US Airways cut 10 aircraft from fleet, may see 2nd qrt profit

US Airways ended the 1st quarter with a loss, but with $2 billion of cash on the balance sheet, of which $1.6 billion was unrestricted. The airline says that if improvements continue it may see a profit the second qrt. 2010.

US Airways’ mainline fleet will be reduced by 10 net aircraft to 339 by year end, representing the removal of 14 aircraft and the addition of four, according to Executive VP and CFO Derek Kerr. He said the airline will retire five of its 24 737-300s, five of 28 757-200s, and four of 19 E-190s – all of which are dedicated to the East Coast shuttles.

It added two A320s and two A330-200s in the first quarter, the only aircraft it will take in 2010. It will add 12 A320s each in 2011 and 2012. Kerr said it will be out of its 737 Classics within five years while it will retain around 23 757s dedicated to its transatlantic and Hawaiian networks. Last year it deferred delivery of 54 Airbus aircraft.

Some believe US Airways is still a player in the consolidation scene, even though it recently decided to end merger talks with United Airlines. The triggers could be higher fuel costs, and economic recovery with more unemployment, and little or no growth in jobs.