US Airways posts profit
ARLINGTON, Va. (AP) – US Airways posted a $13 million profit in its first quarter since emerging from bankruptcy protection, bolstered by a $214 million handout from the government that masked operating losses. The Arlington-based airline, which emerged from bankruptcy protection March 31, said Monday it suffered in the second quarter of 2003 from a weak economy and the war in Iraq. Still, its $13 million profit was significantly better than the year-ago quarter, when it lost $248 million. “We have made great strides in executing the key elements of our restructuring plan related to increasing revenue, reducing costs and improving liquidity, all against the backdrop of a challenging industry environment,” said company President David N. Siegel.
Excluding one-time items, including the $214 million payment from the federal government under the 2003 Emergency Wartime Supplemental Appropriations Act, the airline posted pre-tax losses of $154 million, compared to losses of $250 million in the second quarter of 2002.
The company’s new stock is not yet publicly traded. During a conference call Monday afternoon, chief financial officer Neal S. Cohen said company executives “have been and visited with the various stock exchanges, and we are evaluating our options” concerning possible listing of the new stock.
Siegel acknowledged that the results for the quarter were “less than stellar” but noted that US Airways outperformed the airline industry as a whole on some key measures despite a “weak industry backdrop” that he blamed in part on the Iraqi war.
“We have been building some very positive momentum and are encouraged by the results,” he said.
The company posted improvements in its costs and revenue per available seat mile. Revenue increased 1.1 percent to 11.08 cents per available seat mile compared to the year-ago quarter. The industry averaged a 0.8 percent increase.
Cost per seat mile, excluding fuel, decreased 2.2 percent, to 10.75 cents per available seat mile.
The airline increased its cash on hand during the quarter by $157 million, to $2 billion. The money will be used to finance the company’s restructuring plan, which calls for a heavy investment in smaller regional jets that will replace unpopular turboprop aircraft on small routes and more expensive regional jets on larger routes.