US Airways reports highest quarterly profit in company history
TEMPE, Ariz. - US Airways Group, Inc. today reported its second quarter 2012 financial results.
TEMPE, Ariz. – US Airways Group, Inc. today reported its second quarter 2012 financial results. For the second quarter 2012, net profit excluding net special charges was a record $321 million, or $1.61 per diluted share versus $106 million, or $0.56 per diluted share in the Company’s second quarter 2011. On a GAAP basis, the Company reported a record net profit of $306 million for its second quarter 2012, or $1.54 per diluted share, compared to a net profit of $92 million, or $0.49 per diluted share, for the same period in 2011.
US Airways Group, Inc. Chairman and CEO Doug Parker stated, “We are extremely pleased to report the highest quarterly profit in our company’s history. Consumer demand for our product remained strong during the second quarter, resulting in record revenue, passenger yields, and unit revenue performance.
“These results speak volumes about the collective efforts of our 32,000 employees, who continue to run an outstanding airline for our customers. Thanks to their hard work, we have set numerous Company records in operating reliability, including our best-ever year-to-date performance in on-time arrivals, baggage handling and completion factor.
“These financial and operating results are not only the best in US Airways’ history but also among the very best in the industry, proving that US Airways is well-positioned for the remainder of 2012 and beyond,” concluded Parker.
Revenue and Cost Comparisons
Strong passenger demand and record passenger yields led to improved revenue performance. Total revenues in the second quarter were a record $3.8 billion, up 7.2 percent versus the second quarter 2011 on a 1.0 percent increase in total available seat miles (ASMs). Total revenue per ASM was a record 16.30 cents, up 6.1 percent versus the same period last year, driven by a 7.4 percent increase in passenger yields.
Total operating expenses in the second quarter were $3.4 billion, up 0.7 percent over the same period last year. Mainline cost per available seat mile (CASM) was 13.14 cents, down 0.1 percent on a 1.4 percent increase in mainline ASMs. Total average fuel price per gallon fell 3.5 percent versus last year, to $3.18 per gallon. Excluding special charges, fuel, and profit sharing mainline CASM was 8.25 cents, up 1.1 percent versus the same period last year. Express CASM excluding special charges and fuel was 14.19 cents, down 0.1 percent on a 1.1 percent decrease in Express ASMs.
As of June 30, 2012, the Company had $2.9 billion in total cash and investments, of which $393 million was restricted. That is up from $2.6 billion, of which $388 million was restricted, on June 30, 2011.
During the second quarter, the Company completed an enhanced equipment trust certificate offering in the aggregate face amount of approximately $623 million. The proceeds were used to refinance two Airbus aircraft owned by US Airways and to finance the Company’s purchase of twelve Airbus aircraft scheduled to be delivered from Sept. 2012 to March 2013 with the remaining balance used for general corporate purposes.
The Company recognized $15 million of net special charges in the second quarter of 2012. This included $9 million of net operating expense primarily related to corporate transaction and auction rate securities arbitration costs and a gain on a vendor settlement and a $3 million charge associated with the ratification of a new fleet and passenger services contract at Piedmont, a wholly-owned Express subsidiary. In addition, the Company recorded $3 million in nonoperating expense related to debt pre-payment penalties and non-cash write-offs of certain debt issuance costs.
Highlights of US Airways Group, Inc.’s (the Company) second quarter 2012 results:
The Company reported a record second quarter net profit excluding net special charges of $321 million, or $1.61 per diluted share. This is a 203 percent increase versus the Company’s second quarter 2011 net profit excluding net special charges of $106 million, or $0.56 per diluted share.
On a GAAP basis, the Company reported record net profit for the second quarter 2012 of $306 million, or $1.54 per diluted share. This is 233 percent above the second quarter 2011 net profit of $92 million, or $0.49 per diluted share. It is also the highest quarterly profit in company history.
The Company accrued $33 million during the quarter for its annual employee profit sharing program. In addition, through May US Airways’ employees earned approximately $10 million in operational incentive payouts related to the Company’s outstanding operational performance.