AWA says merged carrier can manage high fuel costs
Mon Jul 18, 2005 05:13 PM ET
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WASHINGTON, July 18 (Reuters) - America West Airlines (AWA.N: Quote, Profile, Research) believes the carrier that results from its merger with US Airways (UAIRQ.OB: Quote, Profile, Research) can be competitive even if fuel prices remain at or near $60 per barrel, America West said in a regulatory filing on Monday.
"We believe that, as a combined company, the new US Airways can be a survivor even in a world of $60 fuel, and if capacity reductions occur as rapidly as we believe, then we could even potentially operate profitably in that environment," the company said in an employee newsletter filed with the U.S. Securities and Exchange Commission.
America West said several carriers could seek bankruptcy protection and some could liquidate if fuel prices were sustained at $60 per barrel.
"If that were to occur, our revenue situation at the merged carrier would improve proportionally, but again, that assumes that some capacity comes out of the current system," the company said.
Stock close 7.51 ... up 0.58 (8.37%) Volume: 1,784,800
Mon Jul 18, 2005 05:13 PM ET
LINK
WASHINGTON, July 18 (Reuters) - America West Airlines (AWA.N: Quote, Profile, Research) believes the carrier that results from its merger with US Airways (UAIRQ.OB: Quote, Profile, Research) can be competitive even if fuel prices remain at or near $60 per barrel, America West said in a regulatory filing on Monday.
"We believe that, as a combined company, the new US Airways can be a survivor even in a world of $60 fuel, and if capacity reductions occur as rapidly as we believe, then we could even potentially operate profitably in that environment," the company said in an employee newsletter filed with the U.S. Securities and Exchange Commission.
America West said several carriers could seek bankruptcy protection and some could liquidate if fuel prices were sustained at $60 per barrel.
"If that were to occur, our revenue situation at the merged carrier would improve proportionally, but again, that assumes that some capacity comes out of the current system," the company said.
Stock close 7.51 ... up 0.58 (8.37%) Volume: 1,784,800
