Yesterday, US Airways (LCC) announced preliminary mainline traffic results for Sept. 2009. The company reported a drop in mainline passenger load factor to 79.3% from 80.1% last year. Total scheduled mainline revenue passenger miles (RPMs) decreased 1.6% to $4.6 billion on a capacity decrease of 0.6% in scheduled mainline available seat miles (ASMs), compared with the same period in 2008.
Consolidated (mainline and express) passenger revenue per available seat mile (PRASM) decreased approximately 15%, versus the same period last year, while total revenue per available seat mile decreased approximately 14% on a year-over-year basis.
The airline has been struggling with volatile oil prices, increased competition and decline in travel. The company has taken aggressive action to address the weakening demand by reducing capacity, introducing additional revenue streams, and prudently cost control. However, consolidated PRASM was also down 1.2% during September.
In order to maintain liquidity flexibility, US Airways has raised approximately $234 million during the second quarter of 2009 through an underwritten offering of common stock and issuance of convertible senior notes.
In addition, the company secured approximately $700 million in aircraft financing commitments since March 31, 2009. Also during September the company raised $137 million through public stock offering. For the second half of 2009 the company’s visibility regarding revenue environment remains unclear.
Peer Continental Airlines (CAL) reported on last Thursday that its total traffic jumped 7% to $6.9 billion in September. This was its first increase in traffic in more than a year with capacity rising modestly.
Read the full analyst report on “LCC”
Read the full analyst report on “CAL”
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