US Airways 1Q loss shrinks with help from improving fuel hedges

US Airways 1Q loss shrinks as fuel hedges improve

MINNEAPOLIS — US Airways said its first-quarter loss shrank as some of its old fuel hedging contracts turned positive.

The carrier also said on Thursday it will begin charging passengers and extra $5 per bag to check luggage at the airport rather than online.

Tempe, Ariz.-based US Airways Group Inc. said it lost $103 million, or 90 cents per share, for the quarter that ended March 31, compared with a loss of $237 million, or $2.58 per share, during the same period last year. Revenue fell 13.5 percent to $2.46 billion, from $2.84 billion a year ago.

For the first time in a while, fuel hedges helped. The company booked $157 million in special items including an unrealized gain on outstanding fuel hedge contracts which had been booked as a loss in previous quarters.

If not for the improving fuel hedges, US Airways says it would have lost $260 million, or $2.28 per share. That was slightly better than the expectation of analysts surveyed by Thomson Reuters, who expected a loss of $2.38 per share on revenue of $2.5 billion.

US Airways charges $15 for the first checked bag and $25 for the second. But an extra $5 per bag now will be charged to passengers who pay those fees at the airport. Passengers can avoid the extra $5 charge if they prepay their baggage fees by checking in online.

The change applies with tickets booked on Thursday for flights beginning July 9. The airline doesn’t charge to check baggage for travelers with “preferred” status on its frequent-flier program, those flying across the Atlantic, and military personnel on active duty.

In premarket trading US Airways shares rose 34 cents, or 7.8 percent, to $4.70.