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)
April 11, 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 April 11, 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 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; 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 served by
US Airways'; other operational matters discussed below; the impact of the
30-day cooling off period and potential cessation of operations associated
with the flight attendant 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
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) Exhibit
Designation Description
- ----------- -----------
99 Letter to investment community
dated April 11, 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: April 11, 2000 By: --------------------------------
Anita P. Beier
Vice President and Controller
(Chief Accounting Officer)
US Airways, Inc. (REGISTRANT)
/s/ Anita P. Beier
Date: April 11, 2000 By: --------------------------------
Anita P. Beier
Vice President and Controller
(Chief Accounting Officer)
(this space intentionally left blank)
Exhibit 99
April 11, 2000
Dear Analysts and Investors:
Attached please find the US Airways Investor Update and the Company's
Fleet Plan Forecast for 2000. In addition to the attached information, we
would like to update you on the factors influencing the Company's projected
loss for the first quarter of 2000.
As you are aware, US Airways' financial performance was under pressure
during the quarter. This was due, in large part, to uncertainty associated
with our flight attendant negotiations and rising fuel costs. Our revenue
performance in the quarter was negatively affected by the impact of
passengers booking away from us due to the 30-day cooling off period
associated with the labor negotiations with our flight attendants and the
related potential cessation of operations. Mainline passenger unit revenue
for the quarter is expected to decline approximately 7%. Fuel costs are
expected to rise approximately $140 million for the quarter. Further, the
Company expects to report a book tax rate of about 35% during the quarter
(exclusive of the change in accounting method for Dividend Miles, which was
recorded net of tax), compared to a rate of 40% during the first quarter of
1999. This decline in our tax rate is driven by the first quarter loss
position, offset by tax assumptions with regard to permanent tax
differences. Taking these factors into account, the Company expects a
significant loss for the quarter. In addition, the Company previously
disclosed it will recognize a charge of $103 million, net of applicable
taxes, for the cumulative effect of accounting change for Dividend Miles.
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 should be
considered "forward-looking statements" within the meaning of the Private
Securities Litigation Act of 1995. 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.)
April 2000
<CAPTION>
Year-over-Year Percentage Change
---------------------------------------------------------------------
Selected Operating and Financial Statistics March (Actual) April May June FY 2000
- ------------------------------------------- -------------- ----- ----- ---- -------
<S> <C> <C> <C> <C> <C>
Available Seat Miles - Scheduled Service
-Domestic 8.7 % 9.0 % 10.9 % 10.8 % 8.7 %
-International 2.9 7.9 20.6 30.2 24.3
--- ---- ---- ---- ----
Total 8.1 % 8.8 % 12.0 % 13.0 % 10.5 %
Revenue Passenger Miles - Scheduled Service
-Domestic 3.1 % 3.8 % 9.3 % 8.7 % 6.7 %
-International (0.8) 8.6 12.4 28.5 19.9
---- ---- ---- ---- ----
Total 2.6 % 4.4 % 9.7 % 11.4 % 8.4 %
Passenger Load Factor (3.7) points (3.0) points (1.5) points (1.1) points (1.4) points
Aviation Fuel
-Cost of Aviation Fuel Per Gallon
- Excluding Taxes 137.0 % 80.0 % 61.0 % 49.0 % 35.0 %
Fleet Additions*
-A320 Family 2 3 2 4 50
-A330 1 2 1 1 7
-- -- -- -- --
Total 3 5 3 5 57
Fleet Retirements*
-B737-200 0 0 1 0 17
-B727-200 0 0 0 0 4
-DC9-30 0 0 2 1 11
-- -- -- -- --
Total 0 0 3 1 32
* Includes equipment operated by Shuttle, Inc.
Certain of the information discussed above should be considered "forward-looking statements" within the meaning of the Private
Securities Litigation Act of 1995. 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
April 2000
<CAPTION>
Number of Aircraft: Year End 2000
Fleet Count as ----------------------------------------------------------------
Fleet Type* of 3/31/2000 Average Seats Average Age (yrs.) Owned Leased Total
- ----------- -------------- ------------- ------------------ ----- ------ -----
<S> <C> <C> <C> <C> <C> <C>
A330 1 266 0.7 7 0 7
B767-200 12 203 11.5 8 4 12
B757-200 34 182 10.2 23 11 34
B727-200 4 0 0.0 0 0 0
B737-400 54 144 11.0 19 35 54
MD-80 31 141 18.8 15 16 31
B737-300 85 126 13.7 11 74 85
B737-200 59 116 18.0 39 3 42
DC9-30 33 100 25.6 17 2 23
F-100 40 97 10.1 36 4 40
A320 Family 46 128 1.1 49 41 90
--- --- ---- --- --- ---
Average Total Aircraft 399 134 11.0 224 190 418
* Includes equipment operated by Shuttle, Inc.
Certain of the information discussed above should be considered "forward-looking statements" within the meaning of the Private
Securities Litigation Act of 1995. 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>
