US Airways Group, Inc. (LCC), Thursday reported a loss for the fourth quarter that narrowed from last year, reflecting lower operating expenses, more than offseting a 5% decline in revenues.
The Tempe, Arizona-based company's net loss for the fourth quarter narrowed to $79 million or $0.49 per share from $543 million or $4.76 per share last year. Results for the quarter include net special items of $33 million, non-operating special items of $49 million and income tax benefits of $38 million.
On an adjusted basis, net loss was $32 million or $0.20 per share, compared to net loss of $222 million or $1.94 per share in the same quarter, a year earlier.
On average, nine analysts polled by Thomson Reuters expected the company to report a loss of $0.50 per share for the quarter. Analysts' estimates typically exclude special items.
Total operating revenues declined 4.9% to $2.63 billion from $2.76 billion in the prior year quarter due to a 1.8% decline in total available seat miles and lower passenger yields. Four analysts estimated revenues of $2.59 billion for the quarter.
Total revenue per available seat mile was 13.02 cents, down 3.1% versus the same period last year. Mainline passenger revenue per available seat mile or PRASM in the fourth quarter was 9.93 cents, down 7.0% versus the same period last year. Express PRASM was 18.76 cents, up 1.7% from last year. Total mainline and Express PRASM was 11.44 cents, down 4.7%, compared to the fourth quarter 2008.
By segment, Mainline passenger segment revenues declined 8.7% to $1.66 billion from a year ago. Express passenger revenues declined 0.3% to $647 million, while Cargo revenues of $33 million remained unchanged from last year. Other revenues rose 9.9% to $286 million from a year ago.
Total operating expenses declined 16.8% to $2.61 billion from $3.14 billion last year, due principally to a 14.6% decrease in mainline and Express fuel expense. Mainline cost per available seat mile or CASM in the fourth quarter was 11.82 cents, down 19.2% compared to the same period last year. Excluding fuel and special items, mainline CASM was 8.56 cents, up 0.8% from a year ago, on a 1.8% decline in mainline ASMs.
Aircraft fuel and related taxes declined 14.8% to $511 million and salaries & related costs declined 3.4% to $512 million from the year ago quarter.
In the prior-year quarter, the company recorded realized and unrealized loss on fuel hedging instruments of $202 million and $234 million, respectively.
Express fuel expenses declined 14% to $171 million and aircraft rent declined 4.1% to $173 million from the prior year quarter. Aircraft maintenance expenses were $168 million, down 7.8% from last year. Selling expenses declined 7.7% to $91 million from the previous year.
Interest expense for the quarter declined 8% to $75 million from the previous year.
Consolidated traffic for the quarter declined 1.8% to 15.85 billion revenue passenger miles, as capacity declined 1.8% to 20.16 billion available seat miles from the previous year. Load factor for the quarter remained unchanged at 78.6%, when compared to the year ago quarter.
For the fiscal 2009, net loss was $0.20 billion or $1.54 per share, compared to $2.21 billion or $22.11 per share in the previous year. Adjusted net loss was $499 million or $3.75 per share, compared to $808 million or $8.06 per share a year ago. Total operating revenues for the year declined to $2.50 billion from $2.88 billion last year.
Analysts estimated loss of $4.12 per share, on revenues of $10.43 billion for the full year.
LCC closed Wednesday's trading at $5.14, up 0.28 or 5.76%, on a volume of 14.23 million shares on the NYSE. In after hours, the stock further gained 0.01 or 0.19%, trading at $5.15.
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