Thursday April 23, 07:05 PM
UPDATE 2-US Airways loss narrows on capacity cuts and fuel
By Kyle Peterson
CHICAGO, April 23 (Reuters) - US Airways Group 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 (NASDAQ: JBLU - news) , meanwhile, reported a quarterly net profit, reversing a year-ago loss. Alaska Air Group 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 (NASDAQ: news) . Alaska Air (NYSE: ALK - news) shares were down 7.7 percent at $18.35 on NYSE. The Amex airline index 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.
Excluding items, US Airways lost $2.28 per share, compared with a consensus Wall Street forecast for an $2.33 per share loss, according to Reuters Estimates.
'We've pulled down an appropriate amount of capacity and will explore additional reductions if the economic environment warrants such action,' US Airways Chief Executive Doug Parker said in a statement.
'Because of the global economic weakness and uncertainty, 2009 remains difficult to forecast,' he said.
Revenue declined 13.5 percent to $2.46 billion. US Airways, like its competitors, has generated new revenue by charging for items and services that once were included in the air fare.
On Thursday, the airline said it would allow passengers to prepay their controversial bag check fees online and would charge an additional $5 fee for each bag checked at the airport.
US Airways ended the quarter with $2.1 billion in cash and investments, of which $7 million was restricted.
JETBLUE TURNS PROFIT, ALASKA AIR LOSES
Low-cost carrier JetBlue's first-quarter net profit was $12 million, or 5 cents per share, compared with a loss of $10 million, or 5 cents per share, a year ago.
JetBlue, which cut capacity 5.4 percent in the quarter from a year earlier, also said its yield per passenger increased 2.5 percent.
Its revenue fell 2.9 percent to $793 million. The company ended the quarter with $634 million in cash and cash equivalents.
Alaska Air's net loss narrowed to $19.2 million, or 53 cents per share, from $37.3 million, or $1.01 per share, a year earlier.
Excluding special items, the loss was 70 cents per share, compared with the analysts' average forecast of a 46-cent loss, according to Reuters Estimates.
The low-cost carrier, which credited lower fuel costs for its improved performance, ended the quarter with $1 billion in unrestricted cash and marketable securities.
Alaska Air, which also operates regional carrier Horizon Air, announced it would charge for a first checked bag. The $15 fee is effective July 7 for tickets purchased beginning May 1. The company already charges for all but the first checked bag.
(Additional reporting by John Crawley in Washington D.C.)
(Reporting by Kyle Peterson, editing by Dave Zimmerman and Derek Caney) Keywords: USAIRWAYS/
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