$195m boost from ancillary revenues
US Airways last night (July 24) reported a $58m (€41m) net profit for the second quarter aided by $195m in revenue from ancillary passenger revenues.
The result is a reversal in fortunes for the airline which reported a $568m (€400m) loss in the same quarter last year.
US said it had generated $195m (€137m) in ancillary "extra" charges in the six months to June 30, a figure it expected to more than double before the next financial year.
A recently launched in-flight wifi service, checked baggage fees, a "choice seats" programme and increased service fees are all expected to make more than $400m (€281m) for the airline.
But US said demand had been hit by a drop in business travel as companies continue to reduce travel spend.
"Business bookings continue to be down sharply as, in response to the economic recession, companies have cut costs by reducing their travel budgets," the airline said in a statement.
"Airlines are experiencing lower yields as travellers are purchasing tickets carrying fewer restrictions at lower fares. The contraction of business spending has also significantly impacted cargo demand."
Despite a fall in the cost of fuel compared to last year, US said hedging at this year's volatile prices was "either expensive or risky".
The airline reported a fuel hedging loss of $135m (€95m) in the second quarter.
Mainline capacity was cut by 6.4% in the six months to June 30 which US said was in line with its plan to cut the total number of seats by 4-6% this year.
It added: "We are continuing to evaluate capacity requirements for the beyond summer period including international capacity.
"We anticipate that our 2009 capacity reductions will help us mitigate the impact of reduced passenger demand on revenue and reduce costs."
www.usairways.com