Tempe-Based US Airways Posts $567 Million Quarterly Loss-Mostly Goodwill - PhoenixCEOCFO.com

Tempe-Based US Airways Posts $567 Million Quarterly Loss-Mostly Goodwill

US Airways reported a $567 million loss in the quarter ending June 30, 2008. A significant portion of the loss was a write-off of $622 million for goodwill impairment from the merger of US Airways Group and America West Holdings in September 2005. As expected, fuel costs nearly doubled during the quarter as compared to the quarter a year ago, from $658 million to $1,085 million, with revenue slightly increasing by 3%. The increase in fuel costs were offset by fuel hedges of $382 million. US Airways put the loss in perspective, "Without one-time gains and $640 million in costs to reduce the value of planes, parts and other assets (goodwill), the net loss would have been $101 million, or $1.11 a share." According to 10 analysts surveyed by Bloomberg, the $1.11 loss per share would have beat the expected loss of a $1.30.

US Airways will survive.

John Laub is the Chairman of the Phoenix CEO-CFO Group.

1. "US Airways Posts $567 Million Net Loss on Fuel Costs (Update2)." Mary Schlangenstein. Bloomberg. July 22, 2008.

2. 10-Q Filed July 25, 2008. US Airways Group.