US Airways Group Inc. (LCC: Quote) Wednesday reported a surge in profit for the fourth quarter, as a robust demand environment and strong passenger yields buoyed up revenues, despite some operational havoc created by superstorm Sandy. US Airways’ earnings for the quarter easily topped Street estimates, while revenues were in line with expectations.
Moving ahead, the company, which is the fifth largest in the U.S. by revenue, said prospects appear bright.
US Airways has been ramping up its capacity amid a strong demand scenario and its optimism has made it pursue a potential merger with AMR Corp. (AAMRQ.PK), the parent company of American Airlines, which filed for bankruptcy last November.
US Airways said its revenue passenger miles (RPM), or traffic, for the fourth quarter increased 3.8 percent from last year to 17.64 billion RPMs. Available seat miles (ASM), or capacity, edged up 1.4 percent to 21.04 billion ASMs. Total revenue per ASM improved 2.5 percent to 15.58 cents.
Passenger load factor for the quarter improved 2 percent to 83.9 percent, and passenger enplanements climbed 3 percent from last year to 20.5 million.
The Tempe, Arizona-based US Airways reported fourth-quarter net income of $37 million or $0.22 per share, compared with $18 million or $0.11 per share last year.
Excluding items, adjusted earnings for the quarter were $46 million or $0.26 per share, compared with $21 million or $0.13 per share in the prior year.
On average, 14 analysts polled by Thomson Reuters expected earnings of $0.19 for the quarter. Analysts’ estimates typically exclude special items.
Results for the quarter were negatively impacted by about $35 million due to superstorm Sandy.
Total revenues for the quarter increased about 4 percent to $3.28 billion from $3.16 billion a year ago. Analysts expected revenue of $3.28 billion for the quarter.
Total operating expenses were higher at $3.16 billion, compared with $3.05 billion a year ago.
AMR last week said it turned around to a quarterly profit after recording one-time gains of $350 million, related to tax benefit and the settlement of a commercial dispute.
US Airways is trading at $15.14, up 1.92%, on a volume of 4.3 million shares on the NYSE.
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by RTT Staff Writer
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