US Airways Group Posts First-Quarter $65 Million in Profits

Buoyed by revenue increases that are exceeding even its own expectations, US Airways Group reported a first quarter profit and said it expects to post a full-year profit, too –even when accounting for merger expenses and continued high fuel costs.

The results continue to vindicate, at least for now, America West´s decision to merge with US Airways.

The airline´s $65 million profit includes some one-time special items. But even without them it would have made $5 million at a time when most major carriers are still reporting big losses.

US Airways officials said high demand and the U.S. airline industry´s capacity restraint are filling planes and letting the airline raise fares and sell fewer of the cheapest fares.

But US Airways said its revenue also is continuing to benefit from a bigger network and improved frequent flyer program created by the merger, as well as the merger-enabled elimination of unprofitable routes.

The US Airways results came one day after United, another post-bankruptcy carrier, also said it is doing better, but still reported what amounted to a $306 million loss.