US Airways swings to 4Q pre-tax profit

Washington DC
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US Airways returned to pre-tax profitability in the fourth quarter, posting earnings before taxes of $27 million compared to a $117 million loss the year prior.

The company's fourth quarter revenues grew 10.7% to $2.9 billion as operating income jumped from $14 million to $105 million.

Fourth quarter expenses at US Airways grew 7.3% to $2.8 billion, driven largely by a 22.4% in fuel expense to $628 million.

Unlike most US carriers, US Airways has opted not to participate in a fuel hedging programme, reasoning that overall the schemes are expensive.

For the full year 2010 US Airways posted a $502 million profit, reversing a pre-tax loss of $205 million in 2009. The company states its $447 million net profit recorded in 2010 is the second highest in its history.

US Airways' revenues in 2010 increased 13.9% to $11.9 billion as operating income rose from $118 million to $781 million. Expenses increased 7.6% to $11.1 billion.

The carrier ended 2010 with $2.3 billion in cash, of which $364 million was restricted.