Good news for the the airline crowd (finally...)

[wheelsup]

US Airways New 52-Week High on Upgrade

The stock jumped $3.37 Monday afternoon to $41.10 on the New York Stock Exchange. It began trading in September after US Airways left Chapter 11 bankruptcy protection. Its previous high was $40.75.

The stock led a strong afternoon for airlines, with Continental Airlines Inc. rising $1.77, or 7.4 percent, to $25.69 and American Airlines owner AMR Corp. rose $1.28, or 5.7 percent, to $23.74.

McAdoo predicts a first-quarter profit of 10 cents per share for US Airways, versus previously forecasting $1.73, loss, excluding costs related to its merger with America West Holdings Corp. Analysts, on average, are expecting a loss of 48 cents per share, according to a Thomson Financial poll.

McAdoo said US Airways' lower costs and improved revenue will drive the improvement, even in the face of high oil prices.

A number of airlines have posted improved revenue numbers this quarter, as fare increases designed to offset higher fuel prices kick in. Both AMR and Continental have reported operating profits for the first quarter.

Even if oil prices rise farther, US Airways will likely be able to compensate by hiking fares, McAdoo said. Fare increases likely won't hurt demand much, as it takes only a 3 percent fare increase to offset a $7 increase in crude oil, McAdoo said.

The analyst also wrote that he is "pleasantly surprised" with the lack of major problems as management merges US Airways' primarily East Coast network with America West's West Coast routes.

http://news.moneycentral.msn.com/tic...&Symbol=US:LCC

Maybe airlines have finally figured out that airplanes booked 5% over capacity mean that people still want to fly? And maybe they've figured out that you should charge what it costs to make a profit?

[stuckingfk]

Originally Posted by wheelsup

Maybe airlines have finally figured out that airplanes booked 5% over capacity mean that people still want to fly? And maybe they've figured out that you should charge what it costs to make a profit?

They had to screw the pilots first though. They knew the public wouldn't stop flying when ticket prices increased. All they're doing is trying to maximize their profits.

[gurisudenko]

Betta recognize!!!

[frog_flyer]

Originally Posted by wheelsup

Maybe airlines have finally figured out that airplanes booked 5% over capacity mean that people still want to fly? And maybe they've figured out that you should charge what it costs to make a profit?

its a good thing you dont work for an airline..... because if you charge what it costs you..... you're not gonna make a profit bubba.

[BobDDuck]

Read what he said... He said "charge what it costs TO MAKE A PROFIT". So hence, they would making a profit. And by the way, he does work for an airline. A profitable (for now) one at that.

[wheelsup]

Originally Posted by frog_flyer

its a good thing you dont work for an airline..... because if you charge what it costs you..... you're not gonna make a profit bubba.

Yeah, what bobdduck said...poor word choice on my part...but you get the idea.

[kellwolf]

Originally Posted by frog_flyer

its a good thing you dont work for an airline..... because if you charge what it costs you..... you're not gonna make a profit bubba.

Yeah, cause Air Whisky isn't really an airline.