US Airways Group said it expected demand to improve in the fourth quarter once cautious business travelers get more clarity on the U.S. elections' outcome and the fiscal cliff.
The company's shares were up 4 percent at $10.86 in morning trading on the New York Stock Exchange.
"Leisure demand remains strong and I therefore think business demand is going to return to the levels it was in the March-April time period," President Scott Kirby said at the Dahlman Rose transportation conference in New York on Wednesday.
US Airways LCC.N in July said it had seen a "modest slowdown" in business demand, tied to economic worries.
Kirby said demand in Greece has been particularly weak but Italy, Spain, Portugal and Ireland have continued to perform much like the rest of Europe.
US Airways signed a non-disclosure agreement with American Airlines parent AMR Corp (AAMRQ.PK) last week as they evaluate a potential merger.
(Reporting by Megha Mandavia in Bangalore; Editing by Maju Samuel)