US Airways able to pass on high cost of fuel-CEO

TEMPE, Ariz., April 6 Wed Apr 6, 2011 1:41pm EDT

TEMPE, Ariz., April 6 (Reuters) - US Airways LCC.N is still able to pass along the cost of fuel despite sharply rising prices, the company's chief executive said on Wednesday.

Doug Parker told Reuters in an interview that the main concern about oil is whether price increases will go high enough to slow the economy and hurt travel demand.

But Parker said bookings remain strong and that while no merger is expected in the near term, a deal with any of the carrier's three biggest rivals would be a good fit.

US Airways shares were off 1 percent in afternoon trade on the New York Stock Exchange as another hike in global oil prices buffeted airlines on Wall Street.

(Reporting by Kyle Peterson; Editing by Phil Berlowitz)

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