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 19, 2000
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) 872-7000
(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 19, 2000, US Airways Group, Inc. (US Airways Group or the
"Company") and US Airways, Inc. (US Airways) issued a news release
disclosing the results of operations for both companies for the three
and six months ended June 30, 2000, and selected operating and
financial statistics for US Airways for the same period (see Exhibit
99 to this report).
Rakesh Gangwal, President and Chief Executive Officer of both US
Airways Group and US Airways, Lawrence M. Nagin, Executive Vice
President--Corporate Affairs and General Counsel of both companies,
Thomas A. Mutryn, Senior Vice President--Finance and Chief Financial
Officer of both companies and Greg Taylor, Senior Vice President--
Planning for US Airways, spoke with industry analysts on a conference
call following the news release.
During the call, select balance sheet information was provided.
The Company's cash position as of June 30, 2000 was $1.0 billion.
Total debt outstanding including capital lease obligations as of June
30, 2000 was $2.7 billion.
The following information was also disclosed during the call:
-- For the third quarter of 2000, unit cost excluding fuel expense,
is expected to decline. US Airways expects to pay approximately 83
cents per gallon for fuel including taxes which translates into
approximately $260 million, of which $60 million is due to higher fuel
price.
-- Year-over-year unit revenue performance for the third quarter is
expected to decline.
-- Available seat miles are expected to increase 17% year-over-year
for the third quarter. The increase is due to four factors: a 3.6%
increase in scheduled departures, a 6.5% increase in average stage
length, a 2% increase in average aircraft size and substantially
better departure completion factor than that experienced in the prior
year period.
-- For the third quarter, transatlantic capacity (as measured by
ASMs) is expected to increase 40% due to new routes and the addition
of the larger A330s in that region. Transcontinental and Caribbean
capacity is expected to increase by 30% and 22%, respectively. System
load factor is expected to increase by approximately one-half of one
percentage point year-over-year.
Certain of the information discussed on the conference call
should be considered "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995 which is
subject to a number of risks and uncertainties. The preparation of
forward-looking statements requires the use of estimates of future
revenues, expenses, activity levels and economic and market
conditions, many of which are outside US Airways' control. Specific
factors that could cause actual results to differ materially from
those set forth in the forward-looking statements include: economic
conditions; labor costs; financing costs; aviation fuel costs; the
anticipated merger of the Company and a subsidiary of UAL Corporation;
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 served by US Airways; other operational matters 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 statements, 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) Exhibits
Designation Description
----------- -----------
99 News release dated July 19, 2000 of US Airways
Group, Inc. and US Airways, Inc.
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 19, 2000 By: --------------------------------
Anita P. Beier
Vice President and Controller
Chief Accounting Officer
US Airways, Inc. (REGISTRANT)
/s/ Anita P. Beier
Date: July 19, 2000 By: --------------------------------
Anita P. Beier
Vice President and Controller
Chief Accounting Officer
(this space intentionally left blank)
Exhibit 99
US AIRWAYS GROUP 2nd QUARTER NET INCOME IS $80 MILLION
ARLINGTON, Va., July 19, 2000 - US Airways Group, Inc., reported
net income for the second quarter today of $80 million on revenues of
$2.4 billion. Operating income for the quarter was $168 million.
Diluted earnings per common share were $1.17.
"While there was a significant impact on earnings from the high
cost of fuel, US Airways has benefited from the improved business
climate affecting the entire industry," said US Airways President and
CEO Rakesh Gangwal.
Gangwal noted that there were a number of major developments
during the quarter, including the approval of a new flight attendant
contract, continued gains internationally and the rapid development
of US Airways' new Airbus fleet, with the addition of A330-300
transatlantic aircraft as well as new single-aisle A319s and A320s.
"Despite the competitive pressures from low-cost carriers and
the challenge of an unusual number of summer storms and associated
air traffic control delays, US Airways' employees are to be
congratulated for remaining focused on providing the highest levels
of service," Gangwal said.
US Airways Chairman Stephen M. Wolf said, "Going forward, we are
focused on bringing to fruition the merger between US Airways and
United Airlines, a development that will bring great benefit to the
traveling public as well as the employees and shareholders of US
Airways."
US Airways Group's operating income of $168 million was down by
39.8 percent from the $279 million reported in the second quarter of
1999. This was the result primarily of sharply increased fuel costs
and the negative impact on passenger volume and yields from
threatened labor action at the end of the first quarter that
continued to have an impact in the second. Total operating expenses
for the quarter were $2.3 billion, an increase of 12.9 percent over
the second quarter of 1999.
-more-
US AIRWAYS GROUP 2nd QUARTER NET
INCOME IS $80 MILLION
Page Two
July 19, 2000
Pre-tax income for the quarter was $135 million, 74.6 percent
below the comparable 1999 figure of $532 million, which included a
gain of $274 million relating to the company's sale of its interest
in Galileo International, Inc. and expense credits totaling $16
million resulting from asset dispositions. Net income of $80 million
was 74.8 percent below the second quarter 1999 net income figure of
$317 million.
On a per-share basis, the $1.17 figure for second quarter 2000
compares to $4.26 for second quarter 1999, including the nonrecurring
items and $1.83 excluding nonrecurring items.
For the second quarter of 2000, US Airways' revenue passenger
miles increased by 11.4 percent with a 9.6 percent increase in
available seat miles. The number of passengers increased by 5.4
percent, the length of the average passenger journey by 5.7 percent
and the passenger load factor by 1.2 percentage points to 74.7
percent. Revenue per available seat mile was 13.33 cents, down 2.7
percent while cost per available seat mile was 12.62 cents, an
increase of 2.0 percent, driven largely by increased fuel costs. Cost
of aviation fuel per gallon for the quarter was 85.29 cents, an
increase of 62.8 percent over the previous year.
For the first six months of 2000, the net loss was $138 million
as compared to net income, including one-time gains, of $363 million
for the first half of 1999. Operating revenues for the period were
$4.5 billion, an increase of 4.0 percent, while operating expenses
were $4.5 billion, an increase of 12.8 percent. Operating income for
the six-month period was $29 million as compared to $368 million in
1999, again largely reflecting increased fuel costs. Loss per common
share for the period was $2.07 as compared to diluted earnings per
share of $4.67, including one-time factors, in the first half of
1999.
Revenue passenger miles for the six-month period increased 6.6
percent with an increase in available seat miles of 8.1 percent. The
number of passengers carried increased 2.2 percent and the length of
the average passenger journey by 4.5 percent, while the passenger
load factor for the period declined by 1.0 percentage points to 69.7
percent. Revenue per available seat mile was 12.88 cents, down by 4.0
percent, while cost per available seat mile was 12.99 cents, an
increase of 3.5 percent. Cost of aviation fuel per gallon was 86.98
cents, an increase of 81.5 percent over 1999.
PARTICIPANT INFORMATION
In connection with the merger of US Airways with a wholly-owned
subsidiary of UAL Corporation, US Airways filed a preliminary proxy
statement on Schedule 14A with the United States Securities and
Exchange Commission (the "SEC") on July 6, 2000. STOCKHOLDERS OF US
AIRWAYS ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT WHEN IT
BECOMES AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION.
Information concerning participants in the solicitation of proxies by
US Airways from stockholders to approve the merger as well as
information on how you can get the definitive proxy statement for
free, when it becomes available, and other relevant documents, on the
SEC web site is contained in the Schedule 14A filed by US Airways
with the SEC pursuant to Rule 14a-12 of the Securities Exchange Act
of 1934, as amended, on May 25, 2000.
-30-
NUMBER: 3930
US Airways Group, Inc. NEWS RELEASE
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(dollars in millions, except per share amounts)
Three Months Ended June 30,
-----------------------------------
2000 1999 % Change
--------- --------- --------
Operating Revenues
Passenger transportation $ 2,212 $ 2,063 7.2
Cargo and freight 39 35 11.4
Other 182 188 (3.2)
--------- ---------
Total Operating Revenues 2,433 2,286 6.4
Operating Expenses
Personnel costs 878 813 8.0
Aviation fuel 284 162 75.3
Commissions 99 130 (23.8)
Aircraft rent 125 105 19.0
Other rent and landing fees 109 106 2.8
Aircraft maintenance 126 120 5.0
Other selling expenses 115 95 21.1
Depreciation and amortization 92 77 19.5
Other 437 399 9.5
--------- ---------
Total Operating Expenses 2,265 2,007 12.9
--------- ---------
Operating Income 168 279 (39.8)
Other Income (Expense)
Interest income 25 14 78.6
Interest expense (65) (47) 38.3
Interest capitalized 8 9 (11.1)
Gain on sale of investment -- 274 (100.0)
Other, net (1) 3 (133.3)
--------- ---------
Other Income (Expense), Net (33) 253 (113.0)
--------- ---------
Income (Loss) Before Taxes and
Cumulative Effect of
Accounting Change 135 532 (74.6)
Provision (Credit) for
Income Taxes 55 215 (74.4)
--------- ---------
Income (Loss) Before Cumulative
Effect of Accounting Change 80 317 (74.8)
Cumulative Effect of Accounting
Change, Net of Applicable
Income Taxes of $63 Million -- -- --
--------- ---------
Net Income (Loss) $ 80 $ 317 (74.8)
========= =========
Earnings (Loss) per Common Share
Basic
Before Accounting Change $ 1.19 $ 4.34 (72.6)
Cumulative Effect of
Accounting Change $ -- $ -- --
--------- ---------
Net Earnings (Loss) per
Common Share $ 1.19 $ 4.34 (72.6)
========= =========
Diluted
Before Accounting Change $ 1.17 $ 4.26 (72.5)
Cumulative Effect of
Accounting Change $ -- $ -- --
--------- ---------
Net Earnings (Loss) per
Common Share $ 1.17 $ 4.26 (72.5)
========= =========
Shares Used for Computation (000)
Basic 66,831 72,981
Diluted 68,282 74,457
US Airways Group, Inc. NEWS RELEASE
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(dollars in millions, except per share amounts)
Six Months Ended June 30,
-----------------------------------
2000 1999 % Change
--------- --------- --------
Operating Revenues
Passenger transportation $ 4,096 $ 3,919 4.5
Cargo and freight 78 75 4.0
Other 357 364 (1.9)
--------- ---------
Total Operating Revenues 4,531 4,358 4.0
Operating Expenses
Personnel costs 1,754 1,615 8.6
Aviation fuel 557 292 90.8
Commissions 190 254 (25.2)
Aircraft rent 250 219 14.2
Other rent and landing fees 220 214 2.8
Aircraft maintenance 256 238 7.6
Other selling expenses 222 195 13.8
Depreciation and amortization 183 158 15.8
Other 870 805 8.1
--------- ---------
Total Operating Expenses 4,502 3,990 12.8
--------- ---------
Operating Income 29 368 (92.1)
Other Income (Expense)
Interest income 37 29 27.6
Interest expense (122) (97) 25.8
Interest capitalized 17 17 --
Gain on sale of investment -- 274 (100.0)
Other, net -- 17 (100.0)
--------- ---------
Other Income (Expense), Net (68) 240 (128.3)
--------- ---------
Income (Loss) Before Taxes and
Cumulative Effect of Accounting
Change (39) 608 (106.4)
Provision (Credit) for
Income Taxes (4) 245 (101.6)
--------- ---------
Income (Loss) Before Cumulative
Effect of Accounting Change (35) 363 (109.6)
Cumulative Effect of Accounting
Change, Net of Applicable Income
Taxes of $63 million (103) -- --
--------- ---------
Net Income (Loss) $ (138) $ 363 (138.0)
========= =========
Earnings (Loss) per Common Share
Basic
Before Accounting Change $ (0.52) $ 4.76 (110.9)
Cumulative Effect of
Accounting Change $ (1.55) $ -- --
--------- ---------
Net Earnings (Loss) per
Common Share $ (2.07) $ 4.76 (143.5)
========= =========
Diluted
Before Accounting Change $ (0.52) $ 4.67 (111.1)
Cumulative Effect of
Accounting Change $ (1.55) $ -- --
--------- ---------
Net Earnings (Loss) per
Common Share $ (2.07) $ 4.67 (144.3)
========= =========
Shares Used for Computation(000)
Basic 66,665 76,205
Diluted 66,665 77,671
US Airways, Inc. NEWS RELEASE
(A Wholly-Owned Subsidiary of US Airways Group, Inc.)
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in millions)
Three Months Ended June 30,
-----------------------------------
%
2000 1999 Change
--------- --------- --------
Operating Revenues
Passenger transportation $ 1,972 $ 1,838 7.3
US Airways Express
transportation revenues 231 206 12.1
Cargo and freight 38 34 11.8
Other 158 170 (7.1)
--------- ---------
Total Operating Revenues 2,399 2,248 6.7
Operating Expenses
Personnel costs 814 755 7.8
Aviation fuel 264 150 76.0
Commissions 91 118 (22.9)
Aircraft rent 107 90 18.9
Other rent and landing fees 98 97 1.0
Aircraft maintenance 105 95 10.5
Other selling expenses 104 85 22.4
Depreciation and amortization 85 71 19.7
US Airways Express capacity
purchases 185 159 16.4
Other 385 361 6.6
--------- ---------
Total Operating Expenses 2,238 1,981 13.0
--------- ---------
Operating Income 161 267 (39.7)
Other Income (Expense)
Interest income 34 56 (39.3)
Interest expense (66) (47) 40.4
Interest capitalized 5 4 25.0
Gain on sale of investment -- 274 (100.0)
Other, net (2) 4 (150.0)
--------- ---------
Other Income (Expense), Net (29) 291 (110.0)
--------- ---------
Income (Loss) Before Taxes
and Cumulative Effect of
Accounting Change 132 558 (76.3)
Provision (Credit) for
Income Taxes 54 219 (75.3)
--------- ---------
Income (Loss) Before
Cumulative Effect of
Accounting Change 78 339 (77.0)
Cumulative Effect of
Accounting Change, Net
of Applicable Income
Taxes of $63 Million -- -- --
--------- ---------
Net Income (Loss) $ 78 $ 339 (77.0)
========= =========
US Airways, Inc. NEWS RELEASE
(A Wholly-Owned Subsidiary of US Airways Group, Inc.)
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in millions)
Six Months Ended June 30,
-----------------------------------
%
2000 1999 Change
--------- --------- --------
Operating Revenues
Passenger transportation $ 3,656 $ 3,499 4.5
US Airways Express
transportation revenues 422 382 10.5
Cargo and freight 76 73 4.1
Other 304 334 (9.0)
--------- ---------
Total Operating Revenues 4,458 4,288 4.0
Operating Expenses
Personnel costs 1,625 1,499 8.4
Aviation fuel 517 269 92.2
Commissions 173 230 (24.8)
Aircraft rent 215 187 15.0
Other rent and landing fees 200 196 2.0
Aircraft maintenance 208 182 14.3
Other selling expenses 201 177 13.6
Depreciation and amortization 167 144 16.0
US Airways Express capacity
purchases 364 305 19.3
Other 762 739 3.1
--------- ---------
Total Operating Expenses 4,432 3,928 12.8
--------- ---------
Operating Income 26 360 (92.8)
Other Income (Expense)
Interest income 59 105 (43.8)
Interest expense (123) (97) 26.8
Interest capitalized 8 8 --
Gain on sale of investment -- 274 (100.0)
Other, net (4) 17 (123.5)
--------- ---------
Other Income (Expense), Net (60) 307 (119.5)
--------- ---------
Income (Loss) Before Taxes
and Cumulative Effect of
Accounting Change (34) 667 (105.1)
Provision (Credit) for
Income Taxes (3) 261 (101.1)
--------- ---------
Income (Loss) Before
Cumulative Effect of
Accounting Change (31) 406 (107.6)
Cumulative Effect of
Accounting Change, Net
of Applicable Income
Taxes of $63 Million (103) -- --
--------- ---------
Net Income (Loss) $ (134) $ 406 (133.0)
========= =========
US Airways, Inc. NEWS RELEASE
(A Wholly-Owned Subsidiary of US Airways Group, Inc.)
SELECTED AIRLINE OPERATING AND FINANCIAL STATISTICS (Note 1)
(unaudited)
Three Months Ended June 30,
-----------------------------
%
2000 1999 Change
------- ------- --------
Revenue passengers (thousands)* 15,554 14,755 5.4
Total revenue passenger miles
(millions) 12,155 10,910 11.4
Revenue passenger miles
(millions)* 12,138 10,886 11.5
Total available seat miles
(millions) 16,266 14,846 9.6
Available seat miles(millions)* 16,247 14,817 9.7
Passenger load factor* 74.7% 73.5% 1.2 pts.
Break-even load factor (Note 2) 72.1% 65.7% 6.4 pts.
Yield* (Note 3) 16.24c 17.20c (5.6)
Passenger revenue per available
seat mile* (Note 3) 12.14c 12.64c (4.0)
Revenue per available seat mile
(Note 2 and 3) 13.33c 13.70c (2.7)
Cost per available seat mile
(Note 2) 12.62c 12.37c 2.0
Average passenger journey (miles)* 780 738 5.7
Average stage length (miles)* 645 612 5.4
Revenue aircraft miles (millions)* 118 110 7.3
Cost of aviation fuel per gallon 85.29c 52.40c 62.8
Cost of aviation fuel per gallon
(excluding fuel taxes) 78.98c 46.22c 70.9
Gallons of aviation fuel consumed
(millions) 309 286 8.0
Schedule mileage completion factor* 97.1% 97.6% (0.5)pts.
Number of aircraft in operating
fleet at period-end 395 382 3.4
Full-time equivalent employees at
period-end 42,653 39,599 7.7
* Scheduled service only (excludes charter service).
c cents
Note 1. Includes US Airways' "mainline" operations and
the operations of its low-cost product, MetroJet.
Note 2. Financial statistics exclude the revenues and expenses
generated under capacity purchase arrangements US Airways
has with certain US Airways Express air carriers.
Note 3. Effective January 1, 2000, US Airways changed its
accounting policy related to Dividend Miles revenue
recognition in connection with guidance found in the
Securities and Exchange Commission Staff Accounting
Bulletin 101, "Revenue Recognition in Financial
Statements." The 1999 amount has been adjusted to show
what US Airways would have reported if the new accounting
policy had been in effect in periods prior to 2000.
US Airways, Inc. NEWS RELEASE
(A Wholly-Owned Subsidiary of US Airways Group, Inc.)
SELECTED AIRLINE OPERATING AND FINANCIAL STATISTICS (Note 1)
(unaudited)
Six Months Ended June 30,
-----------------------------
%
2000 1999 Change
------- ------- --------
Revenue passengers (thousands)* 28,357 27,752 2.2
Total revenue passenger miles
(millions) 21,830 20,483 6.6
Revenue passenger miles
(millions)* 21,798 20,439 6.6
Total available seat miles
(millions) 31,324 28,980 8.1
Available seat miles(millions)* 31,284 28,924 8.2
Passenger load factor* 69.7% 70.7% (1.0)pts.
Break-even load factor (Note 2) 71.6% 65.4% 6.2 pts.
Yield* (Note 3) 16.77c 17.45c (3.9)
Passenger revenue per available
seat mile* (Note 3) 11.69c 12.33c (5.2)
Revenue per available seat mile
(Note 2 and 3) 12.88c 13.42c (4.0)
Cost per available seat mile
(Note 2) 12.99c 12.55c 3.5
Average passenger journey (miles)* 769 736 4.5
Average stage length (miles)* 630 613 2.8
Revenue aircraft miles (millions)* 229 215 6.5
Cost of aviation fuel per gallon 86.98c 47.92c 81.5
Cost of aviation fuel per gallon
(excluding fuel taxes) 80.58c 41.78c 92.9
Gallons of aviation fuel consumed
(millions) 594 561 5.9
Schedule mileage completion factor* 96.9% 96.8% 0.1 pts.
Number of aircraft in operating
fleet at period-end 395 382 3.4
Full-time equivalent employees at
period-end 42,653 39,599 7.7
* Scheduled service only (excludes charter service).
c cents
Note 1. Includes US Airways' "mainline" operations and
the operations of its low-cost product, MetroJet.
Note 2. Financial statistics exclude the revenues and expenses
generated under capacity purchase arrangements US Airways
has with certain US Airways Express air carriers.
Note 3. Effective January 1, 2000, US Airways changed its
accounting policy related to Dividend Miles revenue
recognition in connection with guidance found in the
Securities and Exchange Commission Staff Accounting
Bulletin 101, "Revenue Recognition in Financial
Statements." The 1999 amount has been adjusted to show
what US Airways would have reported if the new accounting
policy had been in effect in periods prior to 2000.
US Airways Group, Inc. NEWS RELEASE
SUPPLEMENTAL SCHEDULE
(unaudited)
(dollars in millions, except per share amounts)
Three Months Ended June 30,
-----------------------------------------------
As
Reported Pro Forma
1999 % 1999 %
2000 (Note 1) Change (Note 1) Change
-------- --------- ------ --------- ------
US AIRWAYS GROUP, INC.
Operating Revenues
Passenger transportation $ 2,212 $ 2,063 7.2 $ 2,098 5.4
Cargo and freight 39 35 11.4 35 11.4
Other 182 188 (3.2) 145 25.5
------- ------- -------
Total Operating Revenues $ 2,433 $ 2,286 6.4 $ 2,278 6.8
======= ======= =======
Net Income (Loss) $ 80 $ 317 (74.8) $ 313 (74.4)
======= ======= =======
Earnings (Loss) per Common Share
Basic $ 1.19 $ 4.34 (72.6) $ 4.28 (72.2)
Diluted $ 1.17 $ 4.26 (72.5) $ 4.20 (72.1)
US AIRWAYS, INC.
Operating Revenues
Passenger transportation $ 1,972 $ 1,838 7.3 $ 1,873 5.3
US Airways Express
transportation revenue 231 206 12.1 206 12.1
Cargo and freight 38 34 11.8 34 11.8
Other 158 170 (7.1) 127 24.4
------- ------- -------
Total Operating Revenues $ 2,399 $ 2,248 6.7 $ 2,240 7.1
======= ======= =======
Net Income (Loss) $ 78 $ 339 (77.0) $ 335 (76.7)
======= ======= =======
Note 1. Effective January 1, 2000, US Airways changed its accounting policy
related to Dividend Miles revenue recognition in connection with
guidance found in the Securities and Exchange Commission Staff
Accounting Bulletin 101,"Revenue Recognition in Financial Statements."
The Pro Forma 1999 amounts above are provided to show what US Airways
would have reported if the new accounting policy had been in effect in
periods prior to 2000.
US Airways Group, Inc. NEWS RELEASE
SUPPLEMENTAL SCHEDULE
(unaudited)
(dollars in millions, except per share amounts)
Six Months Ended June 30,
-----------------------------------------------
As
Reported Pro Forma
1999 % 1999 %
2000 (Note 1) Change (Note 1) Change
-------- --------- ------ --------- ------
US AIRWAYS GROUP, INC.
Operating Revenues
Passenger transportation $ 4,096 $ 3,919 4.5 $ 3,987 2.7
Cargo and freight 78 75 4.0 75 4.0
Other 357 364 (1.9) 279 28.0
------- ------- -------
Total Operating Revenues $ 4,531 $ 4,358 4.0 $ 4,341 4.4
======= ======= =======
Net Income (Loss) $ (138) $ 363 (138.0) $ 353 (139.1)
======= ======= =======
Earnings (Loss) per Common Share
Basic $ (2.07) $ 4.76 (143.5) $ 4.63 (144.7)
Diluted $ (2.07) $ 4.67 (144.3) $ 4.54 (145.6)
US AIRWAYS, INC.
Operating Revenues
Passenger transportation $ 3,656 $ 3,499 4.5 $ 3,566 2.5
US Airways Express
transportation revenue 422 382 10.5 382 10.5
Cargo and freight 76 73 4.1 73 4.1
Other 304 334 (9.0) 250 21.6
------- ------- -------
Total Operating Revenues $ 4,458 $ 4,288 4.0 $ 4,271 4.4
======= ======= =======
Net Income (Loss) $ (134) $ 406 (133.0) $ 396 (133.8)
======= ======= =======
Note 1. Effective January 1, 2000, US Airways changed its accounting policy
related to Dividend Miles revenue recognition in connection with
guidance found in the Securities and Exchange Commission Staff
Accounting Bulletin 101,"Revenue Recognition in Financial Statements."
The Pro Forma 1999 amounts above are provided to show what US Airways
would have reported if the new accounting policy had been in effect in
periods prior to 2000.
