US Airways expects 1Q loss. February 21, 2008 3:04 PM ET
The carrier cites high fuel prices and a softening economy.
US Airways estimates a 1 cent per gallon increase in fuel prices results in a $16 million increase in annual expense.
"In this environment, we currently expect to post a loss for the first quarter of 2008," the airline said in the filing. "In the event this environment continues through 2008, we believe we are well positioned due to our current cash position and the debt restructurings completed over the past two years."
In the first quarter of last year, the airline's net income rose slightly to $66 million, or 70 cents per diluted share, from $65 million, or 76 cents per diluted share, in the year-ago period.
Excluding special items, Arizona-based US Airways (NYSE:LCC) had a net profit of $34 million, or 37 cents per diluted share, in the first quarter of 2007.
As of Dec. 31, US Airways had cash, cash equivalents and investments totaling $3 billion, of which $2.53 billion was unrestricted.
Investments include $353 million of auction-rate securities that are classified as noncurrent assets on the company's balance sheet
The carrier cites high fuel prices and a softening economy.
US Airways estimates a 1 cent per gallon increase in fuel prices results in a $16 million increase in annual expense.
"In this environment, we currently expect to post a loss for the first quarter of 2008," the airline said in the filing. "In the event this environment continues through 2008, we believe we are well positioned due to our current cash position and the debt restructurings completed over the past two years."
In the first quarter of last year, the airline's net income rose slightly to $66 million, or 70 cents per diluted share, from $65 million, or 76 cents per diluted share, in the year-ago period.
Excluding special items, Arizona-based US Airways (NYSE:LCC) had a net profit of $34 million, or 37 cents per diluted share, in the first quarter of 2007.
As of Dec. 31, US Airways had cash, cash equivalents and investments totaling $3 billion, of which $2.53 billion was unrestricted.
Investments include $353 million of auction-rate securities that are classified as noncurrent assets on the company's balance sheet