Source: Reuters Author: Kyle Peterson 01/06/2010
Subject Concerned: Airlines Aviation Fuel
On Jan. 6, US Airways Group said its domestic mainline capacity was down about 8 percent in 2009 as the airline industry grappled with weaker demand in an economic recession.
The low-cost carrier said its total mainline capacity was down about 5 percent.
US Airways expects to take a non-cash charge of about US$49 million related to sell 10 of its Embraer 190 aircraft to Republic Airline Inc and lease back eight of the planes.
The airline said it has not entered into any new hedge contracts since the third quarter of 2008. For the fourth quarter 2009, the carrier said it paid between US$2.03 and US$2.08 per gallon of jet fuel.
US Airways expects to end the fourth quarter with about US$2 billion in total cash and investments, of which US$500 million is restricted.