US Airways stock up 9 percent

Shares of US Airways Group Inc. surged more than 9 percent Tuesday after the airline posted a first-quarter profit, surprising analysts who expected a loss for the quarter.

The Tempe-based airline, created in September by the combination of bankrupt US Airways and America West Airlines, reported quarterly earnings of $65 million, or 76 cents per share, compared with a loss of $174 million, or $6.58 per share, a year ago. Excluding special items, the company posted a profit of $5 million, or 5 cents per share, versus a loss of $16 million, or $1.09 per share, in the year-earlier quarter.

Analysts on average expected a loss of 16 cents per share, according to a Thomson Financial poll.

“Those guys deserve the accolades,” said Ray Neidl, an analyst with Calyon Securities Inc. who tracks the airline industry and estimated a 20 cent per-share loss for the quarter. “Making a profit in the first quarter with $75 per barrel oil is quite a feat.”

•McDonald’s Corp. reported its largest monthly sales increase Tuesday in more than a year, announcing a 6.2 percent rise in global same-store sales that was boosted by unusually strong sales in Europe and continuing momentum in the United States.

Same-store sales, or those from restaurants open at least 13 months, jumped 9.3 percent in Europe. The company said sales benefited from a limited-time offering of premium beef and chicken sandwiches in Germany and France and a Monopoly game promotion in the United Kingdom, as well as the shift of Easter into April.

U.S. restaurants saw same-store sales grow 4.1 percent, bolstered by demand for chicken sandwiches, a booming breakfast business and extended hours. The increase was 6.5 percent in the region encompassing the Asia/Pacific, the Middle East and Africa, driven by strong sales in Japan and Australia, the company said.

•AOL is laying off about 1,300 employees, or 7 percent of its worldwide work force, and is closing its call center in Jacksonville, Fla.

Other cuts will come from call centers in Ogden, Utah, and Tucson, Ariz.

The layoffs announced Tuesday represent the first major cuts since the Time Warner Inc. Internet unit cut about 700 positions last fall.

Although AOL’s subscription has been declining, spokesman Nicholas Graham attributed the layoffs to more savvy customers and better tools for them to help themselves.