Expects Operating Profit In 2006... Minus Merger Costs
What price solvency? US
Airways Group -- which left Chapter 11 bankruptcy after merging
with America West Airlines last September -- has found an answer to
that question: $261 million.
The amount is US Airways' net loss for the fourth quarter of
2005, which is when the carrier began absorbing the costs of
merging with America West and transferring its operations to
America West's offices in Tempe, AZ. The high cost of fuel had an
impact, as well.
The loss is also substantially greater than the $69 million US
Airways lost in the same quarter of 2004. Which begs something of a
philosophical question: which is better, losing nearly $70 million
under bankruptcy, or losing $261 million after emerging from
It's no contest, says US Airways CEO Doug Parker... especially
as the carrier is looking forward to returning to
profitability, of sorts, in 2006.
"Excluding one-time merger-related costs, the new US Airways
will be profitable in 2006," said Parker in a statement