US Airways CEO Doug Parker confirmed Wednesday that his company is exploring a merger with American Airlines while that carrier is in bankruptcy, but said a merger is not imperative to US Airways' survival.
Parker's remarks came during a conference call Wednesday, when US Airways reported its fourth quarter and full-year earnings. Although profit was down in the face of higher fuel expenses, profit still fell less than analysts had predicted, and the airline avoided posting a loss.
For the fourth quarter, US Airways reported a profit of $18 million, or 11 cents a share, on revenue of $3.2 billion. Revenue was up 8.5 percent, although profit was down 36 percent, compared with $28 million during the fourth quarter last year.
For 2011, US Airways reported a profit of $71 million, down sharply from last year's profit of $502 million. Revenue for the year rose 9.6 percent, to $13 billion.
US Airways attributed most of the plunge in profits to higher fuel costs. The carrier spent $4.5 billion to fuel its planes in 2011, compared with $3.2 billion in 2010, a 40 percent increase.
Those results, Parker said, reflect industry consolidation that's taken place since 2005, when America West acquired then-bankrupt US Airways.
American is still early in the bankruptcy process, and Parker said he does not expect any more concrete developments for a while.
Parker is well-known as an advocate of airline consolidation and has said there is one big merger left in the airline industry — a merger involving US Airways.
The Tempe, Ariz.-based company operates about 90 percent of daily flights at Charlotte Douglas International Airport, which is US Airways' busiest hub.
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