US Airways believes current unit revenues offset fuel prices

Washington DC
This story is sourced from Pro
See more Pro news »

Executives at US Airways believe robust demand in February helped to offset fuel costs that continued to rise throughout the month.

Commenting on the carrier's February traffic, which on a consolidated basis grew 4% year-over-year in February, US Airways president Scott Kirby states that consolidated unit revenue per passenger seat mile for the month increased 10%, which helped mitigate the fuel cost increase.

"The demand environment during February was exceptionally strong and we believe the run rate passenger revenue per available seat mile (PRASM) increase US Airways experienced through the end of the month will be sufficient to fully offset the increase in fuel prices reflected in the forward fuel curve as of February 28," says Kirby.

US Airways is the only US legacy carrier opting not to participate in a fuel hedging programme.

Previously Kirby has stated hedging is only effective for massive fuel spikes, noting "it has to be something more than 29%" just to break even. Data from the Air Transport Association of America show that overall in 2010 jet fuel prices increased 18.3%.