PHOENIX (AP) — US Airways Group Inc. yesterday said profit edged up 2 percent in the first quarter on modest revenue growth, and the airline company backed its forecast for a profitable year.The news sent shares in the Tempe, Arizona-based company up more than 2 percent in midday trading on the New York Stock Exchange.

Earnings totalled $66 million, or 70 cents per share, for the January-March period compared with $65 million, or 76 cents per share, in the first quarter of 2006. Excluding one-time credits and other items, earnings per share would have totalled 37 cents versus 5 cents a year ago.

Revenue grew 4 percent to $2.73 billion from $2.63 billion a year earlier. Analysts polled by Thomson Financial, on average, forecast earnings of 12 cents per share and revenue of $2.74 billion. Those estimates typically exclude one-time items.

Chairman and chief executive Doug Parker called the quarter "extremely difficult," citing bad weather which closed the airline's Philadelphia hub temporarily and disrupted operations across the Northeast and a switch to a single reservation system which disrupted service.

Calyon Securities analyst Ray Neidl said the results came in above what he expected, especially because of the storms and during a traditionally weak quarter for airlines, and bodes well for the coming year's results.

"It was a pleasant surprise," Neidl said. "If they can turn a profit in the first quarter, I think they'll do well for the rest of the year."

Parker said higher fuel prices are "once again having a material effect on our outlook." He expects fuel costs to exceed the budget by $300 million in 2007, but still expects a profitable second quarter and full year.

US Airways Group, formed by the September 2005 combination of bankrupt US Airways and America West Airlines, posted a full-year profit of $303 million in 2006.

It made an unsuccessful takeover bid for Delta Air Lines Inc. earlier this year but dropped the offer amid resistance from Delta and its creditors.

US Airways shares fell 90 cents, or 2.1 percent, to $41.75 in afternoon trading on the NYSE.