After a lengthy dry spell in which Wall Street either completely ignored airlines or drove their per-share prices down beyond measure, US Airways signaled that the market may be softening on airline prospects now that fuel is moderating. Its recent stock offerings yielded $179 million after underwriting deductions and will be used for general corporate purposes. The transaction, underwritten by Merrill Lynch & Co. as sole book runner, included the issuance of 19.0 million shares at a price of $8.50 per share as well as the full exercise of 2.85 million shares included in the overallotment option granted by the company at the same price.
"We are extremely pleased with the outcome of this transaction, which further strengthens our liquidity position,” said Senior Vice President and Chief Financial Officer Derek Kerr. “Despite the fact that the industry continues to face stubbornly high fuel prices and a deteriorating economic environment, this transaction demonstrates the market's confidence in US Airways' ability to persevere in these new and challenging times. While we still have a lot of hard work to do, our business transformation plan continues to gain momentum and we look forward to reporting on our other initiatives that are currently underway."