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US Airways Reports Highest Annual Profit In Company History

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January 23, 2013

US Airways Reports Highest Annual Profit In Company History

TEMPE, Ariz.,?Jan. 23, 2013?/PRNewswire/ –?US Airways Group, Inc.?(NYSE: LCC) today reported its fourth quarter and 2012 financial results. For full year 2012, the Company reported a record net profit of?$537 million, or?$2.79?per diluted share, which excludes net special items totaling a credit of?$100 million. This compares to a full year 2011 net profit of?$111 million?excluding net special items, or?$0.68?per diluted share. On a GAAP basis, the Company reported a record net profit of?$637 million, or?$3.28?per diluted share for 2012, up 797 percent over the 2011 net profit of?$71 million, or?$0.44?per diluted share.

For the fourth quarter 2012, net profit excluding net special items was?$46 million, or?$0.26?per diluted share. Net profit excluding net special items for the fourth quarter 2011 was?$21 million, or?$0.13?per diluted share. On a GAAP basis, the Company reported a record net profit of?$37 million?for its fourth quarter 2012, or?$0.22?per diluted share, compared to a net profit of?$18 million, or?$0.11?per diluted share, for the same period in 2011. As previously disclosed, the Company’s fourth quarter and full year results were negatively impacted by approximately?$35 million?due to Hurricane Sandy. See the accompanying notes in the Financial Tables section of this press release for a reconciliation of GAAP financial information to non-GAAP financial information.

US Airways Group, Inc.?Chairman and CEO?Doug Parker?stated, “We couldn’t be happier with the performance of?US Airways?in 2012. Our 32,000 hard-working team members did a phenomenal job of running a safe and reliable airline for our customers and these record financial results are the result of their efforts.

Our team members produced the best operating reliability performance in our history -which is no easy feat since?US Airways?led all network carriers in on-time performance from 2008-2011. But in 2012, we did even better with record highs in on-time performance, completion factor and baggage handling. This helped lead to our best ever annual results in total revenue, total traffic, mainline load factor, mainline yield and mainline revenue.

These outstanding operating and revenue results combined with strong cost discipline led to record net income excluding special items of?$537 million, up nearly 400 percent versus last year. Our shareholders were rewarded for their confidence in our team as?US Airways?stock increased 166 percent in 2012, the largest increase of any company in the Fortune 500.

[quote]”We enter 2013 with great momentum and enthusiasm and are well positioned for whatever may lie ahead,” concluded Parker.[/quote]

Revenue and Cost Comparisons

A strong demand environment and record passenger yields led to improved revenue performance. Total revenues in the fourth quarter were a record?$3.3 billion, up 3.9 percent versus the fourth quarter 2011 on a 1.4 percent increase in total available seat miles (ASMs). Total revenue per ASM was a record?15.58 cents, up 2.5 percent versus the same period last year driven by a two point increase in passenger load factor.

For the full year 2012, total revenues were a record?$13.8 billion, up 5.9 percent versus 2011. Total revenue per ASM increased 3.9 percent to a record?15.64 cents, driven by a 3.5 percent increase in passenger yield and a record load factor of 82.9 percent, up from 82.3 percent in 2011.

Total operating expenses in the fourth quarter were?$3.2 billion, up 3.5 percent over the same period last year. Mainline cost per available seat mile (CASM) was?13.55 cents, up 2.8 percent on a 0.7 percent increase in mainline ASMs. Excluding special items, fuel and profit sharing, mainline CASM was?8.73 cents, up 2.9 percent versus the same period last year. Express CASM excluding special items and fuel was?14.54 cents, down 2.7 percent on a 4.8 percent increase in ASMs.

For the full year 2012, total operating expenses were?$13.0 billion, up 2.7 percent versus 2011. Excluding special items, fuel and profit sharing, mainline CASM increased 0.5 percent to?8.39 cents. Express CASM excluding special items and fuel decreased 1.5 percent to?14.49 cents.

Liquidity

As of?December 31, 2012, the Company had?$2.71 billion?in total cash and investments, of which?$336 million?was restricted, up from?$2.31 billion, of which?$365 million?was restricted on?December 31, 2011.

Special Items

The Company recognized approximately?$9 million?of net special items in the fourth quarter, which are primarily related to corporate transaction and auction rate securities arbitration costs.

Notable Accomplishments

Marketing and Customer Enhancements

  • Announced the return of seasonal service between the Company’s international gateway at?Philadelphia?International Airport?and Shannon,?Ireland.
  • Announced new service from?Charlotte, N.C.?to?London’s?Heathrow Airport?and?Sao Paulo, Brazil.
  • Launched a new codeshare agreement with Avianca, expanding access for customers throughout?Colombia. The Company also expanded its current codeshare with?TACA International Airlines?and launched a new codeshare with?South African Airways.
  • Completed the installation of Gogo? inflight Wi-Fi internet service on Embraer E170 and E175 aircraft. Wi-Fi is now on more than 80 percent of?US Airways’ Embraer and?Airbus?narrow-body aircraft.

Operational Achievements

  • Achieved new monthly baggage performance records for 12 consecutive months since?Dec. 2011.
  • Wholly-owned subsidiary?PSA Airlines?became the first regional airline to achieve the highest level of the Federal Aviation Administration’s Safety Management System.

Financial Accomplishments

  • Completed an enhanced equipment trust certificate offering in the aggregate face amount of?$546 million. The proceeds will primarily be used to finance the purchase of eleven?Airbus?aircraft scheduled to be delivered from?May 2013?to?October 2013.
  • Recognized by?Institutional Investor Magazine?as one of its most honored companies in 2013, including the top investor relations department in the airline industry.

Corporate Citizenship

  • Raised a record?$1.46 million?for?United Way?with annual “Hope Takes Flight” campaign.
  • Launched BE PINK partnership with American Cancer Society’s Making Strides Against Breast Cancer (MSABC) and raised?$200,000?through uniform and merchandise sales and MSABC walks.
  • Awarded?$170,000?in US Airways Education Foundation Grants to non-profits in?Washington,?Charlotte,?Philadelphia?and?Phoenix.
  • Honored 85 top flight attendants for exceptional customer service and recognized the contributions of three with more than 50 years of service at the annual “InFlight Service Champions” dinner in?Phoenix.

2013 Investor Guidance

The Company will provide its investor relations guidance on its website (www.usairways.com) immediately following its?11:30 a.m. ET?conference call. The Company typically provides guidance related to cost per available seat mile (CASM) excluding special charges, fuel and profit sharing, fuel prices, other revenues and estimated interest expense/income on its investor relations update page on its web site. This update will also include the airline’s capacity, fleet plan and estimated capital spending for 2013.

[box type=”tick”]About US Airways

US Airways, along with US Airways Shuttle and US Airways Express, operates more than 3,000 flights per day and serves 198 communities in the U.S., Canada, Mexico, Europe, the Middle East, the Caribbean, Central and South America. The airline employs more than 32,000 aviation professionals worldwide, operates the world’s largest fleet of Airbus aircraft and is a member of the Star Alliance network, which offers its customers more than 21,900 daily flights to 1,329 airports in 194 countries. Together with its US Airways Express partners, the airline serves approximately 80 million passengers each year and operates hubs in Charlotte, N.C., Philadelphia and Phoenix, and a focus city in Washington, D.C. at Ronald Reagan Washington National Airport. Aviation Week and Overhaul & Maintenance magazine presented US Airways with the 2012 Aviation Maintenance, Repair and Overhaul (MRO) of the Year Award for demonstrating outstanding achievement and innovation in the area of technical operations. Military Times Edge magazine named US Airways as a Best of Vets employer in 2011 and 2012. US Airways was, for the third year in a row, the only airline included as one of the 50 best companies to work for in the U.S. by LATINA Style magazine’s 50 Report. The airline also earned a 100 percent rating on the Human Rights Campaign Corporate Equality index for six consecutive years. The Corporate Equality index is a leading indicator of companies’ attitudes and policies toward lesbian, gay, bisexual and transgender employees and customers.[/box]

Source: US Airways

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