New York: US Airways Group Inc. said on Thursday it lost $541 million in the fourth quarter on a mix of sour fuel hedges and operating losses.
The Tempe, Arizona-based airline said it lost $4.74 per share, compared with a loss of $79 million, or 87 cents per share, during the same period in 2007. Revenue was $2.76 billion, up 0.6 per cent from almost $2.78 billion during the fourth quarter of 2007.
Not counting special items such as $234 million in paper losses on fuel hedges, US Airways said it would have lost $1.93 per share.
Analysts surveyed by Thomson Reuters, who generally exclude one-time charges, expected a loss of $2.15 per share on revenue of $2.78 billion.
The oil price run-up that peaked in July prompted many airlines to lock in fuel prices to hedge against further increases. Instead, oil prices fell. That limited the benefit of lower fuel prices.
Chairman and Chief Executive Doug Parker said the results "reflect the staggering increase in fuel prices that we faced throughout most of 2008."
Airlines cut capacity last year, first because of fuel prices, and later because demand fell as the economy slowed. Parker said those capacity cuts "have significantly softened the blow from the economic downturn that we as an industry now face."
The airline said it ended the year with $2 billion in cash and investments, although some $700 million of that was restricted, including money pledged in various hedging transactions.
For the full year, US Airways said it lost $2.21 billion, or $22.06 per share, compared to a 2007 profit of $427 million, or $4.52 per share. Revenue rose 3.6 per cent to $12.12 billion, from $11.7 billion in 2007.
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