US Airways loss narrows on capacity cuts and fuel
By Kyle Peterson
CHICAGO (Reuters) - US Airways Group (LCC.N: Quote, Profile, Research) on Thursday reported a quarterly loss on weaker travel demand, but the loss narrowed 57 percent on capacity cuts made throughout the airline industry to combat wilting demand.
JetBlue Airways (JBLU.O: Quote, Profile, Research), meanwhile, reported a quarterly net profit, reversing a year-ago loss. Alaska Air Group (ALK.N: Quote, Profile, Research) reported a net loss that had narrowed year over year.
Despite $1.78 billion in net losses reported by the top six U.S. airlines in the last two weeks, analysts hoped that massive industry downsizing would lead to 2009 profits.
"The U.S. airline industry has done what it has had to do to get back to some level of profitability," said Helane Becker, an airline analyst at Jesup & Lamont.
Shares of US Airways were up 8.5 percent at $4.73 on the New York Stock Exchange. JetBlue Shares were up 3 percent at 5.75 on Nasdaq. Alaska Air shares were down 7.7 percent at $18.35 on NYSE. The Amex airline index .XAL was flat.
US AIRWAYS BEATS FORECASTS
US Airways' net loss amounted to $103 million, or 90 cents per share, compared with a loss of $237 million, or $2.58 per share, a year ago.
Special items included a $170 million unrealized net gain associated with the change in fair value of the company's fuel hedge contracts. Continued...
One Year Later
Mumbai held tearful memorials and police staged a show of strength as it marked the first anniversary of militant raids that killed 166 people and pushed up tensions with Pakistan. Slideshow | Full Coverage
Liberhan Commission Report
The government published a long awaited report, recently leaked, accusing BJP leaders of a role in the 1992 destruction of the Babri mosque in Ayodhya. Full Article
