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 7, 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 June 7, 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,
second quarter 1999 earnings 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.
Item 7. Financial Statements and Exhibits
(c) Exhibit
Designation Description
- ----------- -----------
99 Letter to investment community
dated June 7, 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: June 7, 1999 By: --------------------------------
Anita P. Beier
Vice President and Controller
Chief Accounting Officer
US Airways, Inc. (REGISTRANT)
/s/ Anita P. Beier
Date: June 7, 1999 By: --------------------------------
Anita P. Beier
Vice President and Controller
Chief Accounting Officer
(this space intentionally left blank)
Exhibit 99
June 7, 1999
Dear Analysts and Investors:
Attached please find the US Airways Investor Update for the month of
May and the Company's Fleet Plan Forecast for fiscal year 1999.
In last month's US Airways Investor Update, we discussed several
factors which were influencing our capacity levels for 1999 and 2000. The
result of that is a reduced capacity for the remainder of 1999.
Specifically, US Airways has reduced its year-over-year capacity growth
forecast for fiscal year 1999 to 6%, with 5% growth in the second quarter,
8% in the third quarter and 6% in the fourth quarter.
Two factors are influencing our second quarter earnings per share.
First, traffic in May was softer than anticipated. Second, expenses are
expected to be somewhat higher than planned, driven by wage adjustments for
certain large employee groups as a result of resolving open labor contracts
earlier than anticipated and due to lingering higher than anticipated
SABRE-related transition costs. The net result is that we expect second
quarter diluted earnings per share, excluding non-recurring items,
to be around $1.80 to $1.85. At the same time, we are pleased at having
resolved these open labor issues in a harmonious manner.
I am hopeful that the information contained in the update and forecast
will assist you in your analysis of the Company. As always, if you have
any questions or comments with respect to the foregoing, 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 as soon as practical following the release of this information.
<TABLE>
US AIRWAYS INVESTOR UPDATE
US Airways, Inc. (A Wholly-Owned Subsidiary of US Airways Group, Inc.)
June 1999
<CAPTION>
Year-over-Year Percentage Change
----------------------------------------------------------------------
Selected Operating and Financial Statistics May (Actual) June July August FY 1999
------------ ------ ------ ------ -------
<S> <C> <C> <C> <C> <C>
Available Seat Miles - Scheduled Service
-Domestic 4.0 % 6.6 % 6.0 % 7.4 % 4.6 %
-International 8.6 13.0 18.1 17.6 17.6
--- ---- ---- ---- ----
Total 4.5 % 7.3 % 7.3 % 8.5 % 5.9 %
Revenue Passenger Miles - Scheduled Service
-Domestic (3.3)% 1.0 % 1.2 % 2.7 % 1.4 %
-International 14.6 13.3 21.3 17.3 18.3
---- ---- ---- ---- ----
Total (1.2)% 2.5 % 3.4 % 4.4 % 3.3 %
Passenger Load Factor (4.1) points (3.5) points (2.8) points (3.0) points (1.8) points
Aviation Fuel
-Cost of Aviation Fuel Per Gallon
- Excluding Taxes 2.2 % 2.2 % 3.3 % 10.9 % 3.6 %
-Gallons of Aviation Fuel Consumed 6.9 8.2 8.1 8.9 6.2
Fleet Additions
-A319 1 1 5 0 22
-A320 1 1 3 0 11
-- -- -- -- --
Total 2 2 8 0 33
Fleet Retirements
-B727-200 - Shuttle* 0 1 0 0 8
-DC9-30** 0 0 2 0 16
-- -- -- -- --
Total 0 1 2 0 24
* Shuttle,Inc. operations are currently performed by a wholly-owned subsidiary of US Airways Group, Inc.
** Three of these DC9-30 aircraft will be retired on January 1, 2000.
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 SEC as soon as practical following the release of this
information.
</TABLE>
<TABLE>
US AIRWAYS FLEET PLAN
US Airways, Inc. (A Wholly-Owned Subsidiary of US Airways Group, Inc.)
June 1999
<CAPTION>
Number of Aircraft: 1999 Year End
Fleet Plan
Fleet Type 05/31/1999 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 38 118 17.2 44 3 47
B737-200 26 108 20.0 13 4 17
B727-200 - Shuttle* 12 163 29.6 4 0 4
DC9-30** 47 100 22.9 30 7 37
F-100 40 97 9.1 36 4 40
A319 11 120 0.6 0 28 28
A320 2 142 0.5 0 11 11
--- --- ---- --- --- ---
Average Total Aircraft 392 134 12.7 203 197 400
Hushkit Program 1999
as of 5/31/99 Stage 2 Compliance
- ------------------ ------- ----------
B737-200 16 Stage 3
B727-200 - Shuttle* 8 Retire
DC9-30 13 Retire
Firm Order/Options
as of 5/31/99 Firm Reconfirmable Options
- ------------------ ---- ------------- -------
A319/320 115 112 160
A330 7 7 16
* Shuttle,Inc. operations are currently performed by a wholly-owned subsidiary of
US Airways Group, Inc.
** Three of these DC9-30 aircraft will be retired on January 1, 2000.
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 SEC as soon as practical following the release of this information.
</TABLE>
