US AIRWAYS reported lower third-quarter profit yesterday as it set aside more money for taxes.
The carrier, which hopes to fend off a US Justice Department lawsuit challenging a proposed merger with American Airlines parent AMR, had a higher-than-expected profit excluding merger costs, as the average airfare rose and revenue jumped to a record level.
US Airways said travel demand was hit by the two-week US government shutdown. Revenue per available seat mile, an important measure, would rise just one per cent in October, down from a prior view of four per cent to five per cent growth, because of it.
“Demand and bookings snapped back to pre-crisis levels literally beginning on the morning the government funding legislation was signed,” US Airways president Scott Kirby said. It posted net income of $216m, or $1.04 a share down 12 per cent from $245m, or $1.24 a share, a year earlier.
City A.M. Reporter