Dahlman Rose Comments On US Airways Group March And 1Q11 Traffis Results

According to Dahlman Rose, US Airways Group LCC announced March and 1Q11 traffic results in line with expectations. Dahlman Rose reported that the company updated 1Q11 and full year guidance. “Management expects average jet fuel prices of $3.20 - $3.32 for the remainder of the year. We are lowering our 1Q11, 2011 estimates and price target. US Airways expects to grow capacity for 2011 by 1%-2%. Mainline is expected to be up by 2% with domestic capacity up slightly and international capacity up by 5%. Express capacity is expected to be down by 1%. For 1Q11, US Airways expects jet fuel in the $2.84 - $2.89 range, and for the remainder of the year, management expects fuel to be in the $3.20 - $3.32 range. US Airways continues to have no jet fuel hedges in place and as a result will see the most impact from the rising cost of jet fuel.” US Airways Group closed yesterday at $8.45.