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US Airways 2Q profit drops 67 pct as fuel prices rise; higher fares covered some of the bill
TEMPE, Ariz. (AP) ' US Airways Group Inc. says its second-quarter profit fell 67 percent as fuel prices jumped.
The airline on Thursday reported net income of $92 million, down from $279 million a year earlier.
Revenue rose more than 10 percent, to $3.5 billion. But fuel rose faster ' up 47 percent from a year earlier, or $424 million. Airlines have been raising fares to cover those higher fuel prices, but they can't always keep up ' and they have to be careful not to scare passengers away with big fare increases.
US Airways profit was 49 cents per share. Its adjusted profit and revenue matched the expectation of analysts surveyed by FactSet.
Shares fell 14 cents, or 2 percent, to $6.76 in premarket trading.