US Air Turns a Profit - TheStreet

US Air Turns a Profit

The company has a big payment from the government to thank.
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US Airways

turned a profit in the second quarter, reversing a loss in the year-ago quarter, but the carrier's results were boosted substantially by a big payment from the federal government.

The airline reported earnings of $13 million for the second quarter, compared to a loss of $248 million for the same period in 2002. Excluding a $214 million payment from the government and a $35 million charge related to a canceled aircraft delivery, the company recorded a pretax loss of $154 million. US Air had a pretax loss of $250 million in the year-ago second quarter.

Total operating revenue fell to $1.78 billion from $1.90 billion a year ago. US Air emerged from bankruptcy on March 31.

"These results echo what virtually every major network carrier experienced in the second quarter through a combination of a weak economy and the impact of the Iraqi War," David Siegel, US Air's president and chief executive, said in a press release. "Nevertheless, we have made great strides in executing the key elements of our restructuring plan related to increasing revenue, reducing costs, and improving liquidity, all against the backdrop of a challenging industry environment."

Revenue passenger miles for the quarter declined 10.5%, resulting in a passenger load factor of 75.4%, a year-over-year increase of 0.3 percentage points. For the second quarter, US Air's mainline operations carried 10.9 million passengers, down 16.4% from the same period of 2002.

US Air ended the quarter with total restricted and unrestricted cash of $2 billion, including $1.42 billion in unrestricted cash, cash equivalents and short-term investments.