US Airways says fuel sliced into 2Q profit

AP News
|
Posted: Jul 21, 2011 10:58 AM
US Airways says fuel sliced into 2Q profit

US Airways said Thursday that rising fuel expenses pushed its second-quarter profit down 67 percent.

Airlines have been raising fares to make up for bigger fuel bills. That has covered some of the cost of fuel, but not all.

Its net income was $92 million, or 49 cents per share, down from $279 million a year earlier. Adjusted profit and revenue matched the expectation of analysts surveyed by FactSet.

Revenue rose more than 10 percent, to $3.5 billion. But fuel rose faster _ up 47 percent from a year earlier, or $424 million. Airlines have been raising fares to cover those higher fuel prices, but they can't always keep up _ and they have to be careful not to scare passengers away with big fare increases.

Traffic rose 4.4 percent during the quarter. Passenger revenue for each seat flown one mile _ a key measure of airline revenue _ rose 7.6 percent.

Shares of US Airways Group Inc. fell 10 cents to $6.80 in morning trading.