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)
December 16, 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 December 16, 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, disruptions relating to labor negotiations 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 December 16, 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: December 16, 1999 By: --------------------------------
Anita P. Beier
Vice President and Controller
(Chief Accounting Officer)
US Airways, Inc. (REGISTRANT)
/s/ Anita P. Beier
Date: December 16, 1999 By: --------------------------------
Anita P. Beier
Vice President and Controller
(Chief Accounting Officer)
(this space intentionally left blank)
Exhibit 99
December 16, 1999
Dear Analysts and Investors:
Attached please find the US Airways Investor Update for the month of
November and the Company's Fleet Plan Forecast for 1999, 2000 and 2001.
Consistent with the October 7, 1999 US Airways Investor Update, US
Airways' fleet growth plan will result in an anticipated increase in the
Company's available seat miles (ASMs) of 8% to 10% for 2000 from our
anticipated 1999 results, with approximately 3 percentage points of that
growth coming from improved operational performance. Specifically, in the
first quarter of 2000, we anticipate year-over-year capacity growth to be
approximately 7.5%, with an 8% increase in domestic capacity and a 2%
increase in international capacity. Likewise, in the second, third and
fourth quarters of 2000 we anticipate ASM growth to be 7.5%, 10% and 10%,
respectively. Those increases can be traced to anticipated ASM growth rates
of 23% for international operations, 6% for domestic operations in the
second quarter; 30% international, 7.5% domestic ASM growth in the third
quarter; and 40% international, 6% domestic ASM growth in the fourth
quarter.
Our Airbus deliveries are used both to replace existing aircraft to
simplify our fleet and to take advantage of profitable growth
opportunities. Currently, we have the contractual ability to take delivery
of 50 A320 family aircraft and 7 A330 aircraft in 2000; 49 A320 family
aircraft and 5 A330 aircraft in 2001; 52 A320 family aircraft and 2 A330
aircraft in 2002; 62 A320 family aircraft in 2003; 42 A320 family aircraft
in both 2004 and 2005; and 13 A320 family aircraft in 2006.
I hope that you find the 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. US Airways assumes no obligation to update such estimates to
reflect actual results, changes in assumptions or changes in other factors
affecting such estimates.
<TABLE>
US AIRWAYS INVESTOR UPDATE
US Airways, Inc. (A Wholly-Owned Subsidiary of US Airways Group, Inc.)
December 1999
<CAPTION>
Year-over-Year Percentage Change
-------------------------------------------------------------------------
Selected Operating and Financial Statistics November (Actual) December FY 1999 January 2000 February 2000
---------------- -------- ------- ------------ -------------
<S> <C> <C> <C> <C> <C>
Available Seat Miles - Scheduled Service
-Domestic 6.4 % 3.8 % 2.7 % 8.1 % 8.1 %
-International 5.3 6.0 17.0 1.6 3.0
--- ---- ---- ---- ---
Total 6.3 % 4.1 % 4.2 % 7.3 % 7.5 %
Revenue Passenger Miles - Scheduled Service
-Domestic 4.6 % (0.4)% (1.6) % 1.6 % 3.2 %
-International 23.7 18.7 18.0 5.5 3.7
---- ---- ---- ---- ----
Total 6.6 % 1.6 % 0.5 % 2.0 % 3.3 %
Passenger Load Factor (0.2) points (1.5) points (2.6) points (3.1) points (2.6) points
Aviation Fuel
-Cost of Aviation Fuel Per Gallon
- Excluding Taxes 51.1 % 80.7 % 14.0 % 87.3 % 95.4 %
-Gallons of Aviation Fuel Consumed 9.2 3.1 3.3 4.6 5.9
Fleet Additions
-A319 2 3 22 1 2
-A320 2 1 12 2 1
-A330 0 0 0 0 0
-- -- -- -- --
Total 4 4 34 3 3
Fleet Retirements
-B737-200 1 2 5 0 0
-B727-200 - Shuttle* 1 5 8 0 0
-DC9-30 2 7 16 1 0
-- -- -- -- --
Total 4 14 29 1 0
* 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. US Airways assumes no
obligation to update such estimates to reflect actual results, changes in assumptions or changes in other factors affecting such
estimates.
</TABLE>
<TABLE>
US AIRWAYS FLEET PLAN
US Airways, Inc. (A Wholly-Owned Subsidiary of US Airways Group, Inc.)
December 1999
<CAPTION>
Number of Aircraft: Year End 1999 Estimated Fleet Count
Fleet Count --------------------------------------------------------------- ---------------------
as of
Fleet Type 11/30/1999 Average Seats Average Age (yrs.) Owned Leased Total YE 2000 YE 2001
- ---------- ---------- ------------- ------------------ ----- ------ ----- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
A-330 0 0 0.0 0 0 0 7 12
B767-200 12 203 10.5 8 4 12 12 8
B757-200 34 182 9.2 23 11 34 34 34
B727-200* 9 163 26.8 4 0 4 0 0
B737-400 54 144 10.0 19 35 54 54 54
MD-80 31 141 17.8 15 16 31 31 19
B737-300 85 126 12.7 11 74 85 81 72
B737-300 - MetroJet 0 0 0.0 0 0 0 4 13
B737-200 - MetroJet 45 115 17.0 39 3 42 42 42
B737-200 16 108 19.4 17 0 17 0 0
DC9-30 41 100 24.4 27 7 34 23 0
F-100 40 97 9.0 36 4 40 40 40
A-320 11 146 0.6 0 12 12 24 43
A-319 25 120 0.6 0 28 28 66 96
--- --- ---- --- --- --- --- ---
Average Total Aircraft 403 130 12.7 199 194 393 418 433
Hushkit Program 1999
as of 11/30/99 Stage 2 Compliance
- --------------- ------- ----------
B737-200 4 Stage 3/Retire
B727-200* 6 Retire
DC9-30 9 Retire
</TABLE>
<TABLE>
Airbus Deliveries
- -----------------
<CAPTION>
Contractual Ability
as of 11/30/99 2000 2001 2002 2003 2004 2005 2006
------------------- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
A320 Family 50 49 52 62 42 42 13
A330 7 5 2
* 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. US Airwa ys assumes no obligation
to update such estimates to reflect actual results, changes in assumptions or changes in other factors affecting such estimates.
</TABLE>
