Dahlman Rose Discussses Earnings From US Airways (LCC)

Dahlman Rose & Co. has a Hold rating on shares of US Airways LCC after it reported earnings. In a note to investors, Dahlman Rose writes, "Management updated its outlook for 2011 on its 1Q11 earnings release conference call. April unit revenue is estimated to increase by 6%; May and June are estimated to increase by ~10%. Generally the second and third quarters are the strongest of the year. As a result of higher fuel costs, management is reducing 2H11 capacity to growth to increase by 1%, which is lowest among the major airlines. Given 1Q11 results and 2011 guidance we lowered our 2011 EPS estimate to $0.02 from our prior estimate of $0.88. Our preliminary 2012 EPS estimate is $0.77, which implies minimal capacity growth." Shares of LCC closed at $8.80 yesterday.