US Airways Posts 3Q Loss, Says Economy Improving

JOSHUA FREED

US Airways joined formation with the other big carriers and reported a third-quarter loss on Thursday as it cut fares and flew less.

The carrier lost $80 million as revenue fell 16.6 percent from the same period last year, to $2.72 billion. However, the loss was smaller than analysts expected, and the company said it is seeing signs that business demand is picking up.

Businesses have put air travel on hold during the recession, prompting US Airways and other carriers to push down fares. That has kept seats full but hurt revenue.

The company said the dropoff in both business travel and fares is slowing. President Scott Kirby said revenue from corporate contracts dropped 31 percent in the first quarter, but 17 percent in the third quarter. This month, corporate revenue is down about 7 percent, he said.

Similarly, pricing fell 20 percent in the second quarter, versus 8 percent so far this month.

"As we look out into an improving demand environment, we believe we are in excellent position to capitalize on a recovering economy," CEO Doug Parker said on a conference call.