Exhibit 99
US AIRWAYS GROUP, INC. REPORTS THIRD QUARTER RESULTS
$232 Million Net Loss for the Quarter; $375 Million
Net Loss Year-To-Date
ARLINGTON, Va., Oct. 28, 2004 -- US Airways Group, Inc. today reported a
net loss of $232 million for the third quarter 2004, compared to a net loss of
$90 million for the third quarter 2003. The net loss per share was $4.22 for
the third quarter of 2004, compared to a net loss of $1.69 per share for the
third quarter of 2003.
The third quarter 2004 pre-tax loss of $239 million compares to a pre-tax
loss of $91 million for the same quarter in 2003. Excluding unusual items,
the pre-tax loss for the third quarter 2004 was $227 million compared to $91
million in 2003 (see Note 5 for reconciliation).
"I am disappointed that we have reported yet another quarterly loss,
however, I am confident that we are charting a new course with a well-crafted
plan, that if fully implemented, can return US Airways to profitability," said
US Airways President and Chief Executive Officer Bruce R. Lakefield. "This is
a strong franchise, with hard-working employees who have the will to succeed,
and given the right cost structure, we will be successful."
Lakefield said that he was heartened by the ratification of a new labor
agreement by the Air Line Pilots Association (ALPA) and three work groups
represented by the Transport Workers Union (TWU). Additionally, the company
is in negotiations with its other unions, and continues to make progress in
all areas of its Transformation Plan, highlighted by the February 2005 change
to its business model where new flying and operational efficiencies will be
implemented. He noted that operating revenue for the third quarter 2004
improved to $1.80 billion from $1.77 billion for the third quarter of 2003,
which is a 1.6 percent increase year-over-year.
System passenger revenue per available seat mile (PRASM) for the third
quarter 2004 was 10.12 cents, down 3.4 percent compared to the third quarter
of 2003. Domestically, system PRASM fell 5.3 percent to 10.68 cents. System
statistics encompass mainline, MidAtlantic Airways, wholly owned airline
subsidiaries of US Airways Group, Inc. as well as capacity purchases from
third parties operating regional jets as US Airways Express. For US Airways
mainline operations only, the PRASM of 9.12 cents was down 3.1 percent.
System available seat miles (ASMs) were up 4.1 percent, while mainline
ASMs increased 2.1 percent during the third quarter 2004. Revenue passenger
miles (RPMs) increased 6.2 percent for the full US Airways system, while
mainline RPMs increased 3.3 percent. The third quarter system load factor of
76.1 percent was up 1.4 percentage points year-over-year. The mainline
passenger load factor was up 0.9 percentage points to 77.8 percent. For the
third quarter 2004, US Airways Group Inc.'s system carried 14.3 million
passengers, an increase of 4.2 percent, while mainline operations carried 10.4
million passengers, a 1.4 percent decrease compared to the same period of
2003. The third quarter 2004 yield for mainline operations of 11.73 cents
decreased 4.2 percent from the same period in 2003, while system yield was
down 5.3 percent to 13.29 cents.
US Airways Senior Vice President of Marketing and Planning B. Ben
Baldanza said that the company's Transformation Plan assumes that it will
continue to operate in an environment of high fuel prices, continued growth of
low-fare competition, diluted yields and more consumer dependency on the
Internet. "We long have recognized that the paradigm has shifted and that for
us to prosper, we would need to adapt to the changing marketplace realities.
To that extent, we are ahead of the other legacy carriers that are still in
the early phases of transformation," said Baldanza.
Baldanza added that certain key elements of the Transformation Plan are
in place. "We have increased the number of markets where we offer low
GoFares, introduced a February schedule that offers 25 new routes and 230 more
daily departures, and we are in the process of significantly enhancing our Web
site, usairways.com, for added convenience, reliability, and reduced
distribution costs," said Baldanza.
The mainline cost per available seat mile (CASM), excluding fuel and
unusual items, of 9.74 cents for the third quarter 2004, was a 2.3 percent
increase over the same period in 2003 (for a reconciliation of unit costs, see
Note 3 to the Selected Airline Operating and Financial Statistics).
US Airways' operational performance slipped during the third quarter, in
part due to an unusual hurricane season, severe summer storm activity in the
East, and an EDS driven computer malfunction in August that caused flight
delays and cancellations. Lost revenue and operational costs resulting from
the hurricanes is estimated to have cost the company at least $20 million. For
the quarter, US Airways mainline operations completed 97.3 percent of its
flights, with 80.7 percent of those flights arriving on time.
The cost of aviation fuel per gallon, including taxes, for the third
quarter 2004 was 111.5 cents (106.1 cents excluding taxes), up 29 percent from
the same period in 2003. Fuel hedging benefits, which partially mitigated the
dramatic increase in fuel price, improved results by $38 million, or 16.4
cents per gallon.
Despite the company's best efforts to mitigate the impact, the sustained
high price of fuel and the lack of any relief from record prices continue to
have a negative impact on cash flow. Lakefield said that senior management
has been tasked with carefully reviewing all aspects of operations in order to
further conserve cash and will take appropriate action as necessary in order
to remain in compliance with financing agreements.
Substantially all of the company's unrestricted cash (includes cash, cash
equivalents and short-term investments), constitutes cash collateral under the
Air Transportation Stabilization Board (ATSB) loan agreement. As of Sept. 30,
2004, $757 million of cash collateral was available for the company's use,
subject to certain limitations, under a cash collateral agreement with the
ATSB and approved by the Bankruptcy Court. The cash collateral agreement has
been extended through Jan. 14, 2005. Additionally, on Sept. 30, 2004,
restricted cash was $733 million, for a total cash position of $1.49 billion.
This compares to a total cash position of $1.73 billion at June 30, 2004,
which included $975 million of unrestricted cash.
Other notable developments:
* Announced more details of the Transformation Plan with a significant
restructuring of the flight schedule beginning Feb. 6, 2005, to include
improved aircraft utilization, changes to hub operations, and approximately
230 more daily flights using no additional aircraft.
* Engaged labor groups in discussions that led to pilots' ratification of
$300 million annual cost-savings agreement, which runs through 2009, and three
TWU groups' ratification of cost savings agreements. The company has given
proposals to its other labor groups.
* Expanded breadth of Star Alliance network through new bmi codeshare
agreement. Initially, US Airways' code will be added on bmi flights between
Manchester, U.K., and both Edinburgh and Glasgow, Scotland. Also expanded
GoCarribean network with addition of Bahamasair codeshare and marketing
agreement.
* Rolled out more low GoFares from several Pennsylvania cities, including
Pittsburgh, to seven West Coast destinations. These fares are in addition to
the GoFares already in place to and from Philadelphia. US Airways now has
GoFares on numerous routes in Pennsylvania, Florida, and Washington, D.C.
* Continued adding gate boarding pass scanners for expedited boarding and
passenger convenience. Scanners now are available at 19 airports in the U.S.,
with further expansion planned in 2005. US Airways anticipates adding more
than 75 self-service kiosks by the end of the year for easier check-in. 489
kiosks are currently deployed in 84 cities.
* Introduced a service fee for customers who desire personalized reservations
ticketing assistance. The fee applies for tickets purchased by calling US
Airways' toll-free reservations or visiting US Airways' airport and city
ticket counters. Shuttle tickets are exempt from the fee.
US Airways Group, Inc. and its domestic subsidiaries filed voluntary
petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code on
Sept. 12, 2004, providing the company the opportunity to implement its
Transformation Plan built on lower costs, a simplified fare structure, and
expanded service.
The court granted US Airways interim relief from the company's collective
bargaining agreements with the Association of Flight Attendants (AFA),
Communications Workers of America (CWA), and the International Association of
Machinists and Aerospace Workers (IAM) on Oct. 15, 2004, and approved the
company's new agreements with ALPA and the TWU on Oct. 26, 2004.
US Airways will not hold a third quarter results conference call.
Members of the media needing additional information should contact
US Airways Corporate Affairs at 703-872-5100. Analysts should contact US
Airways Investor Relations at 703-872-7923.
Certain of the statements contained herein should be considered "forward-
looking statements" within the meaning of the Private Securities Litigation
Reform Act of 1995, which reflect the current views of US Airways Group (the
"company") with respect to current events and financial performance. You can
identify these statements by forward-looking words such as "may," "will,"
"expect," "intend," "anticipate," "believe," "estimate," "plan," "could,"
"should," and "continue" or similar words. These forward-looking statements
may also use different phrases. Such forward-looking statements are and will
be, as the case may be, subject to many risks, uncertainties and factors
relating to the company's operations and business environment which may cause
the actual results of the company to be materially different from any future
results, express or implied, by such forward-looking statements. Factors that
could cause actual results to differ materially from these forward-looking
statements include, but are not limited to, the following: the ability of the
company to continue as a going concern; the ability of the company to obtain
and maintain any necessary financing for operations and other purposes,
whether debtor-in-possession financing or other financing; the ability of the
company to maintain adequate liquidity; the ability of the company to absorb
escalating fuel costs; the company's ability to obtain court approval with
respect to motions in the Chapter 11 proceeding prosecuted by it from time to
time; the ability of the company to develop, prosecute, confirm and consummate
one or more plans of reorganization with respect to the Chapter 11
proceedings; risks associated with third parties seeking and obtaining court
approval to terminate or shorten the exclusivity period for the company to
propose and confirm one or more plans of reorganization, for the appointment
of a Chapter 11 trustee or to convert the cases to Chapter 7 cases; the
ability of the company to obtain and maintain normal terms with vendors and
service providers; the company's ability to maintain contracts that are
critical to its operations; the potential adverse impact of the Chapter 11
proceedings on the company's liquidity or results of operations; the ability
of the company to operate pursuant to the terms of its financing facilities
(particularly the financial covenants); the ability of the company to fund and
execute its Transformation Plan during the Chapter 11 proceedings and in the
context of a plan of reorganization and thereafter; the ability of the company
to attract, motivate and/or retain key executives and associates; the ability
of the company to attract and retain customers; the ability of the company to
maintain satisfactory labor relations; demand for transportation in the
markets in which the company operates; economic conditions; labor costs;
financing availability and costs; security-related and insurance costs;
competitive pressures on pricing (particularly from lower-cost competitors)
and on demand (particularly from low-cost carriers and multi-carrier
alliances); weather conditions; government legislation and regulation; impact
of the Iraqi war and the Iraqi occupation; other acts of war or terrorism; and
other risks and uncertainties listed from time to time in the company's
reports to the 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 update
such estimates to reflect actual results, changes in assumptions or changes in
other factors affecting such estimates other than as required by law.
Similarly, these and other factors, including the terms of any reorganization
plan ultimately confirmed, can affect the value of the company's various pre-
petition liabilities, common stock and/or other equity securities.
Accordingly, the company urges that the appropriate caution be exercised with
respect to existing and future investments in any of these liabilities and/or
securities.
- -30-
NUMBER: 4825
US Airways Group, Inc. NEWS RELEASE
(Debtor-in-Possession)
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(dollars in millions, except per share amounts)
Successor Company (1)
--------------------------------------------
Three Months Ended Nine Months Ended
--------------------------- -----------------
September 30, September 30, September 30,
2004 2003 (2) 2004
------------ ------------- -------------
Operating Revenues
Passenger transportation (3) $ 1,601 $ 1,593 $ 4,875
Cargo and freight 31 31 99
Other 167 147 483
------ ------ ------
Total Operating Revenues 1,799 1,771 5,457
Operating Expenses
Personnel costs 653 656 1,921
Aviation fuel 282 210 777
US Airways Express capacity
purchases 204 179 596
Aircraft rent 114 104 335
Other rent and landing fees 106 111 314
Selling expenses 102 100 309
Aircraft maintenance 93 96 271
Depreciation and amortization 60 53 172
Special items -- -- --
Government compensation -- -- --
Other 362 299 998
------ ------ ------
Total Operating Expenses 1,976 1,808 5,693
------ ------ ------
Operating Income (Loss) (177) (37) (236)
Other Income (Expense)
Interest income 5 5 11
Interest expense, net (54) (56) (169)
Reorganization items, net (12) -- (12)
Other, net (1) (3) 23
------ ------ ------
Other Income (Expense), Net (62) (54) (147)
------ ------ ------
Income (Loss) Before Income Taxes (239) (91) (383)
Provision (Credit) for Income
Taxes (7) (1) (8)
------ ------ ------
Net Income (Loss) $ (232) $ (90) $ (375)
====== ====== ======
Earnings (Loss) per Common Share (4)
Basic $ (4.22) $ (1.69) $ (6.88)
Diluted $ (4.22) $ (1.69) $ (6.88)
Shares Used for Computation (000)
Basic 54,856 52,878 54,508
Diluted 54,856 52,878 54,508
Successor Company (1) Predecessor Company (1)
---------------------- -----------------------
Six Months Ended Three Months Ended
September 30, 2003 (2) March 31, 2003 (2)
-------------------- -------------------
Operating Revenues
Passenger transportation (3) $ 3,190 $ 1,358
Cargo and freight 65 35
Other 293 141
------ ------
Total Operating Revenues 3,548 1,534
Operating Expenses
Personnel costs 1,378 622
Aviation fuel 413 213
US Airways Express capacity purchases 334 130
Aircraft rent 215 109
Other rent and landing fees 213 106
Selling expenses 205 91
Aircraft maintenance 214 88
Depreciation and amortization 111 67
Special items 34 --
Government compensation (214) --
Other 614 315
------ ------
Total Operating Expenses 3,517 1,741
------ ------
Operating Income (Loss) 31 (207)
Other Income (Expense)
Interest income 10 1
Interest expense, net (111) (73)
Reorganization items, net -- 1,917
Other, net 6 (3)
------ ------
Other Income (Expense), Net (95) 1,842
------ ------
Income (Loss) Before Income Taxes (64) 1,635
Provision (Credit) for Income
Taxes 12 --
------ ------
Net Income (Loss) $ (76) $ 1,635
====== ======
Earnings (Loss) per Common Share (4)
Basic $ (1.43) $ 24.02
Diluted $ (1.43) $ 24.02
Shares Used for Computation (000)
Basic 53,262 68,076
Diluted 53,262 68,076
(1) Successor Company refers to US Airways Group, Inc. (US Airways Group or
the Company) on and after March 31, 2003, after giving effect to the
cancellation of the then existing common stock and the issuance of new
securities in accordance with its plan of reorganization, and application of
fresh-start reporting. Predecessor Company refers to US Airways Group prior to
March 31, 2003. As a result of the application of fresh-start reporting, the
Successor Company's financial statements are not comparable with the
Predecessor Company's financial statements.
(2) Certain prior year amounts have been reclassified to conform with the 2004
presentation. Among these, revenues related to capacity purchase agreements
with Mesa Airlines, Chautauqua Airlines, Trans States Airlines and Midway
Airlines were reclassified from "Other" to "Passenger transportation" and
"Cargo and freight," as applicable. In addition, expenses related to these
agreements, which were previously included in "Other," are presented
separately in "US Airways Express capacity purchases."
(3) Includes revenues related to capacity purchase agreements with Mesa
Airlines, Chautauqua Airlines, Trans States Airlines and Midway Airlines. See
also (2) above.
(4) Earnings (Loss) per Common Share amounts may not recalculate due to
rounding.
(5) Pursuant to SEC Regulation G, the table below shows a reconciliation of
Income (Loss) Before Income Taxes, Excluding Unusual Items, a non-GAAP
financial measure, to Net Income (Loss) reported on a GAAP basis. This non-
GAAP financial measure provides management the ability to measure and monitor
US Airways Group's financial performance excluding unusual items which is more
indicative of the Company's ongoing operating performance and is more
comparable to financial measures reported by other major network airlines.
Successor Company
------------------------------------------
Three Months Ended Nine Months Ended
------------------------ ----------------
September 30, September 30, September 30,
2004 2003 2004
------------ ------------ ------------
(dollars in millions)
Loss Before Income Taxes,
Excluding Unusual Items $ (227) $ (91) $ (371)
Unusual Items
Aircraft order
cancellation penalty (a) -- -- --
Government compensation (b) -- -- --
Reorganization items, net (c) (12) -- (12)
Other -- -- --
------ ----- -----
Total Unusual Items (12) -- (12)
Provision (Credit) for Income
Taxes (7) (1) (8)
----- ----- -----
Net Income (Loss) $ (232) $ (90) $ (375)
===== ===== =====
Successor Company Predecessor Company
-------------------- ---------------------
Six Months Ended Three Months Ended
September 30, 2003 March 31, 2003
-------------------- -----------------
(dollars in millions)
Loss Before Income Taxes,
Excluding Unusual Items $ (244) $ (282)
Unusual Items
Aircraft order cancellation penalty (a) (35) --
Government compensation (b) 214 --
Reorganization items, net (c) -- 1,917
Other 1 --
----- -----
Total Unusual Items 180 1,917
Provision (Credit) for Income Taxes 12 --
----- -----
Net Income (Loss) $ (76) $ 1,635
===== =====
(a) During the second quarter of 2003, US Airways, Inc. recorded a $35
million charge in connection with its intention to not take delivery of
certain aircraft scheduled for future delivery.
(b) During the second quarter of 2003, US Airways Group received proceeds of
$214 million, net of amounts due to affiliates, from the Transportation
Security Administration under the 2003 Emergency Wartime Supplemental
Appropriations Act as reimbursement for certain security fees.
(c) During the first quarter of 2003, US Airways Group recognized $1.92
billion in Other Income (Expense) incurred as a direct result of its 2002
Chapter 11 filing. This income includes, among other things, a $3.94 billion
gain on discharge of liabilities, a $967 million gain on restructured aircraft
financings and a $387 million net gain on the termination of certain pension
plans partially offset by $1.11 billion of adjustments related to the
revaluation of assets and liabilities in connection with fresh start
accounting, $2.17 billion in damage and deficiency claims and $51 million in
professional fees. For the three months and nine months ended September 30,
2004, US Airways Group recognized $12 million in professional fees directly
related to its 2004 Chapter 11 filing.
US Airways, Inc. NEWS RELEASE
(Debtor-in-Possession)
(A Wholly Owned Subsidiary of US Airways Group, Inc.)
STATEMENTS OF OPERATIONS
(unaudited)
(dollars in millions)
Successor Company (1)
---------------------------------------------
Three Months Ended Nine Months Ended
---------------------------
September 30, September 30, September 30,
2004 2003 (2) 2004
------------- ------------- -----------------
Operating Revenues
Passenger transportation (3) $ 1,601 $ 1,593 $ 4,875
Cargo and freight 31 31 99
Other 156 125 445
------- ------- -------
Total Operating Revenues 1,788 1,749 5,419
Operating Expenses
Personnel costs 591 587 1,732
Aviation fuel 260 195 718
US Airways Express capacity
purchases 327 311 981
Aircraft rent 106 96 307
Other rent and landing fees 101 103 299
Selling expenses 95 90 287
Aircraft maintenance 75 74 222
Depreciation and amortization 55 50 153
Special items -- -- --
Government compensation -- -- --
Other 336 280 940
------ ------ ------
Total Operating Expenses 1,946 1,786 5,639
------ ------ ------
Operating Income (Loss) (158) (37) (220)
Other Income (Expense)
Interest income 5 5 11
Interest expense, net (52) (54) (164)
Reorganization items, net (12) -- (12)
Other, net (2) (3) 20
------ ------ ------
Other Income (Expense), Net (61) (52) (145)
------ ------ ------
Income (Loss) Before Income Taxes (219) (89) (365)
Provision(Credit) for Income Taxes (5) (1) (6)
------ ------ ------
Net Income (Loss) $ (214) $ (88) $ (359)
====== ====== ======
Successor Company (1) Predecessor Company (1)
---------------------- ------------------------
Six Months Ended Three Months Ended
September 30, 2003 (2) March 31, 2003 (2)
---------------------- ------------------------
Operating Revenues
Passenger transportation (3) $ 3,190 $ 1,358
Cargo and freight 65 35
Other 253 119
------ ------
Total Operating Revenues 3,508 1,512
Operating Expenses
Personnel costs 1,250 562
Aviation fuel 383 197
US Airways Express capacity purchases 589 251
Aircraft rent 198 101
Other rent and landing fees 199 99
Selling expenses 186 83
Aircraft maintenance 171 70
Depreciation and amortization 102 63
Special items 34 --
Government compensation (212) --
Other 576 288
------ ------
Total Operating Expenses 3,476 1,714
------ ------
Operating Income (Loss) 32 (202)
Other Income (Expense)
Interest income 10 2
Interest expense, net (108) (73)
Reorganization items, net -- 1,888
Other, net 7 (2)
------ ------
Other Income (Expense), Net (91) 1,815
------ ------
Income (Loss) Before Income Taxes (59) 1,613
Provision (Credit) for Income Taxes 12 --
------ ------
Net Income (Loss) $ (71) $ 1,613
====== ======
(1) Successor Company refers to US Airways, Inc. on and after March 31, 2003,
after giving effect to fresh-start reporting. Predecessor Company refers to
US Airways, Inc. prior to March 31, 2003. As a result of the application of
fresh-start reporting, the Successor Company's financial statements are not
comparable with the Predecessor Company's financial statements.
(2) Certain prior year amounts have been reclassified to conform with the 2004
presentation. Among these, revenues related to capacity purchase agreements
with Allegheny Airlines, Piedmont Airlines, PSA Airlines, Mesa Airlines,
Chautauqua Airlines, Trans States Airlines and Midway Airlines were
reclassified from the former classification "US Airways Express transportation
revenues" to "Passenger transportation," "Cargo and freight" and "Other," as
applicable.
(3) Includes revenues related to capacity purchase agreements with Allegheny
Airlines, Piedmont Airlines, PSA Airlines, Mesa Airlines, Chautauqua Airlines,
Trans States Airlines and Midway Airlines. See also (2) above.
US Airways, Inc. NEWS RELEASE
(Debtor-in-Possession)
(A Wholly-Owned Subsidiary of US Airways Group, Inc.)
SELECTED AIRLINE OPERATING AND FINANCIAL STATISTICS (1)
(unaudited)
Three Months Ended September 30,
--------------------------------
%
2004 2003 Change
------- ------- --------
Revenue passenger miles (millions)*
System 12,044 11,344 6.2
Mainline 10,665 10,322 3.3
Available seat miles (millions)*
System 15,822 15,193 4.1
Mainline 13,713 13,431 2.1
Total available seat miles (millions)
System 15,823 15,196 4.1
Mainline 13,715 13,433 2.1
Passenger load factor*
System 76.1% 74.7% 1.4 pts.
Mainline 77.8% 76.9% 0.9 pts.
Yield*
System 13.29c 14.04c (5.3)
Mainline 11.73c 12.24c (4.2)
Passenger revenue per available
seat mile*
System 10.12c 10.48c (3.4)
Mainline (3) 9.12c 9.41c (3.1)
Revenue passengers (thousands)*
System 14,274 13,695 4.2
Mainline 10,441 10,584 (1.4)
Mainline revenue per available
seat mile* (3) 10.47c 10.56c (0.9)
Mainline cost per available seat
mile ("Mainline CASM")*(3) 11.59c 10.98c 5.6
Mainline CASM excluding unusual
items* (3) 11.59c 10.98c 5.6
Mainline CASM excluding aviation
fuel and unusual items* (3) 9.74c 9.52c 2.3
Average stage length (miles)* 801 795 0.8
Cost of aviation fuel per gallon 111.46c 86.30c 29.2
Cost of aviation fuel per gallon
(excluding fuel taxes) 106.11c 81.07c 30.9
Gallons of aviation fuel consumed
(millions) 227 226 0.4
Scheduled mileage completion
factor* 98.0% 98.9% (0.9) pts.
Number of aircraft in operating
fleet at period-end 282 279 1.1
Full-time equivalent employees at
period-end 26,835 26,300 2.0
Nine Months Ended September 30,
---------------------------------
%
2004 2003(2) Change
------- ------- --------
Revenue passenger miles (millions)*
System 34,138 31,050 9.9
Mainline 30,453 28,366 7.4
Available seat miles(millions)*
System 46,120 43,388 6.3
Mainline 40,220 38,602 4.2
Total available seat miles (millions)
System 46,124 43,472 6.1
Mainline 40,224 38,686 4.0
Passenger load factor*
System 74.0% 71.6% 2.4 pts.
Mainline 75.7% 73.5% 2.2 pts.
Yield*
System 14.28c 14.65c (2.5)
Mainline 12.59c 12.92c (2.6)
Passenger revenue per available
seat mile*
System 10.57c 10.48c 0.9
Mainline (3) 9.53c 9.50c 0.3
Revenue passengers (thousands)*
System 41,858 39,291 6.5
Mainline 31,362 30,866 1.6
Mainline revenue per available
seat mile* (3) 10.87c 10.69c 1.7
Mainline cost per available seat
mile ("Mainline CASM")*(3) 11.47c 11.25c 2.0
Mainline CASM excluding unusual
items* (3) 11.47c 11.71c (2.0)
Mainline CASM excluding aviation
fuel and unusual items* (3) 9.71c 10.21c (4.9)
Average stage length (miles)* 791 760 4.1
Cost of aviation fuel per gallon 104.40c 88.47c 18.0
Cost of aviation fuel per gallon
(excluding fuel taxes) 98.93c 83.17c 19.0
Gallons of aviation fuel consumed
(millions) 668 656 1.8
Scheduled mileage completion
factor* 99.0% 99.0% -- pts.
Number of aircraft in operating
fleet at period-end 282 279 1.1
Full-time equivalent employees at
period-end 26,835 26,300 2.0
* Scheduled service only (excludes charter service).
c - cents
(1) All statistics include US Airways' "Mainline" operations only unless
noted otherwise. System statistics encompass all wholly
owned airline subsidiaries of US Airways Group, including US Airways,
Allegheny Airlines, Piedmont Airlines and PSA Airlines as well as
operating and financial results from capacity purchase agreements with
Mesa Airlines, Chautauqua Airlines, Trans States Airlines and Midway
Airlines.
(2) Statistics for the nine months ended September 30, 2003 include amounts
from both the Successor Company and the Predecessor Company.
(3) Pursuant to SEC Regulation G, US Airways, Inc. (the Company) is providing
disclosure of the reconciliation of reported non-GAAP and segment financial
measures to their comparable financial measures reported on a GAAP basis. The
non-GAAP and segment financial measures provide management the ability to
measure and monitor US Airways, Inc.'s financial performance at the mainline
level both with and without unusual items and the cost of aviation fuel as
both the cost and availability of aviation fuel are subject to many economic
and political factors beyond the Company's control, unusual items are not
indicative of the Company's ongoing operating performance and mainline
measures are more comparable to financial measures reported to the Department
of Transportation by other major network airlines.
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- -----------------------
2004 2003 2004 2003
------------ --------- ------------ ----------
(in millions, except per seat mile amounts)
Passenger transportation revenue reconciliation:
GAAP passenger transportation
revenue $ 1,601 $ 1,593 $ 4,875 $ 4,548
Less: US Airways Express
and MidAtlantic
transportation revenue (350) (329) (1,041) (882)
-------- -------- ------ -------
Mainline passenger
transportation revenue $ 1,251 $ 1,264 $ 3,834 $ 3,666
Operating revenue reconciliation:
GAAP operating revenues $ 1,788 $ 1,749 $ 5,419 $ 5,020
Less: US Airways Express and
MidAtlantic operating
revenues (352) (331) (1,046) (886)
--------- -------- ------- --------
Mainline operating revenues $ 1,436 $ 1,418 $ 4,373 $ 4,134
Operating expenses reconciliation:
GAAP operating expenses $ 1,946 $ 1,786 $ 5,639 $ 5,190
Less: US Airways Express
capacity purchases (327) (311) (981) (839)
Less: MidAtlantic Airways
operating expenses (30) -- (45) --
--------- -------- ------- --------
Mainline operating expenses $ 1,589 1,475 $ 4,613 $ 4,351
Cost per available seat mile reconciliations: (a)
Cost per available seat mile excluding
US Airways Express capacity purchases
("Mainline CASM") 11.59 c 10.98 c 11.47 c 11.25 c
Unusual items (b) -- -- -- 0.46
------- ------ ------ ------
Mainline CASM excluding unusual
items 11.59 c 10.98 c 11.47 c 11.71 c
Aviation fuel - mainline (1.85) (1.46) (1.76) (1.50)
------- ------ ------ ------
Mainline CASM excluding aviation
fuel and unusual items 9.74 c 9.52 c 9.71 c 10.21 c
c - cents
(a) Amounts may not recalculate due to rounding.
(b) Unusual items include $212 million of government compensation, $35 million
charge related to an intention not to take delivery of certain aircraft
scheduled for future delivery and a $1 million reduction to severance pay
accruals for the nine months ended September 30, 2003.