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)
January 13, 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) 872-5306
(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 January 13, 2000, 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 January 13, 2000
(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: January 13, 2000 By: --------------------------------
Anita P. Beier
Vice President and Controller
(Chief Accounting Officer)
US Airways, Inc. (REGISTRANT)
/s/ Anita P. Beier
Date: January 13, 2000 By: --------------------------------
Anita P. Beier
Vice President and Controller
(Chief Accounting Officer)
(this space intentionally left blank)
Exhibit 99
January 13, 2000
Dear Analysts and Investors:
Attached please find the US Airways Investor Update and the Company's
Fleet Plan Forecast for 2000 and 2001.
In addition to the attached information, we want to update you on two
unusual financial items which we will include in the Company's fourth
quarter results:
- In connection with an evaluation of its fleet, US Airways will
recognize a pretax impairment charge of $64 million during the
fourth quarter, relating to the planned retirement of the Company's
remaining DC-9 and 17 mainline 737-200 aircraft.
- During the fourth quarter, the Company will recognize a pretax gain
of approximately $7.3 million from the sale of approximately 34% of
its holdings in Equant.
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, was
contained in a Form 8-K 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 December (Actual) January February March FY 2000
----------------- ------- -------- ----- -------
<S> <C> <C> <C> <C> <C>
Available Seat Miles - Scheduled Service
-Domestic 4.7 % 8.7 % 8.6 % 8.5 % 7.4 %
-International 4.4 3.8 6.4 2.4 24.9
--- ---- ---- ---- ----
Total 4.7 % 8.1 % 8.4 % 7.8 % 9.4 %
Revenue Passenger Miles - Scheduled Service
-Domestic 0.2 % 0.6 % 1.9 % 5.3 % 6.1 %
-International 16.6 7.3 9.4 4.4 21.4
---- ---- ---- ---- ----
Total 2.0 % 1.4 % 2.7 % 5.2 % 8.1 %
Passenger Load Factor (1.7) points (3.9) points (3.5) points (1.7) points (0.8) points
Aviation Fuel
-Cost of Aviation Fuel Per Gallon
- Excluding Taxes 83.6 % 87.3 % 95.4 % 74.3 % 21.9 %
-Gallons of Aviation Fuel Consumed 2.1 1.7 (5.2) (4.3) (5.5)
Fleet Additions
-A-320 Family 4 3 1 2 50
-A-330 0 0 0 1 7
-- -- -- -- --
Total 4 3 1 3 57
Fleet Retirements
-B737-200 2 0 0 0 17
-B727-200 5 0 0 0 4
-DC9-30 7 1 0 0 15
-- -- -- -- --
Total 14 1 0 0 36
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 was contained in a Form 8-K 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 Type Average Seats Average Age (yrs.) Owned Leased Total YE 2000 YE 2001
- ---------- ------------- ------------------ ----- ------ ----- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
A-330 0 0.0 0 0 0 7 12
B767-200 203 10.5 8 4 12 12 12
B757-200 182 9.2 23 11 34 34 34
B727-200 163 26.8 4 0 4 0 0
B737-400 144 10.0 19 35 54 54 54
MD-80 141 17.8 15 16 31 31 19
B737-300 126 12.7 11 74 85 85 85
B737-200 114 17.7 56 3 59 42 42
DC9-30 100 24.4 27 7 34 19 0
F-100 97 9.0 36 4 40 40 40
A-320 Family 128 0.6 11 29 40 90 139
--- ---- --- --- --- --- ---
Average Total Aircraft 130 12.7 210 183 393 414 437
Airbus Deliveries
- -----------------
Minimum Contractual Ability
as of 12/31/99 2000 2001 2002 2003 2004 2005 2006
---- ---- ---- ---- ---- ---- ----
A320 Family 50 49 52 62 42 42 13
A330 7 5 2
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 was contained in a Form 8-K 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>
