US Airways Reports Highest Annual Profit In Company History

Wed Jan 23, 2013 8:00am EST

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Net Income excluding special items up 384 percent versus 2011


TEMPE, Ariz.,  Jan. 23, 2013  /PRNewswire/ -- 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 
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
(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  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                                           pts      84.1            83.7        0.4     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 mainline and express CASM excluding special items, fuel and profit sharing to evaluate the Company's operating performance. 


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


Dan Cravens, 480-693-5729

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