NEW YORK (AP) — US Airways Group Inc. said Wednesday its net income fell 35 percent in the last three months of 2011 as rising passenger revenue wasn't enough to offset a steep increase in fuel prices.
The airline's results still beat Wall Street's expectations. The stock rose nearly 5 percent in premarket trading.
The Tempe, Ariz., company said Wednesday that it earned $18 million, or 11 cents per share, in the fourth quarter. That compares with $28 million, or 17 cents per share, a year earlier. Excluding charges, it earned 13 cents per share in the most recent quarter.
Revenue rose 9 percent to $3.16 billion. The money the airline made to fly a passenger one mile in the fourth-quarter rose 9.9 percent to a record 15.2 cents, as the airline raised fares in an attempt to offset a $232 million increase in fuel costs. US Airways expects passenger demand to remain strong.
Analysts surveyed by FactSet, who tend to exclude one-time gains or losses from their estimates, expected a profit of 2 cents per share on revenue of $3.15 billion.
For all of 2011, the airline earned $71 million, or 44 cents per share, compared with $502 million, or $2.61 per share, in 2010. US Airways said if fuel has stayed the same as in 2010, it would have saved $1.2 billion.
Shares