US Airways Group, Inc. (Phoenix) today reported its first quarter 2012 financial results. For the first quarter 2012, the group reported a net loss excluding net special credits of $22 million, or ($0.13) per share. Net loss excluding net special charges for the first quarter 2011 was $110 million, or ($0.68) per share. On a GAAP basis, the Company reported a net profit of $48 million for its first quarter 2012, or $0.28 per diluted share, compared to a net loss of $114 million, or ($0.71) per share, for the same period in 2011.

Strong passenger demand and record passenger yields led to improved revenue performance. Total revenues in the first quarter were a record $3.3 billion, up 10.3 percent versus the first quarter 2011 on a 3.0 percent increase in total available seat miles (ASMs). Total revenue per ASM was a record 15.45 cents, up 7.1 percent versus the same period last year, driven by a record first quarter load factor of 79.3 percent, up 1.3 points, and a 6.5 percent increase in passenger yields.

Total operating expenses in the first quarter were $3.2 billion, up 6.9 percent over the same period last year due primarily to a $160 million increase in consolidated fuel expense. Mainline cost per available seat mile (CASM) was 13.57 cents, up 3.7 percent on a 4.0 percent increase in mainline ASMs. Excluding special charges and fuel, mainline CASM was 8.71 cents, down 0.6 percent versus the same period last year. Express CASM excluding special charges and fuel was 15.33 cents, up 1.5 percent on a 1.8 percent decrease in Express ASMs.

As of March 31, 2012, the Company had $2.54 billion in total cash and investments, of which $347 million was restricted, up from $2.31 billion, of which $365 million was restricted on December 31, 2011.

In addition, in April 2012 US Airways entered into a loan agreement, pursuant to which US Airways borrowed an aggregate principal amount of $100 million. The net proceeds after fees were approximately $98 million. The loan is collateralized by certain airport take-off and landing slots.

The Company recognized $70 million of net special credits in the first quarter. Special credits included a $73 million gain associated with the previously announced slot transaction with Delta Air Lines, Inc., offset in part by a $3 million special operating charge. The Company closed the slot transaction in December 2011, which resulted in a $147 million gain that the Company deferred as of December 31, 2011 due to Department of Transportation (DOT) operating restrictions. The Company expects to recognize the remaining $74 million gain in the third quarter of 2012 as the operating restrictions lapse.

Copyright Photo: Bruce Drum. US Airways is gradually replacing its aging Boeing 737-400 fleet.

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