This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

US Airways Calls for Consolidation

US Airways (LLC) is calling for consolidation in the market.

CEO Doug Parker said during the company's annual meeting that the airline industry needs to get much smaller to stay in the air and swing back to profit.

The merger of Delta Air Lines and Northwest Airlines (NWA) was a step in the right direction. But the consolidated company holds less than one-quarter of the U.S. market, leaving room for more mergers, Parker said.

But where will US Airways place if the industry shrinks?

United Airlines (UAUA) passed on a deal last year to combine with US Airways, but the deal is not completely off the table.

During the meeting, Parker also reiterated US Airways' goal to earn $400 million to $500 million this year by charging for extras such as checked bags and choice seating. These additional fees are permanent and have helped offset steep declines last year from higher fuel prices and this year's turn in the economy.

Parker says the fees are a win-win situation. While additional charges reduced the number of checked bags by 20%, it allowed baggage-handling systems to operate more efficiently. (We'd call it a win-win-lose; you are, after all, now paying for something that used to be free.) Data released by the Transportation Department on Tuesday showed nearly 80% of US Airways nonstop flights were on time in April, making the carrier ninth of 19 airlines reporting those results.

Shares of US Airways tumbled 4% to $2.64 in afternoon trading.
Copyright 2009 Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.24 0.00%
FB $117.81 0.00%
GOOG $701.43 0.00%
TSLA $211.53 0.00%
YHOO $36.94 0.00%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs