While traffic increased in February for U.S. Airways Group, slower revenue growth put pressure on shares.
A slower pace of revenue growth per available seat mile could indicate the airline is having trouble raising prices to offset the rising cost of fuel.
[Editors Note: this quote is a clarification on U.S. Airways revenue:]
“Revenue per available seat mile, which measures how much an airline makes to fly one passenger a single mile, rose 7% in February compared with the same month last year. But that’s less than in previous months. The metric had increased by double-digit percentages since September,” writes the Associated Press.
U.S. Airways (LCC) stock was hovering near $7.02, down 61 cents, or 7.99%. Southwest Airlines (LUV) stock was off nearly 3% in early afternoon trading.� Smaller carrier Hawaiian Holdings (HA) was off 5.6%. But shares of Spirit Airlines (SAVE) were up 2.65%.
In a press release, U.S. Airways said mainline revenue passenger miles for February were 4.3 billion, up 7.9% versus February 2011. Available seat miles, a measure of capacity, rose 5.8% to 5.5 billion.
As we pointed outin a previous post, the latest filings from David Tepper of Appaloosa Management showed he emptied his position in U.S. Airways in recent months.
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