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US Airways Group Inc. Reports Operating Results (10-Q)

July 25, 2012 | About:
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10qk

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US Airways Group Inc. (LCC) filed Quarterly Report for the period ended 2012-06-30.

Us Airways Group, Inc. has a market cap of $1.95 billion; its shares were traded at around $11.61 with a P/E ratio of 11.3 and P/S ratio of 0.2.

Highlight of Business Operations:

Mainline and express passenger revenues increased $247 million, or 7.9%, as compared to the 2011 period driven by a 7.4% increase in yield as compared to the 2011 period. Our mainline and express passenger revenue per available seat mile (PRASM) was 14.59 cents in the second quarter of 2012, a 6.8% increase, as compared to 13.66 cents in the 2011 period. Total revenue per available seat mile (RASM) was 16.30 cents in the second quarter of 2012 as compared to 15.36 cents in the 2011 period, representing a 6.1% improvement. Total revenues include our ancillary revenue initiatives, which generated $154 million in revenues for the second quarter of 2012, an increase of $14 million over the 2011 period principally related to our Choice Seats program.

Total operating expenses were $3.35 billion in the second quarter of 2012, an increase of $24 million, or 0.7%, compared to the 2011 period. The increase in operating expenses was primarily driven by a $97 million, or 16.8%, increase in salaries and related costs, primarily due to our record profitability and the 76% increase in the price of our common stock during the second quarter of 2012. This increase was partially offset by a $47 million, or 3.8%, decrease in mainline and express fuel costs as the average price per gallon of fuel decreased 3.5% to $3.18 in the second quarter of 2012 from $3.29 in the 2011 period, on a 0.4% decrease in consumption.

Total operating expenses were $6.56 billion in the first six months of 2012, an increase of $232 million, or 3.7%, compared to the 2011 period. The increase in operating expenses was primarily driven by a $130 million, or 11.3%, increase in salaries and related costs as well as a $112 million, or 5.1%, increase in mainline and express fuel costs. The increase in salaries and related costs was primarily due to our second quarter 2012 record profitability and the 163% increase in the price of our common stock during the first six months of 2012. Fuel costs increased as the average price per gallon of fuel increased 3.9% to $3.22 in the first six months of 2012 from $3.10 in the 2011 period, on a 1.1% increase in consumption.

Total operating expenses were $3.40 billion in the second quarter of 2012, an increase of $35 million, or 1.1%, compared to the 2011 period. The increase in operating expenses was primarily driven by a $97 million, or 16.8%, increase in salaries and related costs, primarily due to US Airways record profitability and the 76% increase in the price of US Airways Groups common stock during the second quarter of 2012. This increase was partially offset by a $48 million, or 3.8%, decrease in mainline and express fuel costs as the average price per gallon of fuel decreased 3.5% to $3.18 in the second quarter of 2012 from $3.29 in the 2011 period on a 0.4% decrease in consumption.

Total operating expenses were $6.65 billion in the first six months of 2012, an increase of $260 million, or 4.1%, compared to the 2011 period. The increase in operating expenses was primarily driven by a $130 million, or 11.3%, increase in salaries and related costs as well as a $112 million, or 5.1%, increase in mainline and express fuel costs. The increase in salaries and related costs was primarily due to US Airways second quarter 2012 record profitability and the 163% increase in the price of US Airways Groups common stock during the first six months of 2012. Fuel costs increased as the average price per gallon of fuel increased 3.9% to $3.22 in the first six months of 2012 from $3.10 in the 2011 period, on a 1.1% increase in consumption.

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