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)
July 14, 1999
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 July 14, 1999, US Airways, Inc. (US Airways)(a wholly-owned
subsidiary of US Airways Group, Inc.) provided certain forward-looking
information to the investment community related to its aircraft fleet and
selected operating and financial statistics (see Exhibit 99).
Certain of the information contained in the letter to the investment
community 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 US Airways' control. Specific factors that could cause actual
results to differ materially from those set forth in the forward-looking
information include: economic conditions, labor costs, aviation fuel costs,
competitive pressures on pricing--particularly from lower-cost competitors,
weather conditions, government legislation, consumer perceptions of US
Airways' products, demand for air transportation in the markets in which US
Airways operates and other risks and uncertainties listed from time to time
in US Airways' reports to the United States Securities and Exchange
Commission. Other factors and assumptions not identified above are also
involved in the preparation of 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. US Airways assumes no
obligation to update such estimates to reflect actual results, changes in
assumptions or changes in other factors affecting such estimates.
Also, US Airways Group, Inc. and US Airways, Inc. have been named as
defendants in three lawsuits recently filed in U.S. District Court for the
Eastern District of Michigan. Northwest Airlines is also named as a
defendant in each action, while Delta Air Lines and the Airlines Reporting
Corporation are named as defendants in two of the cases. The complaints
purport to be brought on behalf of a class of airline passengers who
originated or terminated their trips at the defendant carriers' respective
hubs. These passengers have made allegations that they have paid excessive
fares by reason of the respective airline's enforcement of ticketing rules
which prohibit the use of a connecting segment coupon which is part of a
through-fare ticket where the passenger does not fly or intend to fly the
entire ticketed itinerary. Plaintiffs allege monopolization and restraint
of trade in violation of the federal antitrust laws. They seek recovery of
unquantified treble-damages and an injunction prohibiting future
enforcement of the rules at issue. The Company believes the claims against
it to be without merit and intends to impose a vigorous defense. The cases
are respectively styled Keystone Business Machines, Inc., etc. v. US
Airways Group, Inc., et al. (E.D. Mich. Case No. 99-72474); BLT
Contracting, Inc., etc. v. US Airways Group, Inc., et al. (E.D. Mich. Case
No. 99-72998); and Volk, etc. v. Delta Airlines, Inc., et al. (E.D. Mich.
Case No. 99-72987).
Item 7. Financial Statements and Exhibits
(c) Exhibit
Designation Description
- ----------- -----------
99 Letter to investment community
dated July 14, 1999
(this space intentionally left blank)
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)
/s/ Anita P. Beier
Date: July 14, 1999 By: --------------------------------
Anita P. Beier
Vice President and Controller
Chief Accounting Officer
US Airways, Inc. (REGISTRANT)
/s/ Anita P. Beier
Date: July 14, 1999 By: --------------------------------
Anita P. Beier
Vice President and Controller
Chief Accounting Officer
(this space intentionally left blank)
Exhibit 99
July 14, 1999
Dear Analysts and Investors:
Attached please find the US Airways Investor Update for the month of
June and the Company's Fleet Plan Forecast for fiscal year 1999.
To update you on the Company's earnings outlook for the current
quarter, we expect US Airways' second quarter earnings per share to be in
line with the most recent First Call consensus estimate of $1.83 per share.
Given the recent revenue trends and our outlook for the balance of the
year, coupled with higher labor and fuel costs, the Company now expects
earnings per share for the second half to be below the current First Call
consensus estimate.
I hope that you find the update and forecast useful in your analysis
of the Company. As always, if you have any questions or comments on the
materials provided, please do not hesitate to call me at 703-872-5009.
Very truly yours,
Kimberly A. Holland
Director, Investor Relations
Enclosures
Certain of the information discussed above or enclosed herewith 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 8K to be filed with the Securities and Exchange
Commission.
<TABLE>
US AIRWAYS INVESTOR UPDATE
US Airways, Inc. (A Wholly-Owned Subsidiary of US Airways Group, Inc.)
July 1999
<CAPTION>
Year-over-Year Percentage Change
----------------------------------------------------------------------
Selected Operating and Financial Statistics June (Actual) July August September FY 1999
------------ ------ ------ ------ -------
<S> <C> <C> <C> <C> <C>
Available Seat Miles - Scheduled Service
-Domestic 5.6 % 3.6 % 6.9 % 6.2 % 3.9 %
-International 13.1 18.1 17.6 19.6 17.5
--- ---- ---- ---- ----
Total 6.4 % 5.1 % 8.0 % 7.6 % 5.3 %
Revenue Passenger Miles - Scheduled Service
-Domestic 0.1% (1.2)% 1.0 % (2.7) % (0.8) %
-International 14.3 20.4 16.8 13.6 18.2
---- ---- ---- ---- ----
Total 1.8% 1.3 % 2.8 % (0.6) % 1.3 %
Passenger Load Factor (3.4) points (2.9) points (3.8) points (5.5) points (2.8) points
Aviation Fuel
-Cost of Aviation Fuel Per Gallon
- Excluding Taxes 3.8 % 17.9 % 29.9 % 24.7 % 5.3 %
-Gallons of Aviation Fuel Consumed 6.2 4.7 6.0 4.6 3.8
Fleet Additions
-A319 2 3 2 2 22
-A320 2 1 2 2 11
-- -- -- -- --
Total 4 4 4 4 33
Fleet Retirements
-B737-200 0 0 0 0 1
-B727-200 - Shuttle* 0 1 0 0 8
-DC9-30 0 2 0 1 16
-- -- -- -- --
Total 0 3 0 1 25
* Shuttle,Inc. operations are currently performed by a wholly-owned subsidiary of US Airways Group, Inc.
Certain of the information discussed above 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 8K to be filed with the Securities and Exchange
Commission.
</TABLE>
<TABLE>
US AIRWAYS FLEET PLAN
US Airways, Inc. (A Wholly-Owned Subsidiary of US Airways Group, Inc.)
July 1999
<CAPTION>
Number of Aircraft: 1999 Year End
Fleet Plan
as of
Fleet Type 06/30/1999 Average Seats Average Age (yrs.) Owned Leased Total
- ---------- ---------- ------------- ------------------ ----- ------ -----
<S> <C> <C> <C> <C> <C> <C>
B767-200 12 203 10.5 8 4 12
B757-200 34 182 9.2 23 11 34
MD-80 31 141 17.8 15 16 31
B737-400 54 144 10.0 19 35 54
B737-300 85 126 12.7 11 74 85
B737-200 - MetroJet** 41 118 17.2 44 8 52
B737-200 23 108 20.0 11 0 11
B727-200 - Shuttle* 12 163 29.6 4 0 4
DC9-30 47 100 22.1 27 7 34
F-100 40 97 9.1 36 4 40
A319 11 120 0.6 0 28 28
A320 3 142 0.6 0 11 11
--- --- ---- --- --- ---
Average Total Aircraft 393 131 12.5 198 198 396
Hushkit Program 1999
as of 6/30/99 Stage 2 Compliance
- ------------------ ------- ----------
B737-200 14 Stage 3
B727-200 - Shuttle* 8 Retire
DC9-30 13 Retire
Firm Order/Options
as of 6/30/99 Firm Reconfirmable Options
- ------------------ ---- ------------- -------
A319/320 111 112 160
A330 7 7 16
* Shuttle,Inc. operations are currently performed by a wholly-owned subsidiary of
US Airways Group, Inc.
** The year end 1999 total fleet for B737-200-MetroJet includes 47 active lines of flying.
Certain of the information discussed above 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 8K to be filed with the Securities Exchange Commission.
</TABLE>
