US Airways reports record net quarterly profit in second quarter
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CHARLOTTE –US Airways on Wednesday reported a record net quarterly profit in the second quarter of this year.
The airline had net quarterly profit of $306 million in April, May and June, up 233 percent from the same period last year.
"We couldn't be happier," said CEO Doug Parker in a webcast with investors.
Parker said the strong performance proves the airline's strength as a stand-alone company.
"It's quite clear that US Airways has a business model that works and we don't need to merge with another airline," said Parker
Parker used the earnings call to reiterate his belief a merger with American Airlines is a good idea. For months, US Airways made overtures to American's creditors and employees while American works through bankruptcy.
"We're confident any objective analysis will conclude the best plan for the creditors, employees and customers of AMR is a merger with US Airways during the bankruptcy process," said Parker.
American resisted those passes. However in July, American CEO Tom Horton said the company would consider a merger while still in bankruptcy. Parker said that was welcome news.
"That would be a dramatic and welcome shift from the company's posture over the last eight months," said Parker.
Yet on Wednesday, Horton sounded off about US Airways' latest pitch. In an interview with the Associated Press he said the merger with was originally his idea, and the repeated push from Parker amounts to nothing but desperation.
“It would be tremendously unwise for us to pursue a combination with a company because they are seeking to solve their own problems,” Horton told the AP.
Analysts say any merger depends on cooperation from labor unions and on overcoming antitrust objections.
“Getting bigger does not necessarily mean getting better. American may well have an alternative strategy to merger and a better route to growth and market success. The next six months will determine which strategy and CEO wins through,” said Dartmouth business professor Thomas Lawton.
A merger between the two companies would create the world's largest carrier. US Airways has 7,000 employees in Charlotte, making the Queen City its largest hub. About 90 percent of the daily flights at Charlotte-Douglas are operated by US Airways.