US Airways story updated with stock price movement.

TEMPE, Arizona ( TheStreet) -- US Airways ( LCC) surged past estimates and reported its first profitable fourth quarter since 2006.

In late-morning trading Wednesday, the company's shares were surging 7.8% to $10.92.

Net income was $28 million, or 17 cents a share. Analysts surveyed by Thomson Reuters had estimated earnings of 6 cents a share. Revenue rose 10.7% to $2.9 billion, in line with estimates.

In the same quarter a year earlier, the carrier reported a net loss excluding special items of $32 million, or 20 cents a share.

"These financial results came about because of your hard work and attention to things like keeping our costs low, putting new ancillary revenue programs into place and executing on those programs, running an outstanding airline that operates on-time and reliably every day, and an improving economic environment," said CEO Doug Parker, in a message to employees.

During the quarter, revenue per available seat mile rose 6.2%. The carrier credited "a modestly improving economy and continued industry capacity discipline." On the cost side, cost per available seat mile, excluding fuel and special items, fell by 1.7%.

US Airways said that it expects to rank No. 1 among network peers in on-time departures and in baggage handling during 2010, and No. 2 in on-time arrivals. United ( UAL) said Wednesday that it will rank No. 1 in on-time arrivals.

-- Written by Ted Reed in Charlotte

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