US Airways 8-K Results of Operations and Financial Condition

Exhibit 99.1

INVESTOR RELATIONS UPDATE
October 5, 2011

General Comments

•	2011 Capacity Guidance- 2011 total system capacity is expected to be up approximately one percent vs. 2010. Domestic capacity is expected to be up slightly and international up approximately three percent.
•	Cash- As of June 30, 2011, the Company had $2.64 billion in total cash and investments, of which $388 million was restricted.
	On June 30, the Company announced an offering of Class C EETCs in the aggregate principal amount of approximately $53 million. This offering was an issuance of Class C certificates under the Company’s Series 2010-1 series of EETCs which originally closed in December 2010. The net proceeds from the offering will be used for general corporate purposes. This offering closed at the beginning of the third quarter and, accordingly, the proceeds will be reflected in the Company’s third quarter cash and investments balance.
	In July, the Company monetized the remaining $19 million of its auction rate security position (classified as short-term investments on the Company’s 2Q balance sheet). As a result, the Company no longer has an investment in these financial instruments.
	The Company expects to end the third quarter 2011 with approximately $2.42 billion in total cash, of which approximately $380 million is restricted.
•	Fuel- For the third quarter 2011, the Company anticipates paying an average of between $3.11 and $3.16 per gallon of mainline jet fuel (including taxes). Forecasted volume and fuel prices are provided in the table below.
•	Profit Sharing / CASM- Profit sharing equals approximately 10% of pre-tax earnings excluding special items up to a 10% pre-tax margin and 15% above the 10% margin. Profit sharing is excluded in the CASM guidance given below.
•	Cargo / Other Revenue- Cargo revenue, ticket change fees, excess / overweight baggage fees, first and second bag fees, contract services, simulator rental, airport clubs, and inflight service revenues.
•	Taxes / NOLAs of December 31, 2010, net operating losses (NOL) available for use by the Company is approximately $1.9 billion, all of which is expected to be available for use in 2011. The Company’s net deferred tax asset, which includes the NOL, is subject to a full valuation allowance. As of December 31, 2010, the valuation allowances associated with Federal and state NOL are $368 million and $62 million, respectively. In accordance with generally accepted accounting principles, future utilization of the NOL will result in a corresponding decrease in the valuation allowance and offset the Company’s tax provision dollar for dollar. As a result, income tax benefits are not currently recognized in the Company’s statement of operations.
	The Company reported a loss in the six months ended June 30, 2011 and did not recognize a tax provision in this period. To the extent profitable, the Company generally will use NOL to reduce Federal and state taxable income in 2011. The Company also may be subject to AMT liability and obligated to record and pay state income tax related to certain states where NOL may be limited or not available to be used, if profitable in 2011.
	In connection with the sale of the Company’s final investment in auction rate securities in July 2011, the Company expects to record a $21 million special non-cash tax charge in the third quarter of 2011. This recognizes in the statement of operations the tax provision recorded in Other Comprehensive Income, a subset of stockholders’ equity, in the fourth quarter of 2009.

Please refer to the footnotes and the forward looking statements page of this document for additional information

MAINLINE UPDATE
October 5, 2011

Mainline Comments

• Mainline data includes US Airways operated flights and all operating expenses are for mainline operated flights only. Please refer to the following page for information pertaining to Express.

Mainline Guidance	1Q11A	2Q11A	3Q11E	4Q11E	FY11E
Available Seat Miles (ASMs) (bil)	17.0	19.1	~19.0	~17.4	~72.6
CASM ex fuel, special items and profit sharing (YOY % change)1	8.76	8.16	+1% to +3%	+3% to +5%	0% to +2%
Cargo Revenues ($ mil)	43	43	~40	~45	~170
Other Revenues	333	345	~330	~310	~1,318
Percent Hedged	—	—	—	—	—
Average Fuel Price (incl. taxes) ($/gal) (as of 10/03/2011)	2.87	3.29	3.11 — 3.16	2.95 — 3.00	3.06 — 3.11
Fuel Gallons Consumed (mil)	256	288	~289	~262	~1,095
Interest Income ($ mil)	(1)	(1)	~(1)	~(2)	~(6)
Interest Expense ($ mil)	77	79	~85	~87	~327
Other Non-Operating (Income)/Expense ex special items ($ mil)2	(1)	(1)	~14	~1	~13

Cash Flow/Capital Update ($ mil) Inflow/(Outflow)	1Q11A	2Q11A	3Q11E	4Q11E	FY11E
Cash Capex (non-aircraft)	(30)	(37)	~(51)	~(52)	~(170)
Net new aircraft Capex and PDPs	(10)	4	~(6)	~0	~(11)
Net Other Cash Flow Adjustments3	(88)	37	~(2)	~(63)	~(115)

Notes:
1.	CASM ex fuel, special items and profit sharing is a non-GAAP financial measure. Please see the GAAP to non-GAAP reconciliation at the end of this document
2.	Other Non-Operating (Income)/Expense ex special items include primarily gains and losses from foreign currency and the disposition of assets
3.	Debt principal repayment, aircraft refinancing, non-cash bond discount amortization/interest deferrals (included in interest expense), and other non-cash items

Please refer to the footnotes and the forward looking statements page of this document for additional information

EXPRESS UPDATE
October 5, 2011

Express Comments

• US Airways Express is a network of nine regional airlines (2 wholly owned) operating under code share and service agreements with US Airways. All operating expenses (including purchase agreements) associated with US Airways Express are included within the Express Non-Fuel Operating Expense line item on our income statement.

• Express CASM excluding fuel and special items is forecasted to be up six to eight percent for the year primarily due to the timing of maintenance programs at the Company’s wholly-owned subsidiary, PSA. The maintenance honeymoon for the CRJ-200 fleet ended in 2010. The additional PSA CRJ-200 maintenance expense increases Express CASM excluding fuel and special items by approximately 4 points on a year-over-year basis.

Express Guidance

	1Q11A	2Q11A	3Q11E	4Q11E	FY11E
Available Seat Miles (ASMs) (bil)	3.49	3.69	~3.56	~3.31	~14.05
CASM ex fuel and special items (YOY % change)1	15.10	14.21	+9% to +11%	+7% to +9%	+6% to +8%
Average Fuel Price (incl taxes) ($/gal)	2.92	3.28	3.14 — 3.19	2.99 — 3.04	3.08 — 3.13
Fuel Gallons Consumed (mil)	83	88	~86	~80	~337

Express Carriers

Air Wisconsin Airlines Corporation	Piedmont Airlines, Inc.2
Chautauqua Airlines, Inc.	PSA Airlines, Inc.2
Colgan Air, Inc.4	Republic Airline Inc.
Mesa Airlines, Inc.3	Trans States Airlines, Inc. 4
Mesaba Airlines4

Notes:
1.	CASM ex fuel expense and special items is a non-GAAP financial measure. Please see the GAAP to non-GAAP reconciliation at the end of this document.
2.	Wholly owned subsidiary of US Airways Group, Inc.
3.	Subsidiary of Mesa Air Group, Inc.
4.	Pro-rate agreement.

Please refer to the footnotes and the forward looking statements page of this document for additional information

FLEET UPDATE
October 5, 2011

Fleet Comments

• During the third quarter, the Company took possession of 3 of its 12 A321 aircraft deliveries scheduled for 2011. The Company expects to take delivery of the remaining 9 A321 aircraft in the fourth quarter 2011 and an additional 12 A320 family aircraft in 2012. These 24 aircraft will be used to replace legacy 737 aircraft. The Company has financing commitments secured for these aircraft.

Mainline Fleet Update (End of Period)

	YE10A		1Q11A		2Q11A		3Q11A		4Q11E
Mainline
EMB-190		15		15		15		15		15
737-300		19		19		17		15		7
737-400		40		40		40		40		40
A319		93		93		93		93		93
A320		72		72		72		72		72
A321		51		51		51		54		63
A330		16		16		16		16		16
B757		23		24		24		24		24
B767		10		10		10		10		10
Total		339		340		338		339		340

Express Fleet Update (End of Period)

	YE10A		1Q11A		2Q11A		3Q11A		4Q11E
Express
DH8		50		50		50		50		50
CRJ-200		112		112		112		112		112
CRJ-700		14		14		14		14		14
CRJ-900		38		38		38		38		38
EMB-170		20		20		20		20		20
ERJ-145		9		9		9		9		9
EMB-175		38		38		38		38		38
Total		281		281		281		281		281

Please refer to the footnotes and the forward looking statements page of this document for additional information

SHARES OUTSTANDING
October 5, 2011

• The estimated weighted average shares outstanding for the remainder of the year are listed below. The interest addback to net income for purposes of computing diluted earnings per share is net of the related effect of profit sharing.

Shares Outstanding ($ and shares mil)1	Basic		Diluted		Interest Addback
For Q3-Q4
Earnings above $70 million		162.1		201.4		7.0
Earnings between $30 million and $70 million		162.1		201.2		7.0
Earnings up to $30 million		162.1		163.5		—
Net Loss		162.1		162.1		—
For FY 2011 (Average)
Earnings above $282 million		162.0		201.8		27.0
Earnings between $116 million and $282 million		162.0		201.6		26.7
Earnings up to $116 million		162.0		163.8		—
Net Loss		162.0		162.0		—

Notes: 1. Shares outstanding are based upon several estimates and assumptions, including average per share stock price, stock options, stock appreciation rights, restricted stock unit award activity, and conversion of outstanding senior convertible notes. The number of shares in the actual calculation of earnings per share will likely be different from those set forth above.

Please refer to the footnotes and the forward looking statements page of this document for additional information

GAAP to Non-GAAP RECONCILIATION
October 5, 2011

Reconciliation of GAAP to Non-GAAP Financial Information

The Company is providing disclosure of the reconciliation of reported non-GAAP financial measures to their comparable financial measures on a GAAP basis. The Company believes that the non-GAAP financial measures provide investors the ability to measure financial performance excluding special items and profit sharing, which is more indicative of the Company’s ongoing performance and is more comparable to measures reported by other major airlines. The Company believes that the presentation of mainline CASM excluding fuel, special items & profit sharing and Express CASM excluding fuel and special items is useful to investors as both the cost and availability of fuel are subject to many economic and political factors beyond the Company’s control.

	GAAP to Non-GAAP Reconciliation ($ mil except ASM and CASM data)
	1Q11			2Q11			3Q11 Range				4Q11 Range				FY11 Range
	Actual			Actual			Low		High		Low		High		Low		High
Mainline
Mainline operating expenses excluding profit sharing	$	2,230		$	2,515		$	2,421	$	2,465	$	2,277	$	2,319	$	9,375	$	9,523
Less mainline fuel (net of (gains)/losses from fuel hedges)		734			948			899		913		773		786		3,354		3,381
Less special items		3			6			—		—		—		—		9		9
Mainline operating expense excluding fuel, special items and profit sharing		1,493			1,561			1,522		1,552		1,504		1,533		6,013		6,133
Mainline CASM (excluding profit sharing) (cts)		13.09			13.15			12.74		12.97		13.08		13.33		12.92		13.13
Mainline CASM excluding fuel, special items and profit sharing (Non-GAAP) (cts)		8.76			8.16			8.01		8.17		8.64		8.81		8.30		8.47
Mainline ASMs (bil)		17.0			19.1			19.0		19.0		17.4		17.4		72.6		72.6
Express
Express operating expenses	$	770		$	811		$	788	$	802	$	728	$	741	$	3,093	$	3,140
Less express fuel expense		242			287			271		275		239		243		1,039		1,047
Less special items		1			—			—		—		—		—		1		1
Express operating expenses excluding fuel and special items		527			524			517		526		489		498		2,053		2,092
Express CASM (cts)		22.06			22.01			22.13		22.52		22.00		22.40		22.01		22.35
Express CASM excluding fuel and special items (Non-GAAP) (cts)		15.10			14.21			14.52		14.79		14.78		15.05		14.62		14.89
Express ASMs (bil)		3.49			3.69			3.56		3.56		3.31		3.31		14.05		14.05
Other Non Operating (Income)/Expense
Reported other non-operating (income)/expense	$	(1	)	$	7		$	14	$	14	$	1	$	1	$	21	$	21
Less special items		—			8			—		—		—		—		8		8
Other non-operating (income)/expense excluding special items		(1	)		(1	)		14		14		1		1		13		13

Note: Amounts may not recalculate due to rounding.

Please refer to the footnotes and the forward looking statements page of this document for additional information

FORWARD LOOKING STATEMENTS
October 5, 2011

FORWARD-LOOKING STATEMENTS

Certain of the statements contained or referred to herein are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by words such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “estimate,” “plan,” “project,” “could,” “should,” “would,” and “continue” and similar terms used in connection with statements regarding, among others, the outlook, expected fuel costs, revenue and pricing environment, and expected financial performance and liquidity position of the Company. Such statements include, but are not limited to, statements about future financial and operating results, the Company’s plans, objectives, expectations and intentions, and other statements that are not historical facts. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties that could cause the Company’s actual results and financial position to differ materially from these statements. Such risks and uncertainties include, but are not limited to, the following: the impact of significant operating losses in the future; downturns in economic conditions and their impact on passenger demand, booking practices and related revenues; increased costs of financing, a reduction in the availability of financing and fluctuations in interest rates; the impact of the price and availability of fuel and significant disruptions in the supply of aircraft fuel; our high level of fixed obligations and our ability to fund general corporate requirements, obtain additional financing and respond to competitive developments; any failure to comply with the liquidity covenants contained in our financing arrangements; provisions in our credit card processing and other commercial agreements that may affect our liquidity; the impact of union disputes, employee strikes and other labor-related disruptions; our inability to maintain labor costs at competitive levels; interruptions or disruptions in service at one or more of our hub airports or our focus city; our reliance on third-party regional operators or third-party service providers; our reliance on and costs, rights and functionality of third-party distribution channels, including those provided by global distribution systems, conventional travel agents and online travel agents; changes in government legislation and regulation; our reliance on automated systems and the impact of any failure or disruption of these systems; the impact of changes to our business model; competitive practices in the industry, including the impact of industry consolidation; the loss of key personnel or our ability to attract and retain qualified personnel; the impact of conflicts overseas or terrorist attacks, and the impact of ongoing security concerns; our ability to operate and grow our route network; the impact of environmental laws and regulations; costs of ongoing data security compliance requirements and the impact of any data security breach; the impact of any accident involving our aircraft or the aircraft of our regional operators; delays in scheduled aircraft deliveries or other loss of anticipated fleet capacity; the impact of weather conditions and seasonality of airline travel; the impact of possible future increases in insurance costs or reductions in available insurance coverage; the impact of global events that affect travel behavior, such as an outbreak of a contagious disease; the impact of foreign currency exchange rate fluctuations; our ability to use NOLs and certain other tax attributes; and other risks and uncertainties listed from time to time in our reports to and filings with the Securities and Exchange Commission (“SEC”). There may be other factors not identified above of which the Company is not currently aware that may affect matters discussed in the forward-looking statements, and may also cause actual results to differ materially from those discussed. The Company assumes no obligation to publicly update or supplement any forward-looking statement to reflect actual results, changes in assumptions or changes in other factors affecting such estimates other than as required by law. Additional factors that may affect the future results of the Company are set forth in the section entitled “Risk Factors” in the Company’s Report on Form 10-Q for the quarter ended June 30, 2011 and in the Company’s other filings with the SEC, which are available at www.usairways.com.

Please refer to the footnotes and the forward looking statements page of this document for additional information