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The carrier's results also were depressed by a $622 million, noncash charge to write down goodwill from the merger of US Airways and America West Airlines. That made the $567 million loss the airline's worst loss since the merger in September 2005 and compared with a $263 million profit a year ago.
On an operating basis, the loss was not as bad as analysts expected. Those results equaled a loss of $101 million, or minus $1.11 a share, excluding special items such as the goodwill write-down. Wall Street estimated a $1.29 per-share loss, according to a consensus of analysts polled by Zacks Investment Research.
"Our second-quarter results reflect the unprecedented rise in fuel prices that are impacting our industry," said CEO Doug Parker. He said US Airways would continue to trim capacity and that a la carte pricing, or fees to check bags or buy drinks, would raise more than $400 million in revenue this year.
Total revenue grew 3.2 percent to almost $3.26 billion. Total cash at quarter's end equaled $2.8 billion, $2.3 billion of which was unrestricted, a level Parker called "strong."
Results were helped by a $190 million, noncash gain from appreciation in the airline's fuel-hedge contracts.
To see more of The Pittsburgh Tribune-Review or to subscribe to the newspaper, go to http://www.pittsburghlive.com/x/pittsburghtrib/. Copyright (c) 2008, The Pittsburgh Tribune-Review Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
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