FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report
(Date of earliest event reported)
June 4, 1998
US Airways Group, Inc.
(Commission file number: 1-8444)
and
US Airways, Inc.
(Commission file number: 1-8442)
(Exact names of registrants as specified in their charters)
Delaware US Airways Group, Inc. 54-1194634
(State of incorporation US Airways, Inc. 53-0218143
of both registrants) (I.R.S. Employer Identification Nos.)
US Airways Group, Inc.
2345 Crystal Drive, Arlington, VA 22227
(Address of principal executive offices)
(703) 872-5306
(Registrant's telephone number, including area code)
US Airways, Inc.
2345 Crystal Drive, Arlington, VA 22227
(Address of principal executive offices)
(703) 872-7000
(Registrant's telephone number, including area code)
Item 5. Other Events
On June 4, Stephen M. Wolf, Chairman and Chief Executive
Officer of US Airways Group, Inc. (US Airways Group or the
"Company"), Rakesh Gangwal, President and Chief Executive Officer
of US Airways, Inc. (US Airways) and other US Airways
representatives met with analysts at a conference in New York to
discuss the financial performance of US Airways Group and US
Airways' operational performance and future prospects. At the
conference, US Airways disclosed that it expects capacity to be
down 4.1% and 2.1% for second quarter and full year 1998,
respectively. However, US Airways disclosed that capacity is
expected to increase 5% in each of 1999 and 2000. In response to
a question, the Company disclosed that it is considering
alternatives for US Airways Shuttle operations, including possibly
increasing frequencies.
After the conference, US Airways issued a news release
discussing its growth prospects for the remainder of 1998, 1999,
and 2000 (see exhibit 99 to this report).
Certain of the information discussed at the conference,
including certain of the information set forth in this report and
its exhibit, should be considered "forward-looking information"
which is subject to a number of risks and uncertainties. The
preparation of forward-looking information requires the use of
estimates of future revenues, expenses, activity levels and
economic and market conditions, many of which are outside of the
Company's control. Among the specific factors that could cause
actual results to differ materially from those set forth in the
forward-looking information are the following: economic
conditions, labor costs, aviation fuel costs, competitive
pressures on pricing particularly from lower-cost competitors,
weather conditions, government legislation, consumer perceptions
of the Company's product, demand for air transportation in the
markets in which the Company operates and the risks listed from
time to time in the Company's reports to the United States
Securities and Exchange Commission. Other factors and assumptions
not identified above were also involved in the preparation of this
forward-looking information, and the failure of such other factors
and assumptions to be realized may also cause actual results to
differ materially from those discussed. The Company assumes no
obligation to update such estimates to reflect actual results,
changes in assumptions or changes in other factors affecting such
estimates.
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Item 7. Financial Statements and Exhibits
(c) Exhibits
Designation Description
- ----------- -----------
99 News release dated June 4, 1998 of US Airways
discussing its future growth prospects.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrants have duly caused this report to be signed
on their behalf by the undersigned hereunto duly authorized.
US Airways Group, Inc. (REGISTRANT)
Date: June 4, 1998 By: /s/ James A. Hultquist
---------------------------------
James A. Hultquist
Controller (Chief Accounting Officer)
US Airways, Inc. (REGISTRANT)
Date: June 4, 1998 By: /s/ James. A. Hultquist
---------------------------------
James A. Hultquist
Controller (Chief Accounting Officer)
(this space intentionally left blank)
Exhibit 99
US AIRWAYS TARGETS BALANCED GROWTH
NEW YORK, June 4, 1998 - US Airways outlined a plan for
balanced growth today in a meeting with 200 airline analysts in
New York.
"We have chosen a path that balances the interests of our
customers, the communities we serve, our shareholders and our
employees - a path of prudent growth with a focus on building
shareholder value," Stephen M. Wolf, chairman and CEO of US
Airways Group, Inc. told the analysts.
"The continuing repair of our balance sheet, the development
of a competitive cost structure, our attractive marketing
relationship with American Airlines, our plan for growth
domestically and internationally, and our stock repurchase
program all underscore US Airways' course into a profitable 21st
Century," Wolf said.
Rakesh Gangwal, president and CEO of US Airways, Inc.,
introduced a series of presentations by top US Airways managers
that outlined changes under way at the airline in the key areas
of finance, operations, employee relations and sales.
"US Airways' presence in the eastern United States gives it
a powerful platform upon which to build and the plans being
implemented all across the company represent a practical,
achievable approach to the future," Gangwal said.
"Our marketing alliance with American Airlines, in
particular, is a symbol of our goal of becoming the airline of
choice. While preserving US Airways' uniqueness and its ability
to be an independent competitor in the marketplace, we offer our
frequent travelers the added benefits of American's system, just
as American's customers gain access to ours," Gangwal added.
The company also told the analysts that it expects capacity
for 1998 to be down by 2.1 percent but that in 1999 capacity is
expected to increase 5 percent as new aircraft enter the fleet
and MetroJet, US Airways' new low-fare service, makes its impact
with higher aircraft utilization. This will mark the first year
of growth for US Airways in five years.
- more -
US Airways Targets Balanced Growth
Page Two
June 4, 1998
The company said that it will receive new Airbus aircraft at
a faster rate than previously planned. In addition to the six
A319s US Airways will receive in the fall of 1998, the airline
now expects to receive 21 new Airbus A319s and five new A320s in
1999, an increase of six more A319s. In 2000, the airline will
receive 33 A319s and 10 A320s, an increase of 11 A319s from the
previous delivery schedule.
The company said that nine older aircraft will be retired
from the fleet in 1998, 24 in 1999 and 35 in 2000.
CERTAIN OF THE INFORMATION IN THIS RELEASE MAY BE CONSIDERED
"FORWARD-LOOKING INFORMATION." A NUMBER OF RISKS AND
UNCERTAINTIES EXIST WHICH COULD CAUSE THE ACTUAL RESULTS TO
DIFFER MATERIALLY FROM THE RESULTS PROJECTED IN SUCH FORWARD-
LOOKING INFORMATION. ADDITIONAL INFORMATION CONCERNING THE
FACTORS WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY
FROM THE FORWARD-LOOKING INFORMATION WILL BE CONTAINED IN A FORM
8-K TO BE FILED WITH THE SEC AS SOON AS PRACTICAL.
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NUMBER: 3439
