US Airways to Buy Back Preferred Stock

US Airways Group Inc., reversing an earlier decision, said it will buy back a portion of the airline’s preferred stock held by British Airways for $126.2 million. It said the British carrier had agreed to convert the balance of its holdings to common stock no later than June 3. “We see this as a very attractive opportunity to purchase stock at a discount to current market” value, US Airways Chairman Stephen M. Wolf said. US Airways said in February that it would not buy back the holdings, but it apparently changed its mind after determining it had the money. The announcement is part of the financial settlement worked out to end the relationship that began four years ago when British Air pumped $400 million into the Arlington, Va.-based carrier to help it survive. US Airways shares rose $2.75 to close at $37.875 on the NYSE, while American depositary receipts of British Air lost 50 cents to close at $120.