Fitch revises US Airway's outlook to positive

[700UW]

Fitch revises US Airway's outlook to positive
Fri Apr 21, 2006 12:40 PM ET
NEW YORK, April 21 (Reuters) - Fitch Ratings on Friday changed its outlook on US Airways Group Inc. (LCC.N: Quote, Profile, Research), parent of low-cost carrier US Airways, to positive from negative, citing improvements in the company's liquidity and debt maturity profile.

"The improving domestic revenue environment has strengthened US Airways' liquidity position," Fitch said in a statement.

"Domestic-capacity reductions resulting from the Delta and Northwest bankruptcies, the liquidation of Independence Air and US Airways' own capacity pull-back, have driven the first meaningful improvements in domestic industry unit revenue since the post-September 11 collapse," the ratings agency said.

A positive outlook indicated the company's rating is likely to be raised over the next one-to-two years.

Continued domestic industry capacity discipline and heavy demand should result in ongoing revenue improvement throughout 2006, though jet fuel prices will continue to be a potential spoiler this year, Fitch said.

Fitch ranks U.S. Airways' senior unsecured debt "CC," ten steps below investment grade.

 

[LCC_#1]

How fitting that nobody reponds to positive outlooks....typical. B)

 

[AIRWOMAN]

In all fairness the outlook for a particular stock has little short term to do with employee morale ro improving their financial fortunes.

It is the long term positive preformance that will in fact trickle down to the rank and file.

That doesn't mean we shouldn't be heartened by these positive announcements, just not dancing in the streets excited.

That's too funny. Financial fortunes.........not in the lower ranks of aviation. I can only speak for myself, but I'm not in it for the money. It's been comfortable but I am definitely not on the road to any fortunes. And you're right on the money about morale.

 

[ClueByFour]

How fitting that nobody reponds to positive outlooks....typical. B)

Continued domestic industry capacity discipline and heavy demand should result in ongoing revenue improvement throughout 2006, though jet fuel prices will continue to be a potential spoiler this year, Fitch said.

Since fitch wrote that, oil is at $75/bbl. That's anywhere from $15-$25 more per bbl than Parker's stated plan.

Fitch ranks U.S. Airways' senior unsecured debt "CC," ten steps below investment grade.

Everything is relative.

 

[FM2436]

Three straight months of 20%+ revenue per available seat mile growth.

http://yahoo.businessweek.com/investor/con...0424_834757.htm

 

[john john]

Three straight months of 20%+ revenue per available seat mile growth.

http://yahoo.businessweek.com/investor/con...0424_834757.htm

Mainline or Express or Both ?