American’s revenue momentum continues as US Airways intensifies merger push

Top management at US Airways continues to push its argument that a combination with American Airlines would address the severe network challenges American has created for itself during the last few years as it sat out a major wave of industry consolidation in the US. There is credibility in the theory that an American-US Airways tie-up would create a carrier of significant scale to rival the giants that United and Delta have become.

But at the same time US Airways is emphasising American's network weakness, the Dallas-based carrier is recording revenue gains that are industry-leading, which indicates US Airways maybe the the larger benefactor if the merger becomes a reality. On the same day that US Airways CEO Doug Parker lambasted American's "cornerstone" strategy that centres American's network around five hubs in Dallas, Chicago, Miami, New York and Los Angeles, American recorded a 2Q2012 rise in consolidated unit revenues of 9.1% and year-over-year growth in domestic unit revenues of 8.6%. The company's 5.5% rise in revenue for 2Q2012 to USD6.5 billion was the highest in its history, according to the carrier.