US Airways soars to record quarterly profit

US Airways posted second-quarter net profit of $306 million, up from $92 million for the same quarter last year. (JACQUELYN MARTIN / AP, File)

By Paul Nussbaum, Inquirer Staff Writer

Posted: July 27, 2012

Higher fares and lower fuel costs helped give US Airways its most profitable quarter ever, as net profit reached $306 million in the three months that ended June 30.

That compared with a net profit of $92 million during the comparable quarter in 2011.

"We are extremely pleased," said chief executive officer Doug Parker, praising the airline's 32,000 employees. He said the airline's showing, a pretax margin of 8.6 percent, was better than that of any other airline except Southwest Airlines, which posted a 9.6 percent margin for the quarter.

Passengers paid 7.4 percent more to fly on US Airways during the quarter than a year earlier, while fuel spending fell by 3.5 percent, about $40 million.

US Airways, which is seeking a merger with bankrupt American Airlines, is the largest carrier at Philadelphia International Airport.

American Airlines chief executive officer Tom Horton said in an interview with the Associated Press that Parker was desperate for a merger to increase revenue before US Airways' labor costs rise. Unions there haven't had new contracts in more than seven years.

Parker dismissed that contention, saying the "premise is incorrect."

He said ongoing labor negotiations would result in "nice increases" for US Airways employees, but at rates lower than those paid by larger competitors.

Meanwhile, Delta Air Lines Inc. reported a $168 million second-quarter loss because it lost on oil-price hedges when fuel prices fell.

Delta last month bought a closed refinery in Trainer, Delaware County, to make jet fuel.

Contact Paul Nussbaum at 215-854-4587 or pnussbaum@phillynews.com .