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