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)
August 12, 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 August 12, 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.
Item 7. Financial Statements and Exhibits
(c) Exhibit
Designation Description
- ----------- -----------
99 Letter to investment community
dated August 12, 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: August 12, 1999 By: --------------------------------
Anita P. Beier
Vice President and Controller
(Chief Accounting Officer)
US Airways, Inc. (REGISTRANT)
/s/ Anita P. Beier
Date: August 12, 1999 By: --------------------------------
Anita P. Beier
Vice President and Controller
(Chief Accounting Officer)
(this space intentionally left blank)
Exhibit 99
August 12, 1999
Dear Analysts and Investors:
Attached please find the US Airways Investor Update for the month of
July and the Company's Fleet Plan Forecast for fiscal year 1999.
In July, our capacity and traffic were adversely impacted by our 7.6%
flight cancellation rate as compared to 1.8% for July 1998. August
completion factor is also expected to lag last year's level. As discussed
in our second quarter earnings conference call, we have reduced scheduled
flying for the remainder of the year due to delays in aircraft returning
from regularly scheduled maintenance.
As we disclosed in our second quarter Form 10-Q, we expect continuing
revenue pressure for the balance of the year and negative impacts on third
quarter unit revenue and unit cost.
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 8-K 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.)
August 1999
<CAPTION>
Year-over-Year Percentage Change
----------------------------------------------------------------------
Selected Operating and Financial Statistics July (Actual) August September October FY 1999
------------ ------ ------ ------ -------
<S> <C> <C> <C> <C> <C>
Available Seat Miles - Scheduled Service
-Domestic 1.0 % 3.6 % 5.6 % 7.2 % 3.6 %
-International 17.9 17.3 19.6 19.3 17.5
--- ---- ---- ---- ----
Total 2.8 % 5.1 % 7.1 % 8.5 % 5.1 %
Revenue Passenger Miles - Scheduled Service
-Domestic (2.2)% (2.3)% (4.4)% (0.8)% (1.0)%
-International 19.0 16.0 17.3 15.6 17.1
---- ---- ---- ---- ----
Total 0.2 % (0.2)% (1.7)% 2.5 % 1.0 %
Passenger Load Factor (2.0) points (3.9) points (5.8) points (4.0) points (2.8) points
Aviation Fuel
-Cost of Aviation Fuel Per Gallon
- Excluding Taxes 19.9 % 36.8 % 34.5 % 31.9 % 9.7 %
-Gallons of Aviation Fuel Consumed 2.6 6.0 4.6 2.9 3.2
Fleet Additions
-A319 4 2 1 3 22
-A320 1 3 1 0 11
-- -- -- -- --
Total 5 5 2 3 33
Fleet Retirements
-B737-200 0 0 0 2 5
-B727-200 - Shuttle* 1 0 0 0 8
-DC9-30 2 0 1 0 16
-- -- -- -- --
Total 3 0 1 2 29
* These aircraft are operated by Shuttle, Inc., 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 8-K 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.)
August 1999
<CAPTION>
Number of Aircraft: 1999 Year End
Fleet Plan ---------------------------------------------------------------
as of
Fleet Type 07/31/1999 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 44 118 17.3 39 8 47
B737-200 20 108 19.5 12 0 12
B727-200 - Shuttle* 11 163 29.6 4 0 4
DC9-30 45 100 22.1 27 7 34
F-100 40 97 9.1 36 4 40
A319 15 120 0.6 0 28 28
A320 5 142 0.5 0 11 11
--- --- ---- --- --- ---
Average Total Aircraft 396 131 12.5 194 198 392
Hushkit Program 1999
as of 7/31/99 Stage 2 Compliance
- ------------------ ------- ----------
B737-200 13 Stage 3
B727-200 - Shuttle* 7 Retire
DC9-30 11 Retire
Firm Order/Options
as of 7/31/99 Firm Reconfirmable Options
- ------------------ ---- ------------- -------
A319/320 106 112 160
A330 7 7 16
* These aircraft are operated by Shuttle, Inc., 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
8-K to be filed with the Securities Exchange Commission.
</TABLE>
