 of the 72 aircraft it was scheduled to receive from Airbus in 2010-12 (ATWOnline, Nov. 25). Executive VP and CFO Derek Kerr said US will return five 757s, five 737s and four E-190s this year and end 2010 with 339 mainline aircraft.

Full-year operating revenue fell 13.7% to $10.46 billion while costs were slashed 25.7% to $10.34 billion. Operating result reversed to a $118 million profit from a $1.8 billion loss in 2008. The company operated 632 aircraft at year end (349 mainline), down from 650 at the close of 2008.

The group flew a combined 68.46 billion RPMs last year, down 4.2%, against a 4.5% cut in capacity to 85.09 billion ASMs. Load factor inched up 0.3 point to 80.5%. Yield was down 12.7% to 13.52 cents and passenger RASM fell 12.4% to 10.88 cents. Operating CASM was cut 22.2% to 12.15 cents. It expects capacity to rise slightly this year, with a 1% domestic mainline decrease and a 9% rise in international ASMs.

In the fourth quarter US reported a $79 million loss, reduced 85.3% year-over-year from a $543 million deficit. Operating result swung to a $14 million profit from a $378 million loss on a 4.9% slip in revenue to $2.63 billion.

by Brian Straus

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