US Airways Shares Took Off: What You Need to Know
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.
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