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US Airways Reports Highest Annual Profit In Company History

US Airways Reports Highest Annual Profit In Company History

Net Income excluding special items up 384 percent versus 2011

Highlights of US Airways Group, Inc.‘s (the Company) fourth quarter and 2012 results:

- Full year 2012 net profit excluding net special items was a record $537 million, or $2.79 per diluted share. This is a 384 percent improvement over the Company’s 2011 net profit of $111 million excluding net special items, or $0.68 per diluted share.

- Fourth quarter net profit excluding net special items was $46 million, or $0.26 per diluted share. This compares to a fourth quarter 2011 net profit excluding net special items of $21 million, or $0.13 per diluted share.

- The airline’s employees earned approximately $61 million in profit sharing for the full year results, up 408 percent versus 2011, and an additional $19 million in operational incentive payouts through November.

TEMPE, Ariz., Jan. 23, 2013 - US Airways Group, Inc. (NYSE: LCC) today reported its fourth quarter and 2012 financial results. For full year 2012, the Company reported a record net profit of $537 million, or $2.79 per diluted share, which excludes net special items totaling a credit of $100 million. This compares to a full year 2011 net profit of $111 million excluding net special items, or $0.68 per diluted share. On a GAAP basis, the Company reported a record net profit of $637 million, or $3.28 per diluted share for 2012, up 797 percent over the 2011 net profit of $71 million, or $0.44 per diluted share.

(Logo: http://photos.prnewswire.com/prnh/20120103/LA28814LOGO)

For the fourth quarter 2012, net profit excluding net special items was $46 million, or $0.26 per diluted share. Net profit excluding net special items for the fourth quarter 2011 was $21 million, or $0.13 per diluted share. On a GAAP basis, the Company reported a record net profit of $37 million for its fourth quarter 2012, or $0.22 per diluted share, compared to a net profit of $18 million, or $0.11 per diluted share, for the same period in 2011. As previously disclosed, the Company’s fourth quarter and full year results were negatively impacted by approximately $35 million due to Hurricane Sandy. See the accompanying notes in the Financial Tables section of this press release for a reconciliation of GAAP financial information to non-GAAP financial information.

US Airways Group, Inc. Chairman and CEO Doug Parker stated, “We couldn’t be happier with the performance of US Airways in 2012. Our 32,000 hard-working team members did a phenomenal job of running a safe and reliable airline for our customers and these record financial results are the result of their efforts.

“Our team members produced the best operating reliability performance in our history -which is no easy feat since US Airways led all network carriers in on-time performance from 2008-2011. But in 2012, we did even better with record highs in on-time performance, completion factor and baggage handling. This helped lead to our best ever annual results in total revenue, total traffic, mainline load factor, mainline yield and mainline revenue.

“These outstanding operating and revenue results combined with strong cost discipline led to record net income excluding special items of $537 million, up nearly 400 percent versus last year. Our shareholders were rewarded for their confidence in our team as US Airways stock increased 166 percent in 2012, the largest increase of any company in the Fortune 500.

“We enter 2013 with great momentum and enthusiasm and are well positioned for whatever may lie ahead,” concluded Parker.

Revenue and Cost Comparisons

A strong demand environment and record passenger yields led to improved revenue performance. Total revenues in the fourth quarter were a record $3.3 billion, up 3.9 percent versus the fourth quarter 2011 on a 1.4 percent increase in total available seat miles (ASMs). Total revenue per ASM was a record 15.58 cents, up 2.5 percent versus the same period last year driven by a two point increase in passenger load factor.

For the full year 2012, total revenues were a record $13.8 billion, up 5.9 percent versus 2011. Total revenue per ASM increased 3.9 percent to a record 15.64 cents, driven by a 3.5 percent increase in passenger yield and a record load factor of 82.9 percent, up from 82.3 percent in 2011.

 

Total operating expenses in the fourth quarter were $3.2 billion, up 3.5 percent over the same period last year. Mainline cost per available seat mile (CASM) was 13.55 cents, up 2.8 percent on a 0.7 percent increase in mainline ASMs. Excluding special items, fuel and profit sharing, mainline CASM was 8.73 cents, up 2.9 percent versus the same period last year. Express CASM excluding special items and fuel was 14.54 cents, down 2.7 percent on a 4.8 percent increase in ASMs.

For the full year 2012, total operating expenses were $13.0 billion, up 2.7 percent versus 2011. Excluding special items, fuel and profit sharing, mainline CASM increased 0.5 percent to 8.39 cents. Express CASM excluding special items and fuel decreased 1.5 percent to 14.49 cents.

Liquidity

 

As of December 31, 2012, the Company had $2.71 billion in total cash and investments, of which $336 million was restricted, up from $2.31 billion, of which $365 million was restricted on December 31, 2011.

 

Special Items

The Company recognized approximately $9 million of net special items in the fourth quarter, which are primarily related to corporate transaction and auction rate securities arbitration costs.

 

Notable Accomplishments

 

Marketing and Customer Enhancements


  — Announced the return of seasonal service between the Company’s
      international gateway at Philadelphia International Airport and Shannon,
      Ireland.
  — Announced new service from Charlotte, N.C. to London’s Heathrow Airport
      and Sao Paulo, Brazil.
  — Launched a new codeshare agreement with Avianca, expanding access for
      customers throughout Colombia. The Company also expanded its current
      codeshare with TACA International Airlines and launched a new codeshare
      with South African Airways.
  — Completed the installation of Gogo┬« inflight Wi-Fi internet service on
      Embraer E170 and E175 aircraft. Wi-Fi is now on more than 80 percent of
      US Airways’ Embraer and Airbus narrow-body aircraft.
Operational Achievements


  — Achieved new monthly baggage performance records for 12 consecutive
      months since Dec. 2011.
  — Wholly-owned subsidiary PSA Airlines became the first regional airline
      to achieve the highest level of the Federal Aviation Administration’s
      Safety Management System.
Financial Accomplishments


  — Completed an enhanced equipment trust certificate offering in the
      aggregate face amount of $546 million. The proceeds will primarily be
      used to finance the purchase of eleven Airbus aircraft scheduled to be
      delivered from May 2013 to October 2013.
  — Recognized by Institutional Investor Magazine as one of its most honored
      companies in 2013, including the top investor relations department in
      the airline industry.


Corporate Citizenship


  — Raised a record $1.46 million for United Way with annual “Hope Takes
      Flight” campaign.
  — Launched BE PINK partnership with American Cancer Society’s Making
      Strides Against Breast Cancer (MSABC) and raised $200,000 through
      uniform and merchandise sales and MSABC walks.
  — Awarded $170,000 in US Airways Education Foundation Grants to
      non-profits in Washington, Charlotte, Philadelphia and Phoenix.
  — Honored 85 top flight attendants for exceptional customer service and
      recognized the contributions of three with more than 50 years of service
      at the annual “InFlight Service Champions” dinner in Phoenix.
Analyst Conference Call/Webcast Details

 

US Airways will conduct a live audio webcast of its earnings call today at 11:30 a.m. ET, which will be available to the public on a listen-only basis at http://www.usairways.com under the Company Info >>Investor Relations tab. An archive of the call/webcast will be available in the Investor Relations portion of the website through Feb. 23.

2013 Investor Guidance

The Company will provide its investor relations guidance on its website (http://www.usairways.com) immediately following its 11:30 a.m. ET conference call. The Company typically provides guidance related to cost per available seat mile (CASM) excluding special charges, fuel and profit sharing, fuel prices, other revenues and estimated interest expense/income on its investor relations update page on its web site. This update will also include the airline’s capacity, fleet plan and estimated capital spending for 2013.

About US Airways

 

US Airways, along with US Airways Shuttle and US Airways Express, operates more than 3,000 flights per day and serves 198 communities in the U.S., Canada, Mexico, Europe, the Middle East, the Caribbean, Central and South America. The airline employs more than 32,000 aviation professionals worldwide, operates the world’s largest fleet of Airbus aircraft and is a member of the Star Alliance network, which offers its customers more than 21,900 daily flights to 1,329 airports in 194 countries. Together with its US Airways Express partners, the airline serves approximately 80 million passengers each year and operates hubs in Charlotte, N.C., Philadelphia and Phoenix, and a focus city in Washington, D.C. at Ronald Reagan Washington National Airport. Aviation Week and Overhaul & Maintenance magazine presented US Airways with the 2012 Aviation Maintenance, Repair and Overhaul (MRO) of the Year Award for demonstrating outstanding achievement and innovation in the area of technical operations. Military Times Edge magazine named US Airways as a Best of Vets employer in 2011 and 2012. US Airways was, for the third year in a row, the only airline included as one of the 50 best companies to work for in the U.S. by LATINA Style magazine’s 50 Report. The airline also earned a 100 percent rating on the Human Rights Campaign Corporate Equality index for six consecutive years. The Corporate Equality index is a leading indicator of companies’ attitudes and policies toward lesbian, gay, bisexual and transgender employees and customers. For more company information visit usairways.com, follow on Twitter @USAirways or at Facebook.com/USAirways. (LCCF)

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,” “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; the impact of the price and availability of fuel and significant disruptions in the supply of aircraft fuel; competitive practices in the industry, including the impact of industry consolidation; increased costs of financing, a reduction in the availability of financing and fluctuations in interest rates; the Company’s high level of fixed obligations and ability to fund general corporate requirements, obtain additional financing and respond to competitive developments; any failure to comply with the liquidity covenants contained in financing arrangements; provisions in credit card processing and other commercial agreements that may affect the Company’s liquidity; the impact of union disputes, employee strikes and other labor-related disruptions; the inability to maintain labor costs at competitive levels; interruptions or disruptions in service at one or more of the Company’s hub airports or focus city; regulatory changes affecting the allocation of slots; the Company’s reliance on third-party regional operators or third-party service providers; the Company’s 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 regulation; the impact of changes to the Company’s business model the loss of key personnel or inability to attract and retain qualified personnel; the impact of conflicts overseas or terrorist attacks, and the impact of ongoing security concerns; the Company’s ability to operate and grow its route network; the impact of environmental regulation; the Company’s reliance on technology and automated systems and the impact of any failure or disruption of, or delay in, these technologies or systems; costs of ongoing data security compliance requirements and the impact of any significant data security breach; the impact of any accident involving the Company’s aircraft or the aircraft of its regional operators; delays in scheduled aircraft deliveries or other loss of anticipated fleet capacity; the Company’s dependence on a limited number of suppliers for aircraft, aircraft engines and parts; the Company’s ability to operate profitably out of Philadelphia International Airport; 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; the Company’s ability to use NOLs and certain other tax attributes; and other risks and uncertainties listed from time to time in the Company’s 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 September 30, 2012 and in the Company’s other filings with the SEC, which are available at http://www.usairways.com.

 


                                                      US Airways Group, Inc.
                                              Condensed Consolidated Statements of Operations
                                            (In millions, except share and per share amounts)
                                                          (Unaudited)

                                          3 Months Ended                 Percent               12 Months Ended       Percent
                                          December 31,                                      December 31,
                                            2012               2011               Change           2012     2011       Change
                                          ——              ——            ———        ——    ——      ———

  Operating revenues:
      Mainline passenger                         $2,098               $2,054                     2.2     $8,979     $8,501             5.6
      Express passenger                           803                 745                     7.7     3,326     3,061             8.7
      Cargo                                     41                 43                   (3.9)      155       170             (8.4)
      Other                                   336                 313                     7.3     1,371     1,323             3.6
                                            —-                —-                          ——-    ——-
      Total operating
      revenues                               3,278               3,155                     3.9     13,831     13,055             5.9

  Operating expenses:
      Aircraft fuel and
      related taxes                             830                 813                     2.1     3,489     3,400             2.6
      Salaries and
      related costs                             600                 546                     9.9     2,488     2,272             9.5
      Express expenses:
        Fuel                                 268                 254                     5.7     1,098     1,056             3.9
        Other                                 508                 498                     1.9     2,064     2,071             (0.4)
      Aircraft rent                               159                 159                     0.1       643       646             (0.5)
      Aircraft
      maintenance                               166                 171                   (3.3)      672       679             (1.0)
      Other rent and
      landing fees                               137                 137                     0.1       556       555             0.3
      Selling expenses                             107                 110                   (2.3)      466       454             2.8
      Special items, net                             9                 2                     nm       34       24             41.4
      Depreciation and
      amortization                               63                 60                     4.3       245       237             3.1
      Other                                   306                 297                     3.1     1,220     1,235             (1.2)
                                            —-                —-                          ——-    ——-
      Total operating
      expenses                               3,153               3,047                     3.5     12,975     12,629             2.7
                                          ——-              ——-                          ———  ———

      Operating income                             125                 108                   15.9       856       426             nm

  Nonoperating income (expense):
      Interest income                               1                 -                    4.7         2       4           (62.3)
      Interest expense,
      net                                     (87)                (86)                  (0.1)      (343)    (327)            4.8
      Other, net                                 (3)                (6)                  (44.8)      122       (13)            nm
                                            —-                —-                            —-      —-
      Total nonoperating
      expense, net                               (89)                (92)                  (3.1)      (219)    (336)          (34.7)
                                            —-                —-                            ——    ——

  Income before
    income taxes                                 36                 16                     nm       637       90             nm

  Income tax
    provision
    (benefit)                                    (1)                (2)                  (32.9)        -      19             nm
                                            —-                —-                            —-      —-

      Net income                                 $37                 $18                     nm       $637       $71             nm
                                            ===                ===                            ====      ===


  Earnings per common share
      Basic                                   $0.23               $0.11                           $3.92     $0.44
                                          =====              =====                            =====    =====
      Diluted                                 $0.22               $0.11                           $3.28     $0.44
                                          =====              =====                            =====    =====

  Shares used for computation (in thousands):
      Basic                                 162,467             162,115                           162,331   162,028
                                          =======              =======                          =======    =======
      Diluted                               205,115             163,222                           203,978   163,743
                                          =======              =======                          =======    =======

  Note: Percent change may not recalculate due to rounding.

 

                                              US Airways Group, Inc.
                                              Operating Statistics


                                  3 Months Ended                                         12 Months Ended
                                    December 31,                                          December 31,
                                            2012                   2011       Change                 2012   2011 Change
                                          ——                  ——      ———                —— —————

  Mainline
  -
  Revenue passenger miles
    (millions)                                14,871                 14,478             2.7%            62,435 60,779       2.7%
  Available seat miles (ASM)
    (millions)                                17,546                 17,419             0.7             74,211 72,603       2.2%
                                                                                    %
  Passenger load factor
    (percent)                                  84.8                   83.1             1.7             84.1   83.7       0.4   pts
                                                                                            pts
  Yield (cents)                                14.11                   14.19             (0.5)%            14.38 13.99       2.8%
  Passenger revenue per ASM
    (cents)                                  11.96                   11.79             1.4%            12.10 11.71       3.3%

  Passenger enplanements
    (thousands)                                13,350                 13,136             1.6%            54,277 52,959       2.5%
  Departures (thousands)                          108                   111             (3.0)%              449   452     (0.5)%
  Aircraft at end of period                         340                   340               -  %            340   340         -  %

  Block hours (thousands)                          287                   292             (1.8)%            1,209 1,217     (0.7)%
  Average stage length
    (miles)                                    986                   966             2.1%            1,004   991       1.4%
  Average passenger journey
    (miles)                                  1,640                   1,631             0.5%            1,704 1,691       0.8%
  Fuel consumption (gallons
    in millions)                                260                   262             (0.7)%            1,102 1,095       0.6%
  Average aircraft fuel price
    including related taxes
    (dollars per gallon)                          3.19                   3.10             2.9%            3.17   3.11       2.0%
  Full-time equivalent
    employees at end of period                     31,236                 31,548             (1.0)%            31,236 31,548     (1.0)%

  Operating cost per ASM
    (cents)                                  13.55                   13.18             2.8%            13.22 13.09       1.1%
  Operating cost per ASM
    excluding special items
    (cents)                                  13.50                   13.16             2.5%            13.18 13.05       1.0%
  Operating cost per ASM
    excluding special items
    and fuel (cents)                              8.77                   8.50             3.1%            8.48   8.37       1.3%
  Operating cost per ASM
    excluding special items,
    fuel and profit
  sharing (cents)                              8.73                   8.49             2.9%            8.39   8.35       0.5%

  Express*
 
  Revenue passenger miles
    (millions)                                2,770                   2,518             10.0%            10,883 10,542       3.2%
  Available seat miles
    (millions)                                3,492                   3,331             4.8%            14,214 14,070       1.0%
  Passenger load factor
    (percent)                                  79.3                   75.6             3.7         pts   76.6   74.9       1.7   pts
  Yield (cents)                                28.98                   29.60             (2.1)%            30.56 29.03       5.3%
  Passenger revenue per ASM
    (cents)                                  22.99                   22.37             2.8%            23.40 21.75       7.6%

  Passenger enplanements
    (thousands)                                7,103                   6,721             5.7%            28,269 27,613       2.4%
  Aircraft at end of period                         282                   283             (0.4)%              282   283     (0.4)%
  Fuel consumption (gallons
    in millions)                                  84                     81             3.1%              345   338       1.9%
  Average aircraft fuel price
    including related taxes
    (dollars per gallon)                          3.19                   3.11             2.5%            3.19   3.12       2.0%

  Operating cost per ASM
    (cents)                                  22.22                   22.57             (1.6)%            22.24 22.23       0.1%
  Operating cost per ASM
    excluding special items
    (cents)                                  22.22                   22.56             (1.5)%            22.22 22.22         -  %
  Operating cost per ASM
    excluding special items
    and fuel (cents)                            14.54                   14.94             (2.7)%            14.49 14.71     (1.5)%

  Total Mainline & Express
  —-
  Revenue passenger miles
    (millions)                                17,641                 16,996             3.8%            73,318 71,321       2.8%
  Available seat miles
    (millions)                                21,038                 20,750             1.4%            88,425 86,673       2.0%
  Passenger load factor
    (percent)                                  83.9                   81.9             2.0         pts   82.9   82.3       0.6   pts
  Yield (cents)                                16.45                   16.47             (0.1)%            16.78 16.21       3.5%
  Passenger revenue per ASM
    (cents)                                  13.79                   13.49             2.2%            13.92 13.34       4.3%
  Total revenue per ASM
    (cents)                                  15.58                   15.20             2.5%            15.64 15.06       3.9%

  Passenger enplanements
    (thousands)                                20,453                 19,857             3.0%            82,546 80,572       2.5%
  Aircraft at end of period                         622                   623             (0.2)%              622   623     (0.2)%
  Fuel consumption (gallons
    in millions)                                344                   343             0.2%            1,447 1,433       0.9%
  Average aircraft fuel price
    including related taxes
    (dollars per gallon)                          3.19                   3.10             2.8%            3.17   3.11       2.0%

  Operating cost per ASM
    (cents)                                  14.99                   14.68             2.1%            14.67 14.57       0.7%
  Operating cost per ASM
    excluding special items
    (cents)                                  14.94                   14.67             1.9%            14.63 14.54       0.6%
  Operating cost per ASM
    excluding special items
    and fuel (cents)                              9.72                   9.53             2.0%            9.44   9.40       0.5%
  Operating cost per ASM
    excluding special items,
    fuel and profit
  sharing (cents)                              9.69                   9.52             1.8%            9.37   9.39     (0.1)%


  * Express includes US Airways Group’s wholly owned regional airline subsidiaries, Piedmont Airlines and PSA
    Airlines, as well as operating and financial results from capacity purchase agreements with Republic
    Airlines, Mesa Airlines, Air Wisconsin Airlines, Chautauqua Airlines and SkyWest Airlines

  Note: Amounts may not recalculate due to rounding.

 

  Reconciliation of GAAP
    Financial Information to
    Non-GAAP Financial
    Information


  US Airways Group, Inc. (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 and express CASM excluding fuel 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. Management uses

 

                                      3 Months Ended             12 Months Ended
                                      December 31,              December 31,
                                        2012           2011           2012     2011
                                      ——          ——          ——    ——
  Reconciliation of Net Income               (In millions, except         (In millions, except
    Excluding Special Items                   share and per share         share and per share
                                        amounts)                amounts)
 

  Net income as reported                       $37           $18           $637       $71
  Special items:
    Special items, net (1)                      9             2             34       24
    Express operating special
      items, net (2)                          -            1             3       2
    Nonoperating special items, net
      (3)                                  -            -            (137)      (7)
    Non-cash tax provision (4)                    -            -              -      21
                                        —-          —-            —-      —-
  Net income as adjusted for
    special items                             $46           $21           $537     $111
                                        ===            ===            ====      ====


                                    3 Months Ended           12 Months Ended
                                      December 31,            December 31,
  Reconciliation of Basic and
    Diluted Earnings Per Share As                 2012           2011           2012     2011
                                      ——          ——          ——    ——
  Adjusted for Special Items
  ——-

  Net income as adjusted for
    special items                             $46           $21           $537     $111

  Shares used for computation (in
    thousands):
    Basic                             162,467         162,115         162,331   162,028
                                      =======        =======          =======    =======
    Diluted                             205,115         163,222         203,978   163,743
                                      =======        =======          =======    =======

  Earnings per share as adjusted
    for special items:
    Basic                               $0.28           $0.13           $3.31     $0.69
                                      =====          =====          =====    =====
    Diluted (5)                          $0.26           $0.13           $2.79     $0.68
                                      =====          =====          =====    =====


                                    3 Months Ended           12 Months Ended
                                      December 31,            December 31,
  Reconciliation of Operating
    Income Excluding Special Items                 2012           2011           2012     2011
  —-                ——          ——          ——    ——

  Operating income as reported                   $125           $108           $856     $426

  Special items:
    Special items, net (1)                      9             2             34       24
    Express operating special
      items, net (2)                          -            1             3       2
                                        —-          —-            —-      —-
  Operating income as adjusted
    for special items                         $134           $111           $893     $452
                                        ====          ====            ====      ====


                                    3 Months Ended           12 Months Ended
                                      December 31,            December 31,
  Reconciliation of Operating
    Cost per ASM Excluding Special                 2012           2011           2012     2011
                                      ——          ——          ——    ——
  Items, Fuel and Profit Sharing
    -Mainline only
  —

  Total operating expenses                   $3,153         $3,047         $12,975   $12,629
  Less express expenses:
    Fuel                                 (268)          (254)          (1,098)    (1,056)
    Other                               (508)          (498)          (2,064)    (2,071)
                                      ——          ——        ———  ———
  Total mainline operating
    expenses                               2,377           2,295           9,813     9,502

    Special items, net (1)                      (9)            (2)            (34)      (24)
                                        —-          —-            —-      —-
  Mainline operating expenses,
    excluding special items                     2,368           2,293           9,779     9,478

    Aircraft fuel and related taxes               (830)          (813)          (3,489)    (3,400)
                                      ——          ——        ———  ———
  Mainline operating expenses,
    excluding special items and
    fuel                                 1,538           1,480           6,290     6,078

  Profit sharing                             (6)            (2)            (61)      (12)
                                        —-          —-            —-      —-
  Mainline operating expenses,
    excluding special items, fuel
    and
  profit sharing                           $1,532         $1,478           $6,229     $6,066
                                      ======          ======          ======    ======

    (In cents)
  Mainline operating expenses per
    ASM                                 $13.55         $13.18           $13.22     $13.09

    Special items, net per ASM (1)              (0.05)          (0.01)          (0.05)    (0.03)
                                      ——-          ——-          ——-    ——-
  Mainline operating expenses per
    ASM, excluding special items                 13.50           13.16           13.18     13.05

    Aircraft fuel and related taxes
      per ASM                             (4.73)          (4.66)          (4.70)    (4.68)
                                      ——-          ——-          ——-    ——-
  Mainline operating expenses per
    ASM, excluding special items
  and fuel                               8.77           8.50           8.48     8.37

  Profit sharing per ASM                     (0.04)          (0.01)          (0.08)    (0.02)
                                      ——-          ——-          ——-    ——-
  Mainline operating expenses per
    ASM, excluding special items,
  fuel and profit sharing                     $8.73           $8.49           $8.39     $8.35
                                      =====          =====          =====    =====

  Note: Amounts may not recalculate due to rounding.

                                    3 Months Ended           12 Months Ended
                                      December 31,            December 31,
  Reconciliation of Operating
    Cost per ASM Excluding Special                 2012           2011           2012     2011
                                      ——          ——          ——    ——
  Items and Fuel - Express only
  -

  Total express operating
    expenses                               $776           $752           $3,162     $3,127

    Express operating special
      items, net (2)                          -            (1)            (3)      (2)
                                        —-          —-            —-      —-
  Express operating expenses,
    excluding special items                     776           751           3,159     3,125

    Aircraft fuel and related taxes               (268)          (254)          (1,098)    (1,056)
                                      ——          ——        ———  ———
  Express operating expenses,
    excluding special items and
    fuel                                 $508           $497           $2,061     $2,069
                                        ====          ====          ======    ======

    (In cents)
  Express operating expenses per
    ASM                                 $22.22         $22.57           $22.24     $22.23

    Express operating special
      items, net per ASM (2)                      -          (0.01)          (0.02)    (0.01)
                                        —-          ——-          ——-    ——-
  Express operating expenses per
    ASM, excluding special items                 22.22           22.56           22.22     22.22

    Aircraft fuel and related taxes
      per ASM                             (7.68)          (7.61)          (7.72)    (7.51)
                                      ——-          ——-          ——-    ——-
  Express operating expenses per
    ASM, excluding special items
    and fuel                             $14.54         $14.94           $14.49     $14.71
                                      ======          ======          ======    ======

  Note: Amounts may not recalculate due to rounding.

                                    3 Months Ended           12 Months Ended
                                      December 31,            December 31,
  Reconciliation of Operating
    Cost per ASM Excluding Special                 2012           2011           2012     2011
                                      ——          ——          ——    ——
  Items, Fuel and Profit Sharing
    -Total Mainline and Express
  —

  Total operating expenses                   $3,153         $3,047         $12,975   $12,629

  Special items:
    Special items, net (1)                      (9)            (2)            (34)      (24)
    Express operating special
      items, net (2)                          -            (1)            (3)      (2)
                                        —-          —-            —-      —-
  Total operating expenses,
    excluding special items                     3,144           3,044           12,938     12,603

  Fuel:
    Aircraft fuel and related taxes
      -mainline                             (830)          (813)          (3,489)    (3,400)
    Aircraft fuel and related taxes
      -express                             (268)          (254)          (1,098)    (1,056)
                                      ——          ——        ———  ———
  Total operating expenses,
    excluding special items and
    fuel                                 2,046           1,977           8,351     8,147

  Profit sharing                             (6)            (2)            (61)      (12)
                                        —-          —-            —-      —-
  Total operating expenses,
    excluding special items, fuel
  and profit sharing                       $2,040         $1,975           $8,290     $8,135
                                      ======          ======          ======    ======

    (In cents)
  Total operating expenses per
    ASM                                 $14.99         $14.68           $14.67     $14.57

  Special items per ASM:
    Special items, net (1)                    (0.04)          (0.01)          (0.04)    (0.03)
    Express operating special
      items, net (2)                          -            -              -        -
                                        —-          —-            —-      —-
  Total operating expenses per
    ASM, excluding special items                 14.94           14.67           14.63     14.54

  Fuel per ASM:
    Aircraft fuel and related taxes
      -mainline                           (3.95)          (3.92)          (3.95)    (3.92)
    Aircraft fuel and related taxes
      -express                             (1.27)          (1.22)          (1.24)    (1.22)
                                      ——-          ——-          ——-    ——-
  Total operating expenses per
    ASM, excluding special items
  and fuel                               9.72           9.53           9.44     9.40

  Profit sharing per ASM                     (0.03)          (0.01)          (0.07)    (0.01)
                                      ——-          ——-          ——-    ——-
  Total operating expenses per
    ASM, excluding special items,
  fuel and profit sharing                     $9.69           $9.52           $9.37     $9.39
                                      =====          =====          =====    =====

  Note: Amounts may not recalculate due to rounding.

 

          FOOTNOTES:
          —-

  1)        Special items, net in the 2012 and 2011
            fourth quarter and twelve month
            periods consisted of charges primarily
            related to corporate transaction and
            auction rate securities arbitration
            costs.

  2)        The 2012 twelve month period consisted
            of $3 million in net special charges
            related to the ratification of a new
            Piedmont fleet and passenger services
            contract.

  3)        The 2012 twelve month period consisted
            primarily of a $142 million gain
            related to the slot transaction with
            Delta Air Lines, Inc., offset in part
            by $3 million in debt prepayment
            penalties and non-cash write offs of
            certain debt issuance costs related to
            the refinancing of two Airbus
            aircraft.

            The 2011 twelve month period included
            $7 million of net special credits
            consisting of a $15 million credit in
            connection with an award received in
            an arbitration involving investments
            in auction rate securities, offset in
            part by $6 million in debt prepayment
            penalties and non-cash write offs of
            certain debt issuance costs related to
            the refinancing of five Airbus
            aircraft as well as $2 million of
            losses related to investments in
            auction rate securities.

  4)        The 2011 twelve month period consisted
            of a special non-cash tax charge of
            $21 million as a result of the sale of
            our final remaining investment in
            auction rate securities in July 2011.
            This charge recognized in the
            statement of operations the tax
            provision that was recorded in other
            comprehensive income, a subset of
            stockholders’ equity, in the fourth
            quarter of 2009.

  5)        The 2012 fourth quarter diluted EPS
            excludes $8 million of interest, net
            of profit sharing, related to the
            Company’s 7.25% convertible notes. The
            2012 twelve month period diluted EPS
            excludes $31 million of interest, net
            of profit sharing, related to the
            Company’s 7.25% and 7% convertible
            notes.

 

                          US Airways Group, Inc.
                      Condensed Consolidated Balance Sheets
                              (In millions)
                              (Unaudited)


                      December 31, 2012             December 31, 2011
                      —-            —-
  Assets

  Current assets
    Cash, cash equivalents
      and investments in
      marketable securities                   $2,376                 $1,947
    Accounts receivable,
      net                                 298                   327
    Materials and
      supplies, net                           300                   235
    Prepaid expenses and
      other                               608                   540
                                        —-                  —-
      Total current assets                   3,582                 3,049

  Property and equipment
    Flight equipment                       5,188                 4,591
    Ground property and
      equipment                           1,005                   907
    Less accumulated
      depreciation and
      amortization                         (1,733)                (1,501)
                                      ———                ———
                                      4,460                 3,997
    Equipment purchase
      deposits                             244                   153
                                        —-                  —-
      Total property and
        equipment                         4,704                 4,150

  Other assets
    Other intangibles, net                     539                   543
    Restricted cash                         336                   365
    Other assets                           235                   228
                                        —-                  —-
      Total other assets                     1,110                 1,136
                                      ——-                ——-

      Total assets                       $9,396                 $8,335
                                      ======                ======

  Liabilities and
    Stockholders’ Equity

  Current liabilities
    Current maturities of
      debt and capital
      leases                               $417                   $436
    Accounts payable                         366                   386
    Air traffic liability                     1,054                   910
    Accrued compensation
      and vacation                           258                   176
    Accrued taxes                           181                   163
    Other accrued expenses                   1,027                 1,089
                                      ——-                ——-
      Total current
        liabilities                         3,303                 3,160

  Noncurrent liabilities
    and deferred credits
    Long-term debt and
      capital leases, net
      of current maturities                   4,376                 4,130
    Deferred gains and
      credits, net                           290                   307
    Employee benefit
      liabilities and other                     637                   588
                                        —-                  —-
      Total noncurrent
        liabilities and
        deferred credits                     5,303                 5,025

  Stockholders’ equity
    Common stock                             2                     2
    Additional paid-in
      capital                             2,134                 2,122
    Accumulated other
      comprehensive income
      (loss)                                (7)                    2
    Accumulated deficit                     (1,339)                (1,976)
                                      ———                ———
      Total stockholders’
        equity                             790                   150
                                        —-                  —-

      Total liabilities and
        stockholders’ equity                 $9,396                 $8,335
                                      ======                ======


SOURCE US Airways Group, Inc.

Photo:http://photos.prnewswire.com/prnh/20120103/LA28814LOGO
http://photoarchive.ap.org/
US Airways Group, Inc.

CONTACT: Dan Cravens, 480-693-5729

Web Site: http://www.usairways.com


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Posted on Jan 23, 2013 - 02:13 PM • Print

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