Hospitality Leaders Hospitality Leaders Menu 0
Google Translate
Hospitality Industry News

US Airways Reports Third Quarter Results

Profile Photo By: H L
October 24, 2012

US Airways Reports Third Quarter Results

Highest Third Quarter Earnings in Company History; Second Highest Excluding Special Items

Highlights of US Airways Group, Inc.’s (the Company) third quarter 2012 results:

  • The Company reported a third quarter net profit excluding special items of $192 million, the second highest third quarter profit excluding special items in Company history. This compares to the Company’s third quarter 2011 net profit excluding special items of $95 million.
  • On a GAAP basis, the Company reported a record third quarter net profit of $245 million versus the third quarter 2011 net profit of $76 million.
  • Year-to-date, the Company has accrued $54 million for its annual employee profit sharing program. In addition, US Airways’ team members have earned approximately $17 million in operational incentive payouts related to the Company’s outstanding operational performance.

US Airways Group, Inc. (NYSE: LCC) today reported its third quarter 2012 financial results. For the third quarter 2012, the Company reported a net profit excluding special items of $192 million, or $0.98 per diluted share, the second highest third quarter profit excluding special items in Company history. This compares to $95 million, or $0.51 per diluted share in the Company’s third quarter 2011. On a GAAP basis, the Company reported a record net profit of $245 million for its third quarter 2012, or $1.24 per diluted share, compared to a net profit of $76 million, or $0.41 per diluted share, for the same period in 2011.

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, “The 32,000 hard-working people of US Airways are doing a phenomenal job. We are setting Company records in all the operational metrics that matter to our customers, including completion factor, on-time arrivals and baggage handling. This record operating reliability is driving strong customer demand and keeping costs in check, resulting in outstanding financial performance.

“Looking forward, the revenue environment remains strong. As evidenced by these outstanding financial and operational results, US Airways is extremely well-positioned for the remainder of 2012 and beyond,” concluded Parker.

Revenue and Cost Comparisons

Strong passenger demand and record consolidated third quarter yields led to improved revenue performance. Total revenues in the third quarter were a record $3.5 billion, up 2.8 percent versus the third quarter 2011 on a 2.7 percent increase in total available seat miles (ASMs). Total revenue per ASM was a record 15.22 cents, up 0.1 percent versus the same period last year, driven by a 0.6 percent increase in passenger yields.

Total operating expenses in the third quarter were $3.3 billion, up 0.3 percent over the same period last year. Mainline cost per available seat mile (CASM) was 12.70 cents, down 1.8 percent on a 2.8 percent increase in mainline ASMs. Total average fuel price per gallon fell 2.4 percent versus last year to $3.07 per gallon. Excluding special charges, fuel, and profit sharing mainline CASM was 7.95 cents, down 1.4 percent versus the same period last year. Express CASM excluding special charges and fuel was 13.97 cents, down 4.5 percent on a 2.4 percent increase in Express ASMs.

Liquidity

As of September 30, 2012, the Company had $2.8 billion in total cash and investments, of which $347 million was restricted. That is up from $2.4 billion, of which $384 million was restricted, on September 30, 2011.

Special Items

The Company recognized $14 million of net operating special charges in the third quarter of 2012, primarily consisting of charges related to corporate transaction and auction rate securities arbitration costs. In addition, the Company recorded $67 million of net nonoperating special credits which included a $69 million gain related to the slot transaction with Delta Air Lines, Inc.

Notable Accomplishments

Operational Achievements

  • Received a number one ranking by the U.S. Department of Transportation (DOT) in on-time performance among the four network carriers for the month of July, earning employees a $50 Triple Play incentive program payout. Year-to-date the airline has accrued $17 million for operational incentive payouts for its employees.
  • Contributed to greenhouse gas emission reductions by expanding a fleet of electric ground support equipment at the airline’s Philadelphia hub. By year’s end, almost 40 percent of all ground support vehicles at Philadelphia will be electric, which surpasses all other East Coast airports.

Marketing and Customer Enhancements

  • Began TSA PreCheck operations in its hub cities of Phoenix and Philadelphia, which provide expedited security screening service for select travelers. Earlier in the year this service began at the airline’s Charlotte hub and at Washington, D.C.’s Reagan National Airport.
  • Received permanent authority to operate daily, nonstop service between Mississippi’s capital city, Jackson, and Reagan National Airport by the DOT. The route, which US Airways has flown since March 4 under temporary authority from the DOT, is the only nonstop service linking the State of Mississippi to the nation’s capital.
  • Began new daily, non-stop service from Philadelphia International Airport to Austin-Bergstrom International Airport and San Antonio International Airport. Customers in two of the largest cities in Texas now have more convenient access to Philadelphia and other destinations throughout the East Coast, Canada and Europe.
  • Became the first domestic carrier to offer a premium meal option in Economy class on international flights. US Airways also refreshed its MarketPlace Menu with new snacks and beverages.

Corporate Citizenship

  • Celebrated the 15th anniversary of the Do Crew, US Airways’ corps of employee volunteers. Since its inception in 1997, thousands of employee volunteers have donated more than 150,000 hours of community service to nonprofits around the country.
  • As part of a campaign called “30 Days for D.C.,” which kicked off the airline’s expanded service at Washington D.C, the Company presented the USO of Metropolitan Washington with a check for $10,000 and members of the Do Crew served pizza to active duty service members at DCA. Members of the Do Crew also teamed up with Keep America Beautiful to beautify the National Mall.
  • Hosted the US Airways Education Foundation’s first Suitcase Soir?e in Charlotte, N.C. and raised more than $60,000 for scholarships and educational grants in the airline’s hub and focus cities.
  • Kicked off its annual “Hope Takes Flight” campaign benefiting the United Way with a goal of raising $1.4 million for those in need.
  • Received from LATINA Style magazine the recognition of being named a Top 50 employer for the third year in a row; US Airways was the only airline named in the survey.

Analyst Conference Call/Webcast Details

US Airways will conduct a live audio webcast of its earnings call today at 12:30 p.m. ET, which will be available to the public on a listen-only basis at www.usairways.com under the Company Info >>Investor Relations tab. An archive of the call/webcast will be available in the Investor Relations portion of the website through Nov. 24.

2012 Investor Guidance

The Company will also update its investor relations guidance on its website (www.usairways.com) immediately following its 12:30 p.m. ET conference call. The Company typically provides guidance related to cost per available seat mile (CASM) excluding special charges, fuel and profit sharing, fuel prices, other revenues and estimated interest expense/income on its investor relations update page on its website. This update will also include the airline’s capacity, fleet plan and estimated capital spending for the remainder of 2012.

 

Source: US Airways

Suggested news

all access

Get full access to the hospitality industry news.

Sign up now. It’s free
Or import your details from