US Airways Q2 Profits Drop 6 Percent Prior to Pending American Merger
In this Thursday, Sept. 27, 2012, photo, US Airways jets are parked at their gates at the Charlotte/Douglas International airport in Charlotte, N.C. US Airways reports quarterly earnings on Wednesday, July 24, 2013. Chuck Burton / AP Photo
The $19 million drop in Q2 profits is tax-related, but these financial results hardly show evidence of much momentum as US Airways heads into its merger with American Airlines, which is expected to be approved by the end of September.
US Airways Group Inc. said Wednesday that net income was $287 million, or $1.40 per share, in the April-June quarter. That’s down from $306 million, or $1.54 per share, a year ago. The company blamed an $85 million income tax provision that it didn’t face last year.
Excluding merger and debt-retirement costs, US Airways says it would’ve earned $1.58 per share. That tops the $1.52 per share that analysts were expecting.
Revenue is up 3 percent to $3.87 billion.
US Airways and American plan to close their merger by the end of September and create the world’s biggest airline, which will keep the American name.
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