US Airways Shares Took Off: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of US Airways (NYS: LCC) took off this morning. After reaching a cruising altitude of 10% gains, shares have started their descent and are now up "only" 4% for the day, after the company reported fourth-quarter earnings.

So what: Revenue went up to $3.16 billion, with earnings per share of $0.13. While sales just slimly exceeded the estimate of $3.14 billion, the bottom line trounced the $0.02 consensus. The year-over-year decline in profitability was unsurprisingly attributed to the jump in oil prices.

Now what: CEO Doug Parker confirmed that the company was looking into potential deals to acquire now-bankrupt American Airlines parent AMR (OTC: AAMRQ). The possible deal would hardly be surprising, since bankruptcy and consolidation are par for the course within the industry. Rival carrier Delta Airlines has even been named as a potential suitor to pick up AA's pieces.

Interested in more info on US Airways? Add it to your watchlist byclicking here.

At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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