LCC

[wpSoft2008]

DAL/NWA merger announced. CAL/UAUA confirmed their intention to merge.

LCC may follow and I put it into week 3 picks in my trading system test:

http://www.3stocksonfire.org/trading/index.php?topic=11073.0

[setravis]

Another one from the air group.......

[setravis]

Sector Snap: Airlines take off on oil tail spin.......


52wk Range: 1.45 - 33.96
Volume: 16,745,719
Avg Vol (3m): 10,304,700

Technicals
Last Price Quote is:
52.33%above 13-day MA
77.63%above 50-day MA
RS Rating: 74 

Fundamentals
Key Data:
Market Cap (M): $475.62 
P/E Ratio: 3.19 
PEG Ratio: N/A 
Next Earnings: 10/23/2008
Last Analyst Rating: Neutral

[setravis]

Airline Stocks: A second-day rally after oil falls toward $90 a barrel

Airlines climb for second day after oil extends slide

NEW YORK (MarketWatch) -- Another big decline in oil prices boosted airline stocks for a second day Tuesday, with shares of Delta Air Lines and Northwest pushing the sector to a six-month high.
The Amex Airline Index (XAL:amex airline index xal
XAL 28.13, +2.89, +11.5%) soared 11.5% to close at 27.81 points -- touching its highest point since March -- with all of its 14 components gaining.

The benchmark index hit an all-time low in July as oil prices climbed to a record $147 a barrel, increasing fuel prices by more than 50% and bankrupting many of the smaller airlines. More recently, crude oil for October delivery dropped to a low of $90.55 per barrel in electronic trading.

Wall Street analysts have said oil prices need to get well below $100 a barrel before investors can expect to see any of the major network carriers posting profits again. Last year, when the carriers were posting profits, oil was at $72 a barrel.
Delta Air Lines (DAL:delta air lines inc del com new
DAL 9.94, +1.89, +23.5%) and Northwest (NWA:northwest airls corp com
NWA 11.69, +1.90, +19.4%) , slated to merge at the end of the year, led the pack Tuesday. Shares of Delta jumped almost 24% to $9.94 and Northwest added 19.4% to $11.69.
US Airways (LCC:US Airways Group Inc
LCC 9.10, +1.26, +16.1%) climbed 16.1% to $9.10; United parent UAL Corp. (UAUA:ual corp com new
UAUA 14.02, +1.66, +13.4%) jumped 13.4% to $14.02; Continental (CAL:Continental Airlines Inc
CAL 21.30, +2.45, +13.0%) rose 13% to $21.29; and American parent AMR Corp. (AMR:AMR Corporation
AMR 13.00, +1.70, +15.0%) added 15% to $13.00.
Meanwhile, the Standard & Poor's 500 Index (SPX:S&P 500 Index
SPX 1,213.60, +20.90, +1.8%) rose 1.8% to close at 1,214 points. See Indications.
U.S. airlines employed 0.8% fewer full-time equivalent employees in July compared to the same month last year, according to data released Tuesday from the Bureau of Transportation Statistics.
The seven network carriers employed 280,293 FTEs in July, 68.2% of the passenger airline total, while low-cost carriers and regional carriers each employed about 15%.
American Airlines employed the most FTEs in July among the network carriers, Southwest Airlines (LUV:Southwest Airlines Co.
LUV 16.41, +0.36, +2.2%) employed the most among low-cost carriers, and American Eagle employed the most among regional carriers.
Shares of Southwest gained 2.2% to end at $16.41. Also up among the low-cost carriers were shares of AirTran (AAI:airtran hldgs inc com
AAI 3.09, +0.15, +5.1%) and JetBlue (JBLU:jetblue airways corp com
JBLU 6.21, +0.32, +5.4%) . 

[setravis]

LCC  US Airways Reports Record Third Quarter Profit ...

Highlights of US Airways Group, Inc.'s (the Company) third quarter results:

The Company reported a net profit for the third quarter 2010 of $240 million, or $1.22 per diluted share. This is the highest third quarter net profit in the Company's history.
Excluding special items, the Company reported a net profit of $243 million, or $1.23 per diluted share, for the third quarter 2010.
The Company recorded $25 million during the quarter for its employee profit sharing program. Year-to-date, the Company has recorded $43 million. In addition, employees earned $7 million during the quarter and $16 million year-to-date for operational incentive payouts related to the Company's industry-leading operational performance.
The Company's total cash and investments balance on Sept. 30, 2010 was $2.4 billion, of which $389 million was restricted, up from $2.0 billion, of which $530 million was restricted on Sept. 30, 2009.

Press Release Source: US Airways Group, Inc. On Wednesday October 20, 2010, 9:00 am EDT

TEMPE, Ariz.--(BUSINESS WIRE)-- US Airways Group, Inc. (NYSE:LCC - News) today reported its third quarter financial results. On a GAAP basis, the Company reported a net profit of $240 million for its third quarter 2010, or $1.22 per diluted share, compared to a net loss of ($80) million, or ($0.60) per share, for the same period in 2009. The $240 million net profit is the highest third quarter net profit in the Company's history.



Excluding special items of $3 million, net profit for the third quarter 2010 was $243 million, or $1.23 per diluted share. Net loss excluding special items for the third quarter 2009 was ($110) million, or ($0.83) per share.



See the accompanying notes in the Financial Tables section of this press release for a reconciliation of GAAP financial information to non-GAAP financial information.



US Airways Group, Inc. Chairman and CEO Doug Parker stated, "Reporting a record third quarter profit speaks volumes about the efforts of our 31,000 team members. The past three years have been extremely challenging, and our response has been swift and decisive. We have returned US Airways to profitability and a leading position among our peers in financial and operational metrics by reducing capacity, realigning our network to focus on our primary assets, maintaining cost discipline, increasing ancillary revenues, and establishing industry-leading operational reliability.



"We're particularly pleased with our team's continued dedication to customer service. US Airways' operation is running more efficiently than at any time in our company's history. The Company ranked first among the five largest network carriers in baggage handling for the months of July and August as measured by the U.S. Department of Transportation (DOT). This trend continued in September when we set an all-time Company record for baggage handling.



"We are very proud of our team, and recently announced we will recall approximately 300 pilots and flight attendants from furlough status, which will supplement our international flying in 2011 and accommodate normal attrition. Upon exhausting our flight attendant furlough list later this year, we anticipate hiring new hire flight attendants in early 2011. Our third quarter results also include an accrual of $25 million for our profit sharing program, and $7 million for operational incentive payouts, bringing the total amount earned in 2010 through these programs to nearly $60 million."



Revenue and Cost Comparisons



A modestly improving economy and continued industry capacity discipline led to improved revenue performance. Total revenues in the third quarter were up 16.9 percent versus the third quarter of 2009 on a 1.6 percent increase in total available seat miles (ASMs). Total revenue per available seat mile was 13.90 cents, up 15.0 percent versus the same period last year driven by a 13.6 percent increase in passenger yields and an increase in passenger load factor from 82.6 percent to 83.1 percent.

Outstanding operating reliability and continued cost diligence allowed the Company to keep costs in check despite rising fuel prices. Total operating expenses in the third quarter were up 5.6 percent over the same period last year due primarily to a 16.7 percent increase in fuel expense. Mainline cost per available seat mile (CASM) was 11.34 cents, up 3.1 percent. Excluding fuel and special items, mainline CASM was flat as compared to the same period last year at 8.06 cents, and excluding fuel, special items and profit sharing, mainline CASM actually decreased 1.6 percent to 7.93 cents. Express CASM excluding fuel was 13.32 cents, up 4.4 percent on a 1.5 percent decline in ASMs.



Liquidity



During the third quarter, the Company purchased approximately $69 million aggregate principal amount of its 7 percent senior convertible notes due 2020, at a price of $1,000 per $1,000 of principal amount. After giving effect to the purchase of the tendered notes, approximately $5 million principal amount of the notes remain outstanding.



As of Sept. 30, 2010, the Company had approximately $2.4 billion in total cash and investments, of which $389 million was restricted, up from $2.0 billion of which $530 million was restricted on Sept. 30, 2009.



Business Outlook



Parker continued, "Looking forward, our plan is simple: Continue to take care of our customers by delivering superior operational results; maintain capacity discipline; aggressively manage our costs; and focus our assets in the markets that produce the best financial results for our airline."



Other Notable Accomplishments



•Announced daily, nonstop seasonal summer service from Charlotte Douglas International Airport to Madrid, Spain and to Dublin, Ireland, which will begin in May 2011. The new flights complement US Airways' daily, nonstop year-round service to both destinations from Philadelphia, the airline's international gateway.
•Announced new service to seven cities and increased service to three existing markets from New York's LaGuardia Airport, effective Oct. 31. The new and expanded service will be operated by US Airways Express partners Air Wisconsin, Chautauqua Airlines, Piedmont Airlines, PSA Airlines and Republic Airways.
•Announced a new bilateral codeshare agreement with Star Alliance partner, Turkish Airlines. US Airways customers will have access to Istanbul, Turkey via Turkish Airlines service from Frankfurt, Munich and Zurich and will gain access to four new destinations including Adana, Izmir, Antalya and Ankara, Turkey via Istanbul. Nonstop travel options to Istanbul are also available for US Airways customers via Turkish Airlines service at New York's John F. Kennedy International Airport and Chicago O'Hare International Airport.
•Launched FastPathSM – an expedited airport experience for customers traveling between Boston and Philadelphia. FastPath features dedicated facilities for curbside check-in and bag drop, ticket counter check-in, security checkpoint lanes, departure gates and baggage claim carousels.
•Received distinction as one of the 50 best companies for Latinas by LATINA Style magazine for 2010. US Airways was the only airline included among the top 50 companies. Also during the quarter, the Company received distinction as one of "Best Places to Work" and earned a 100 percent rating on the Human Rights Campaign's Corporate Equality Index, which measures companies' attitudes and policies toward lesbian, gay, bisexual and transgender employees and customers. This is the sixth year in a row the airline has achieved a perfect score.


Analyst Conference Call/Webcast Details



US Airways will conduct a live audio webcast of its earnings call today at 1:00 p.m. EDT, which will be available to the public on a listen-only basis at www.usairways.com under the Company Info >> Investor Relations tab. An archive of the call/webcast will be available in the Public/Investor Relations portion of the Web site through Nov. 20, 2010.



Investor Guidance



The Company will provide its investor relations guidance on its Web site (www.usairways.com) immediately following its 1:00 p.m. EDT conference call. The Company typically provides guidance related to cost per available seat mile (CASM) excluding fuel, special items and profit sharing, fuel prices and hedging positions, other revenues and estimated interest expense/income on its investor relations update page on its web site. This update will also include the airline's capacity, fleet plan, and estimated capital spending for 2010.



About US Airways



US Airways, along with US Airways Shuttle and US Airways Express, operates more than 3,100 flights per day and serves more than 200 communities in the U.S., Canada, Mexico, Europe, the Middle East, the Caribbean, Central and South America. The airline employs more than 31,000 aviation professionals worldwide and is a member of the Star Alliance network, which offers its customers more than 21,200 daily flights to 1,172 airports in 181 countries. Together with its US Airways Express partners, the airline serves approximately 80 million passengers each year and operates hubs in Charlotte, N.C., Philadelphia and Phoenix, and a focus city in Washington, D.C. at Ronald Reagan Washington National Airport. For more company information, visit usairways.com. (LCCF)



Forward Looking Statements



Certain of the statements contained or referred to herein should be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by words such as "may," "will," "expect," "intend," "anticipate," "believe," "estimate," "plan," "project," "could," "should," and "continue" and similar terms used in connection with statements regarding, among others, the outlook, expected fuel costs, revenue and pricing environment, and expected financial performance and liquidity position of US Airways Group (the "Company"). Such statements include, but are not limited to, statements about future financial and operating results, the Company's plans, objectives, expectations and intentions, and other statements that are not historical facts. These statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties that could cause the Company's actual results and financial position to differ materially from these statements. Such risks and uncertainties include, but are not limited to, the following: the impact of significant operating losses in the future; downturns in economic conditions and their impact on passenger demand and related revenues; increased costs of financing, a reduction in the availability of financing and fluctuations in interest rates; the impact of the price and availability of fuel and significant disruptions in the supply of aircraft fuel; the Company's high level of fixed obligations and its ability to fund general corporate requirements, obtain additional financing and respond to competitive developments; any failure to comply with the liquidity covenants contained in the Company's financing arrangements; provisions in the Company's credit card processing and other commercial agreements that may affect its liquidity; the impact of union disputes, employee strikes and other labor-related disruptions; the Company's inability to maintain labor costs at competitive levels; the Company's reliance on third party regional operators or third party service providers; the Company's reliance on automated systems and the impact of any failure or disruption of these systems; the impact of changes to the Company's business model; competitive practices in the industry, including the impact of industry consolidation; the loss of key personnel or the Company's ability to attract and retain qualified personnel; the impact of conflicts overseas or terrorist attacks, and the impact of ongoing security concerns; changes in government legislation and regulation; the Company's ability to operate and grow its route network; the impact of environmental laws and regulations; costs of ongoing data security compliance requirements and the impact of any data security breach; interruptions or disruptions in service at one or more of the Company's hub airports; the impact of any accident involving the Company's aircraft or the aircraft of its regional operators; delays in scheduled aircraft deliveries or other loss of anticipated fleet capacity; the impact of weather conditions and seasonality of airline travel; the impact of possible future increases in insurance costs and disruptions to insurance markets; the impact of global events that affect travel behavior, such as an outbreak of a contagious disease; the impact of foreign currency exchange rate fluctuations; the Company's ability to use NOLs and certain other tax attributes; and other risks and uncertainties listed from time to time in the Company's reports to and filings with the SEC. There may be other factors not identified above of which the Company is not currently aware that may affect matters discussed in the forward-looking statements, and may also cause actual results to differ materially from those discussed. The Company assumes no obligation to publicly update or supplement any forward-looking statement to reflect actual results, changes in assumptions or changes in other factors affecting such estimates other than as required by law. Additional factors that may affect the future results of the Company are set forth in the section entitled "Risk Factors" in the Company's Report on Form 10-Q for the quarter ended September 30, 2010 and in the Company's other filings with the SEC, which are available at www.usairways.com.



US Airways Group, Inc. 
Condensed Consolidated Statements of Operations 
(In millions, except share and per share amounts) 
(Unaudited) 

[setravis]

LCC  US Airways Reports Record Third Quarter Profit 
With Bullish Strength

52wk Range: 2.82 - 11.40
Volume: 19,894,781
Avg Vol (3m): 7,281,260
Market Cap: 1.75B
P/E (ttm): 21.90
EPS (ttm): 0.50
Div & Yield: N/A (N/A)

Technicals
Last Price Quote is:
10.96%above 13-day MA
15.51%above 50-day MA
RS Rating: 82