US Airways Reports $80 Million Third Quarter Net Loss
US Airways reported a net loss of $80 million, or ($0.60) per share, for the third quarter of 2009. This compares to a net loss of $866 million, or ($8.46) per share for the same period last year. Excluding special items, the company reported a net loss of $110 million, or ($0.83) per share versus a net loss excluding special items of $243 million, or ($2.36) per share for the same period last year.
US Airways said the effects of fuel hedging significantly impacted the third quarter 2009 results. Excluding special items and net realized losses/gains on fuel hedging transactions, the company reported operating income of $23 million and a net loss of $60 million for its 2009 third quarter. This compares to a third quarter 2008 operating loss of $261 million and net loss of $311 million as measured on the same basis.
The airline said its a la carte revenue initiatives continue to produce impressive results and generated approximately $110 million in revenue during the third quarter. With the previously announced changes to this program, US Airways now estimates that these programs will generate more than $500 million in ancillary revenue on an annualized basis. US Airways said it continues to run an efficient and on-time airline.
On a year-to-date basis it ranks first among the major network carriers in on-time performance as measured by the U.S. Department of Transportation’s Air Travel Consumer Report.
The airline said unit costs continued to decline as mainline cost per available seat mile (CASM) excluding fuel and special items fell 0.3 percent despite a 3.5 percent decline in mainline capacity. On a year-to-date basis, CASM excluding fuel and special items is down 0.6 percent on a 5.5 percent decline in mainline capacity. Total cash and investments on Sept. 30, 2009 was $2 billion, of which $0.5 billion was restricted.
Total revenues in the third quarter were down 16.6 percent versus the third quarter of 2008 due to a 3.6 percent decline in total available seat miles (ASMs), lower yields as a result of aggressive industry-wide fare sales, and the reduction in business demand. Total revenue per available seat mile was 12.08 cents, down 13.5 percent versus the same period last year. Mainline passenger revenue per available seat mile (PRASM) in the third quarter was 9.39 cents, down 17.1 percent versus the same period last year.
Total operating expenses in the third quarter were down 31.3 percent over the same period last year due to a 51.7 percent decrease in mainline and Express fuel expense. Mainline cost per available seat mile (CASM) in the third quarter was 11.00 cents, down 31.3 percent versus the same period last year. Excluding fuel and special items, mainline CASM was 8.06 cents, down 0.3 percent from the same period last year, on a 3.5 percent decline in mainline ASMs.
