US Airways looking strong after merger
Airline has seen stock price double, 2Q profit
STEVE HARRISON
[email protected]
The reborn US Airways quietly celebrated its birthday Wednesday -- a year since its merger with America West.
The Tempe, Ariz.-based airline has had a better year than expected, though fully integrating the two airlines -- and their computer systems -- remains a challenge Wall Street is watching.
US Airways Group has a self-imposed May deadline to operate as a single airline.
The stock price is up to $45 a share, from less than $20 a year ago. There have been no major roadblocks in the merger so far, though some consumers have complained about poor service. The airline announced Wednesday that its fuel costs are projected to drop.
And the airline, whose largest hub is in Charlotte, posted a second-quarter profit of $305 million -- one of the best performances in the industry.
That windfall has raised expectations among pilots and other employees for restoring much of the wage and salary concessions made during US Airways' two bankruptcies this decade. Pilots have planned an informational picket Nov. 16 at airports in Charlotte and Phoenix. They will hand out fliers to passengers listing their grievances.
"(That profit) makes it hard for the airline to say they can't afford it," said New York airline consultant Robert Mann, who is advising America West pilots on how they should merge the seniority lists with US Airways pilots.
The airline, in a filing Wednesday to the Securities and Exchange Commission, said its fuel prices will likely peak during the third quarter, at between $2.18 and $2.23 a gallon. The good news is that the airline projects its fuel costs to drop to between $2 and $2.05 in the fourth quarter.
However, US Airways will not take advantage of all of those savings. The filing also noted that the airline has hedged nearly half of its fuel -- 44 percent -- for the fourth quarter at a price that's now higher than the market rate.
Flight Attendants Contract: No Cost Neutral!
Airline has seen stock price double, 2Q profit
STEVE HARRISON
[email protected]
The reborn US Airways quietly celebrated its birthday Wednesday -- a year since its merger with America West.
The Tempe, Ariz.-based airline has had a better year than expected, though fully integrating the two airlines -- and their computer systems -- remains a challenge Wall Street is watching.
US Airways Group has a self-imposed May deadline to operate as a single airline.
The stock price is up to $45 a share, from less than $20 a year ago. There have been no major roadblocks in the merger so far, though some consumers have complained about poor service. The airline announced Wednesday that its fuel costs are projected to drop.
And the airline, whose largest hub is in Charlotte, posted a second-quarter profit of $305 million -- one of the best performances in the industry.
That windfall has raised expectations among pilots and other employees for restoring much of the wage and salary concessions made during US Airways' two bankruptcies this decade. Pilots have planned an informational picket Nov. 16 at airports in Charlotte and Phoenix. They will hand out fliers to passengers listing their grievances.
"(That profit) makes it hard for the airline to say they can't afford it," said New York airline consultant Robert Mann, who is advising America West pilots on how they should merge the seniority lists with US Airways pilots.
The airline, in a filing Wednesday to the Securities and Exchange Commission, said its fuel prices will likely peak during the third quarter, at between $2.18 and $2.23 a gallon. The good news is that the airline projects its fuel costs to drop to between $2 and $2.05 in the fourth quarter.
However, US Airways will not take advantage of all of those savings. The filing also noted that the airline has hedged nearly half of its fuel -- 44 percent -- for the fourth quarter at a price that's now higher than the market rate.
Flight Attendants Contract: No Cost Neutral!
