US Airways has, again, reported record net income for its 3rd quarter and, once again, has made a better argument for a merger than any of the posturing that goes on in the press.

This is an executive team that continues to deal with contentious crew issues, a still separated flight system and yet has managed to fix major customer issues and operate an on-time, profitable airline. Believe me when I say that that isn’t happening simply because they have some low(ish) labor costs.

Costs are *not* the only key item for profitable, successful airlines.  You have to attract people to your business and keep them there.  That’s about service and US Airways is a whole lot better airline today for the money than it ever was before.

The executive team manages to outperform many airlines on earnings vs revenues  and does it from sub-standard hubs.  US Airways has all of the handicaps, none of the advantages and earned $192 million on revenues of $3.5 billion.  American Airlines managed to lose money on revenues of $7 billion and that’s with their costs artificially depressed at this point due to bankruptcy.

Hey AA?  Do you like apples?

Yes?

How do you like those apples?

Filed under: Airline News by ajax