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UPDATE 1-US Airways posts sharply higher profit
July 25, 2012 / 1:24 PM / 5 years ago

UPDATE 1-US Airways posts sharply higher profit

* Second-quarter adj EPS $1.61 vs estimate $1.56

* Revenue up 7 pct (Adds estimates)

July 25 (Reuters) - US Airways Group Inc on Wednesday said strong passenger demand helped produce the highest quarterly profit in company history that occurred in the second quarter.

Net income was $306 million, or $1.54 a share in the second quarter, more than triple the $92 million, or 49 cents a share, recorded a year earlier.

Excluding charges that totaled $15 million, profit was $1.61 a share. On that basis, analysts had expected $1.56 a share, according to Thomson Reuters I/B/E/S.

Operating revenue rose 7 percent to $3.75 billion, outpacing a rise of just 0.7 percent in total operating expenses. Costs for fuel and related taxes fell 4 percent in the quarter.

As U.S. airlines have consolidated in recent years, US Airways is looking to follow suit, having disclosed its interest earlier this year in combining with bankrupt American Airlines parent AMR Corp, which is evaluating potential merger partners.

US Airways shares rose 5 percent to $12.20 in premarket trading.

Reporting by Karen Jacobs:; Editing by Gerald E. McCormick and Maureen Bavdek

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