US Airways Tops Estimates on Strong Demand

TEMPE, Ariz. (TheStreet) -- US Airways (LCC) reported its highest quarterly profit, reflecting strong demand for air travel, and beat analysts' estimates.

Excluding items, net profit was $321 million, or $1.61 a share. Analysts surveyed by Thomson Reuters had estimated $1.56 a share. Revenue rose 7.2% to $3.8 billion.

In the same quarter a year earlier, net profit excluding items was $106 million, or 56 cents a share.

Including items, net profit was $306 million, or $1.54 a share, compared with $92 million, or 49 cents a share, in the same quarter a year earlier.

"We are extremely pleased to report the highest quarterly profit in our company's history," said CEO Doug Parker, in a prepared statement. "Consumer demand for our product remained strong during the second quarter, resulting in record revenue, passenger yields, and unit revenue performance.

"These financial and operating results are not only the best in US Airways' history but also among the very best in the industry, proving that US Airways is well-positioned for the remainder of 2012 and beyond," Parker said.

During the quarter, capacity grew 1% and revenue per available seat mile rose 6.1% to a record 16.30 cents, driven by a 7.4% increase in passenger yields. On the cost side, mainline cost per available seat mile excluding fuel and special items rose 1.1% to 8.25 cents.

As of June 30, US Airways had $2.9 billion in total cash and investments, of which $393 million was restricted, up from $2.6 billion with $388 million restricted a year earlier.

-- Written by Ted Reed in Charlotte, N.C.

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