Tag Archives: Pittsburgh Steelers

US Airways reports a record Second Quarter net profit

US Airways Group, Inc. (US Airways) (Phoenix) today reported its second quarter 2013 financial results. For the second quarter 2013, pretax profit excluding net special items was $409 million, the highest in Company history. Net profit excluding net special items was a record $324 million, or $1.58 per diluted share. Net profit excluding net special items for the second quarter 2012 was $321 million, or $1.61 per diluted share. The Company’s 2013 second quarter net profit excluding net special items was negatively impacted by a non-cash provision for income tax of $85 million. There was no provision for income tax recorded in 2012.

On a GAAP basis, the Company reported a net profit of $287 million for its second quarter 2013, or $1.40 per diluted share. This compares to a net profit of $306 million, or $1.54 per diluted share, for the same period in 2012. The Company’s 2013 second quarter net profit was negatively impacted by a non-cash provision for income tax of $67 million.

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.

Revenue and Cost Comparisons

Total revenues in the second quarter were a record $3.9 billion, up 2.9 percent versus the second quarter 2012 on a 3.4 percent increase in total available seat miles (ASMs). Total revenue per ASM was 16.22 cents, down 0.5 percent versus the same period last year driven by a 2.8 percent decrease in passenger yield, offset by a record quarterly load factor of 85.1 percent.

Total operating expenses in the second quarter were $3.4 billion, up 1.0 percent over the same period last year. Mainline cost per available seat mile (CASM) was 12.88 cents, down 2.0 percent on a 4.2 percent increase in mainline ASMs. Excluding special items, fuel and profit sharing, mainline CASM was 8.21 cents, down 0.4 percent versus the same period last year. Express CASM excluding special items and fuel was 14.34 cents, up 1.1 percent on a 0.3 percent decrease in ASMs.


As of June 30, 2013, the Company had a record $4.0 billion in total cash and investments, of which $350 million was restricted. This is up approximately $1.1 billion from the Company’s first quarter 2013 total cash and investments balance of $2.9 billion, of which $352 million was restricted.

During the second quarter, the Company raised approximately $870 million in net incremental cash through a series of financing transactions. These transactions included the refinancing of the Company’s term loan (resulting in approximately $270 million in incremental cash); the issuance of high yield bonds in an aggregate principal amount of $500 million; and a $100 million C-tranche to its 2012-2 EETC.

Special Items

The Company recognized approximately $55 million of net special items before taxes in the second quarter. Operating special items totaled $24 million and were primarily related to merger costs. The Company also recognized approximately $31 million in nonoperating special items primarily related to debt extinguishment charges due to non-cash write offs of debt discount and debt issuance costs in connection with conversions of the Company’s 7.25% convertible senior notes and repayment of the Citicorp North America term loan. The net tax effect of these special items was approximately $18 million.

Merger Update

The Company and its representatives continue to work closely with their counterparts at American in merger integration planning. The Company continues to expect the transaction to close in the third quarter. Recent accomplishments include:

  • June 10: US Airways and American announced the new Board of Directors and the senior leadership team for the new American Airlines Group Inc.
  • June 10: The Securities Exchange Commission (SEC) Form S-4 Registration Statement was declared effective by the SEC.
  • June 19: US Airways’ Chairman and CEO Doug Parker and American Airlines’ Senior Vice President, General Counsel & Chief Compliance Officer Gary Kennedy, jointly testified before the Senate Subcommittee on Aviation, Operations, Safety and Security about the benefits of the new American Airlines to customers, employees, financial stakeholders and communities.
  • July 12: US Airways’ shareholders approved the proposed merger with 99.8 percent in favor and 0.2 percent against.
  • To date, leadership teams have been announced for operations, finance, revenue management, marketing, human resources, corporate communications, and legal and labor relations.

Copyright Photo: Bruce Drum/AirlinersGallery.com. Airbus A319-112 N733UW (msn 1205) in the Pittsburgh Steelers motif taxies to the active runway at the Charlotte hub.

US Airways: AG Slide Show

US Airways’ pilots protest pay and the slow pace of contract talks

The US Airline Pilots Association (USAPA), representing the pilots of US Airways (Phoenix) are picketing at the Philadelphia International Airport today (September 8) to bring attention to what it believes to be US Airways’ deliberate efforts to drag out contract negotiations since 2005, while benefiting from paying its pilots the lowest wages among the major airlines.

In September 2005, US Airways and America West Airlines announced a merger of the two carriers. In USAPA’s view, that attempt at consolidation has not gone smoothly.

Because of the separate pilot contracts, US Airways is really two airlines (East and West) operating under the same brand but the flight crews and aircraft are not mixed.

According to the union, the US Airways pilots entered contract negotiations with management in November 2005 under the terms of a Transition Agreement at the time of the US Airways-America West merger. In April 2009, USAPA requested a National Mediation Board (NMB) facilitator to assist the parties in reaching an agreement, but US Airways rejected that proposal. In November 2009, USAPA applied directly to the NMB for federally-mediated talks. The NMB granted that request in January 2010. NMB-mediated contract negotiations are currently ongoing.

USAPA believes that, should US Airways management fail to adequately address the pilots’ concerns, contract talks could reach an impasse and end in a self-help situation.

Copyright Photo: Bruce Drum. Belonging to the East fleet, Airbus A319-112 N733UW (msn 1205), dressed in the NFL’s Pittsburgh Steelers brand, taxies to the runway at Charlotte. The NFL begins a new football season on September 9.