This week US Airways Group, Inc. announced increases in traffic in its June, second quarter and year-to-date 2010 results. Mainline revenue passenger miles (RPMs) for June were 5.6 billion, up 2.9 percent as compared to June 2009. Mainline capacity was 6.4 billion available seat miles (ASMs), up 2.8 percent versus June 2009. Mainline passenger load factor was a record 86.9 percent for the month of June, up 0.1 points versus June 2009.

US Airways President Scott Kirby said, "Our June consolidated (mainline and Express) passenger revenue per available seat mile (PRASM) increased approximately 22 percent versus the same period last year, while total revenue per available seat mile increased approximately 23 percent on a year-over-year basis." US Airways shares have rallied, and the carrier is expected to return to profit this year.

"We're perfectly happy with [our] standalone" status, Doug Parker told The Wall Street Journal in an interview last month. "We don't accept the premise that we need to do a transaction, or that there's only one partner."

For an airline that some investors and analysts pronounced in deep trouble two months ago, US Airways is displaying many signs of health, the Wall Street Journal says. As the economic recovery lifts the industry's fortunes, US Airways stock has risen 79% this year, sharply outperforming its rivals. UAL's shares, the industry's next-biggest gainer, are up nearly 61%, while Continental's are up 24%.

Airline analysts are raising their ratings on US Airways, with eight of the 11 who follow the stock designating it as a "buy" or a "strong buy." US Airways is expected to be profitable for the second and third quarters and the full year, following year-earlier losses.

"I can't explain why others thought we were in worse shape than we were," said Parker. "Incorrectly, but understandably, our continued focus on getting a transaction done led people to think we absolutely had to do it."

The past two years have been tough for the industry, as skyrocketing fuel prices in 2008 were followed by last year's deep recession. According to Parker, those pressures distracted investors from the progress US Airways was making in controlling its costs, raising liquidity, boosting revenue from sources like checked-baggage fees, and improving punctuality. "All we needed was for the economy to come back," he said.

Michael Linenberg of Deutsche Bank said in a recent research note that US Airways has been unfairly tarred by the assumption that it is weaker than its rivals. "Do they need to merge?" asked analyst Bob McAdoo of Avondale Partners LLC. "No. They're as good as anybody."

(Includes excerpts from Business Wire and The Wall Street Journal)