US Airways Group Inc., the airline formed from America West's acquisition of the bankrupt former US Airways, on Thursday said it swung to a profit in the second quarter and expects a profitable third quarter and full year.
The company posted net income of $305 million, or $3.25 per share, for the April-June period versus a loss of $3 million, or 20 cents per share, a year ago.
The recent results include $35 million of deal-related expenses, which were partially offset by a $7 million gain from interest income earned on prior year federal income tax refunds, and an $18 million gain related to fuel hedges.
Excluding items, the company posted per-share earnings of $3.35 in the quarter.
Analysts, on average, expected earnings of $3.24 per share, according to a Thomson Financial survey.
Revenue increased to $3.19 billion from $845 million a year ago. Wall Street expected $3.14 billion in revenue.
The company said the second quarter's results are being compared to America West Holdings Corp.'s results for the second quarter of 2005. The acquisition was in September 2005.
On a standalone basis, US Airways reported a profit of $246 million versus a loss of $44 million a year ago. As for America West, on a standalone basis, it reported a profit of $68 million versus a loss of $2 million for the same period last year.
"We are encouraged by a continuing strong revenue environment and an industry that is keeping capacity in check. We anticipate a profitable third quarter and full year 2006," said Chairman, President and Chief Executive Doug Parker.
Shares of US Airways Group fell $3.14, or 6.1 percent, to close at $47.99 on the New York Stock Exchange. But its shares are up about 29 percent since the start of the year.
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