Thursday, April 23, 2009 | 6:33 a.m.
US Airways Group Inc. 1Q 2009
| 1Q 2009 | 1Q 2008 | % change | 4Q 2008 | |
|---|---|---|---|---|
| Revenue | $2.455 billion | $2.84 billion | -13.5% | $2.76 billion |
| Earnings | ($103 million) | ($237 million) | -- | ($541 million) |
| Earnings per share | (90 cents) | (2.58) | -- | ($4.74) |
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At a Glance . . .
+ By passenger volume, US Airways is the No. 2 carrier at McCarran International Airport.
+ With fuel prices down 53.2 percent for the quarter, overall expenses fell 18.3 percent.
- The airline today announced a program to prepay baggage fees of $15 for the first bag and $25 for the second online 24 hours in advance of a flight with an additional $5 charged at the airport.
+ Ancillary revenue of $400 million to $500 million is expected to be generated this year.
+ “Our first quarter loss reflects the weakness in the global economy that has negatively impacted revenues throughout our industry. The steps we have taken to adapt to this environment are having a significant positive impact, though, as evidenced by our significant improvement in earnings excluding special items and fuel hedges.” – CEO Doug Parker
- US Airways stock had 52-week lows March 2 ($2.45) and March 3 ($1.97).
- April 22 stock price: $4.36 (52-week high: $11.24)
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Tempe, Ariz.-based US Airways, the second-busiest air carrier at McCarran International Airport, reported shallower losses in first-quarter earnings posted today.
The airline reported a loss of $103 million, 90 cents a share, on revenue of $2.455 billion for the quarter ended March 31. The company had a loss of $237 million, $2.58 a share, on revenue of $2.84 billion in the same quarter a year ago. In the fourth quarter of 2007, US Airways had a $541 million loss.
CEO Doug Parker attributed the loss to the global economy, but said his company has taken steps to improve performance.
“We’ve had great success with a la carte pricing and our relatively higher domestic enplanements versus our largest competitors means that we have a greater ability to capitalize on this opportunity both in the current economic environment and also when the economy turns around,” Parker said. “We’ve pulled down an appropriate amount of capacity and will explore additional reductions if the economic environment warrants such action. And, we’ve raised new capital in a very tight capital market to help withstand a prolonged economic downturn.”
Capacity reductions, while helping the airline maintain stability, has been a detriment to service at McCarran with US Airways’ presence falling by nearly half in the last year. The airline closed its night hub operation at McCarran last summer and more than 60 jobs were eliminated.
Parker said US Airways was on the losing end of fuel-hedging contracts. Excluding net special credits and net realized losses on fuel-hedging transactions, the company reported operating income of $8 million and a net loss of $63 million for the quarter. That compared to an operating loss and net loss of $287 million and $321 million, respectively, for the same period last year.
The company also announced a new online baggage fee payment program today. Passengers checking in 24 hours in advance of a flight will be able to pay fees of $15 for a first bag and $25 for a second on the company’s Web site. Paying fees at the airport on the day of the flight will add an additional $5 to the cost.
US Airways expects to generate between $400 million and $500 million in ancillary revenue in 2009.
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