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)
October 18, 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 October 18, 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 nine months ended September 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;
Michelle V. Bryan, Senior Vice President of Human Resources; 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 liquidity as of September 30, 2000 was $1.7 billion,
including an undrawn $500 million revolving credit facility. Total
debt outstanding including capital lease obligations as of September
30, 2000 was $2.8 billion.
The following information was also disclosed during the call:
-- Year-over-year unit revenue performance for the fourth quarter of
2000 is expected to decline as pressure on yields continue.
-- Year-over-year unit cost, excluding fuel, for the fourth quarter of
2000 is expected to decline though not as much as the decline
experienced in the third quarter of 2000.
-- US Airways anticipates paying $1.06 per gallon including taxes for
the fourth quarter of 2000.
-- Based on expected downward pressures on yield, higher fuel costs
and other factors, US Airways expects to post a loss for the fourth
quarter of 2000.
-- Available seat miles are expected to increase 13% year-over-year
for the fourth quarter of 2000. East-west capacity is expected to
grow approximately 27% and Florida capacity will increase seasonally
approximately 15%. Load factor for the fourth quarter of 2000 is
expected to increase by approximately 1.5 percentage points.
-- US Airways expects to take delivery of 18 A320-family aircraft and
two A330 aircraft in the fourth quarter of 2000, 23 A321 aircraft and
two A330 aircraft in 2001, and 17 A320-family aircraft in 2002. In
addition, US Airways anticipates having 70 regional jets deployed by
the end of 2001. US Airways expects to retire 20 DC9s, eight MD80s
and one Boeing 737-200 aircraft in 2001. Based on these assumptions,
US Airways' capacity is expected to increase 8% to 10% in 2001.
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 October 18, 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: October 18, 2000 By: --------------------------------
Anita P. Beier
Vice President and Controller
Chief Accounting Officer
US Airways, Inc. (REGISTRANT)
/s/ Anita P. Beier
Date: October 18, 2000 By: --------------------------------
Anita P. Beier
Vice President and Controller
Chief Accounting Officer
(this space intentionally left blank)
Exhibit 99
US AIRWAYS GROUP 3RD QUARTER NET LOSS IS $30 MILLION
COMPARED TO $85 MILLION LOSS IN 3RD QUARTER OF 1999
ARLINGTON, Va., Oct. 18, 2000 -- US Airways Group, Inc.,
reported a net loss for the third quarter today of $30 million on
revenues of $2.4 billion. Operating income for the quarter was $5
million. Diluted loss per common share was 45 cents.
"Our third quarter results are disappointing, reflecting very
high fuel costs and increased competition on a significant number of
routes. US Airways employees, however, are to be congratulated for a
marked year-over-year improvement in our operational performance,
especially at a time when we continue to bring a large number of new
aircraft into the system," said US Airways President and CEO Rakesh
Gangwal.
US Airways Chairman Stephen M. Wolf said: "We are continuing to
work closely with the experts at the U.S. Department of Justice, U.S.
Department of Transportation, the European Commission and the state
attorneys general on their reviews of our merger with United
Airlines, which we believe will bring vastly increased breadth of
service to communities on the US Airways system."
US Airways Group's operating income of $5 million compares to a
loss of $111 million in the third quarter of 1999. Operating revenues
for the quarter of $2.4 billion were an improvement of 13.3 percent
over 1999 while operating expenses of $2.4 billion were 7.4 percent
higher than the previous year. The net loss for the quarter of $30
million was an improvement of 64.7 percent over the net loss of $85
million in 1999. The diluted loss per common share of 45 cents
compares to a loss of $1.19 in 1999.
Total revenue passenger miles for the quarter were up 19.7
percent over the third quarter of 1999 as available seat miles rose
17.2 percent. The load factor for the period was 72.9 percent, up by
1.5 percentage points over the third quarter of 1999. Revenue per
available seat mile of 12.15 cents was 3.5 percent below that of 1999
while
-more-
US AIRWAYS GROUP 3RD QUARTER NET LOSS IS $30 MILLION
COMPARED TO $85 MILLION LOSS IN 3RD QUARTER OF 1999
Page Two
Oct. 18, 2000
cost per available seat mile of 12.28 cents was lower by 9.5 percent.
The cost of aviation fuel per gallon was 98.27 cents, an increase of
54.7 percent, while the number of gallons consumed increased 16.7
percent.
For the first nine months of 2000, operating income was $34
million, down 86.8 percent from 1999. Operating revenues of $6.9
billion were higher by 7.0 percent while operating expenses of $6.9
billion were higher by 10.9 percent, largely reflecting increased
costs for fuel. The net loss for the first nine months of $168
million is 160.4 percent below the net income of $278 million for the
comparable period of 1999, which includes a gain of $274 million
related to the sale of the Company's interest in Galileo
International, Inc. The diluted loss per common share of $2.52 is 169
percent below the diluted earnings per share of $3.65 for 1999.
Total revenue passenger miles for the first nine months were up
by 11.1 percent while total available seat miles increased 11.1
percent. The load factor for the period of 70.7 percent was unchanged
from 1999. Revenue per available seat mile for the first three
quarters of 2000 was 12.67 cents, down 4.2 percent, while cost per
available seat mile of 12.75 cents was lower by 1.7 percent. Cost of
aviation fuel per gallon was 91.04 cents, a 71.1 percent increase
over 1999, while the number of gallons of fuel consumed increased by
9.6 percent.
US Airways will conduct its third quarter conference call this
afternoon at 1 p.m. Interested parties are invited to listen to US
Airways President and CEO Gangwal and other company senior officers
as they discuss the earnings results with analysts from the
investment community. The conference call will be held via a special
webcast on US Airways' website usairways.com at the following
location:
http://investor.usairways.com/medialist.cfm
The webcast will last approximately one hour. Interested
parties should log on at least five minutes prior to the call in
order to register. An archive of the conference call also will be
available on the US Airways web site through Jan. 17, 2001.
-more-
US AIRWAYS GROUP 3RD QUARTER NET LOSS IS $30 MILLION
COMPARED TO $85 MILLION LOSS IN 3RD QUARTER OF 1999
Page Three
Oct. 18, 2000
To listen to the call, Real Player must be installed. Real
Player can be downloaded through the US Airways website by following
the instructions shown on the Presentations page (URL listed above).
The download is free and should take approximately 10 minutes.
-30-
NUMBER: 3976
US Airways Group, Inc. NEWS RELEASE
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(dollars in millions, except per share amounts)
Three Months Ended September 30,
-----------------------------------
2000 1999 % Change
--------- --------- --------
Operating Revenues
Passenger transportation $ 2,142 $ 1,869 14.6
Cargo and freight 42 34 23.5
Other 197 199 (1.0)
--------- ---------
Total Operating Revenues 2,381 2,102 13.3
Operating Expenses
Personnel costs 915 892 2.6
Aviation fuel 347 198 75.3
Commissions 90 119 (24.4)
Aircraft rent 130 124 4.8
Other rent and landing fees 116 108 7.4
Aircraft maintenance 125 130 (3.8)
Other selling expenses 105 102 2.9
Depreciation and amortization 94 92 2.2
Other 454 448 1.3
--------- ---------
Total Operating Expenses 2,376 2,213 7.4
--------- ---------
Operating Income (Loss) 5 (111) (104.5)
Other Income (Expense)
Interest income 16 19 (15.8)
Interest expense (65) (47) 38.3
Interest capitalized 9 12 (25.0)
Gain on sale of investment -- -- --
Other, net (2) -- --
--------- ---------
Other Income (Expense), Net (42) (16) 162.5
--------- ---------
Income (Loss) Before Taxes and
Cumulative Effect of
Accounting Change (37) (127) (70.9)
Provision (Credit) for
Income Taxes (7) (42) (83.3)
--------- ---------
Income (Loss) Before Cumulative
Effect of Accounting Change (30) (85) (64.7)
Cumulative Effect of Accounting
Change, Net of Applicable
Income Taxes of $63 Million -- -- --
--------- ---------
Net Income (Loss) $ (30) $ (85) (64.7)
========= =========
Earnings (Loss) per Common Share
Basic
Before Accounting Change $ (0.45) $ (1.19) (62.2)
Cumulative Effect of
Accounting Change $ -- $ -- --
--------- ---------
Net Earnings (Loss) per
Common Share $ (0.45) $ (1.19) (62.2)
========= =========
Diluted
Before Accounting Change $ (0.45) $ (1.19) (62.2)
Cumulative Effect of
Accounting Change $ -- $ -- --
--------- ---------
Net Earnings (Loss) per
Common Share $ (0.45) $ (1.19) (62.2)
========= =========
Shares Used for Computation (000)
Basic 67,056 71,601
Diluted 67,056 71,601
US Airways Group, Inc. NEWS RELEASE
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(dollars in millions, except per share amounts)
Nine Months Ended September 30,
-----------------------------------
2000 1999 % Change
--------- --------- --------
Operating Revenues
Passenger transportation $ 6,238 $ 5,788 7.8
Cargo and freight 120 110 9.1
Other 554 562 (1.4)
--------- ---------
Total Operating Revenues 6,912 6,460 7.0
Operating Expenses
Personnel costs 2,668 2,507 6.4
Aviation fuel 904 490 84.5
Commissions 280 373 (24.9)
Aircraft rent 380 343 10.8
Other rent and landing fees 336 322 4.3
Aircraft maintenance 380 367 3.5
Other selling expenses 328 297 10.4
Depreciation and amortization 277 250 10.8
Other 1,325 1,254 5.7
--------- ---------
Total Operating Expenses 6,878 6,203 10.9
--------- ---------
Operating Income (Loss) 34 257 (86.8)
Other Income (Expense)
Interest income 53 48 10.4
Interest expense (186) (144) 29.2
Interest capitalized 26 29 (10.3)
Gain on sale of investment -- 274 (100.0)
Other, net (3) 16 (118.8)
--------- ---------
Other Income (Expense), Net (110) 223 (149.3)
--------- ---------
Income (Loss) Before Taxes and
Cumulative Effect of
Accounting Change (76) 480 (115.8)
Provision (Credit) for
Income Taxes (11) 202 (105.4)
--------- ---------
Income (Loss) Before Cumulative
Effect of Accounting Change (65) 278 (123.4)
Cumulative Effect of Accounting
Change, Net of Applicable
Income Taxes of $63 Million (103) -- --
--------- ---------
Net Income (Loss) $ (168) $ 278 (160.4)
========= =========
Earnings (Loss) per Common Share
Basic
Before Accounting Change $ (0.97) $ 3.72 (126.1)
Cumulative Effect of
Accounting Change $ (1.55) $ -- --
--------- ---------
Net Earnings (Loss) per
Common Share $ (2.52) $ 3.72 (167.7)
========= =========
Diluted
Before Accounting Change $ (0.97) $ 3.65 (126.6)
Cumulative Effect of
Accounting Change $ (1.55) $ -- --
--------- ---------
Net Earnings (Loss) per
Common Share $ (2.52) $ 3.65 (169.0)
========= =========
Shares Used for Computation (000)
Basic 66,797 74,653
Diluted 66,797 76,013
US Airways, Inc. NEWS RELEASE
(A Wholly-Owned Subsidiary of US Airways Group, Inc.)
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in millions)
Three Months Ended September 30,
-----------------------------------
2000 %
(Note 1) 1999 Change
--------- --------- --------
Operating Revenues
Passenger transportation $ 1,967 $ 1,663 18.3
US Airways Express
transportation revenues 229 198 15.7
Cargo and freight 41 33 24.2
Other 139 175 (20.6)
--------- ---------
Total Operating Revenues 2,376 2,069 14.8
Operating Expenses
Personnel costs 863 832 3.7
Aviation fuel 329 182 80.8
Commissions 84 108 (22.2)
Aircraft rent 115 108 6.5
Other rent and landing fees 110 100 10.0
Aircraft maintenance 102 107 (4.7)
Other selling expenses 97 92 5.4
Depreciation and amortization 89 83 7.2
US Airways Express capacity
purchases 195 162 20.4
Other 381 402 (5.2)
--------- ---------
Total Operating Expenses 2,365 2,176 8.7
--------- ---------
Operating Income (Loss) 11 (107) (110.3)
Other Income (Expense)
Interest income 26 65 (60.0)
Interest expense (64) (48) 33.3
Interest capitalized 4 7 (42.9)
Gain on sale of investment -- -- --
Other, net (3) -- --
--------- ---------
Other Income (Expense), Net (37) 24 (254.2)
--------- ---------
Income (Loss) Before Taxes
and Cumulative Effect of
Accounting Change (26) (83) (68.7)
Provision (Credit) for
Income Taxes (3) (28) (89.3)
--------- ---------
Income (Loss) Before
Cumulative Effect of
Accounting Change (23) (55) (58.2)
Cumulative Effect of
Accounting Change, Net
of Applicable Income
Taxes of $63 Million -- -- --
--------- ---------
Net Income (Loss) $ (23) $ (55) (58.2)
========= =========
Note 1. Includes the activity of the former Shuttle, Inc. as of
July 1, 2000.
US Airways, Inc. NEWS RELEASE
(A Wholly-Owned Subsidiary of US Airways Group, Inc.)
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in millions)
Nine Months Ended September 30,
----------------------------------
2000 %
(Note 1) 1999 Change
--------- --------- --------
Operating Revenues
Passenger transportation $ 5,623 $ 5,161 9.0
US Airways Express
transportation revenues 651 581 12.0
Cargo and freight 117 107 9.3
Other 443 508 (12.8)
--------- ---------
Total Operating Revenues 6,834 6,357 7.5
Operating Expenses
Personnel costs 2,488 2,331 6.7
Aviation fuel 845 451 87.4
Commissions 257 338 (24.0)
Aircraft rent 330 295 11.9
Other rent and landing fees 310 296 4.7
Aircraft maintenance 310 289 7.3
Other selling expenses 298 268 11.2
Depreciation and amortization 256 227 12.8
US Airways Express capacity
purchases 559 466 20.0
Other 1,145 1,143 0.2
--------- ---------
Total Operating Expenses 6,798 6,104 11.4
--------- ---------
Operating Income (Loss) 36 253 (85.8)
Other Income (Expense)
Interest income 85 170 (50.0)
Interest expense (187) (145) 29.0
Interest capitalized 11 16 (31.3)
Gain on sale of investment -- 274 (100.0)
Other, net (5) 16 (131.3)
--------- ---------
Other Income (Expense), Net (96) 331 (129.0)
--------- ---------
Income (Loss) Before Taxes
and Cumulative Effect of
Accounting Change (60) 584 (110.3)
Provision (Credit) for
Income Taxes (6) 233 (102.6)
--------- ---------
Income (Loss) Before
Cumulative Effect of
Accounting Change (54) 351 (115.4)
Cumulative Effect of
Accounting Change, Net
of Applicable Income
Taxes of $63 Million (103) -- --
--------- ---------
Net Income (Loss) $ (157) $ 351 (144.7)
========= =========
Note 1. Includes the activity of the former Shuttle, Inc. as of
July 1, 2000.
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 September 30,
-------------------------------
%
2000 1999 Change
------- ------- --------
Revenue passengers (thousands)*
(Note 4) 15,809 14,369 10.0
Total revenue passenger miles
(millions) (Note 4) 12,890 10,771 19.7
Revenue passenger miles
(millions)* (Note 4) 12,879 10,750 19.8
Total available seat miles
(millions) (Note 4) 17,680 15,084 17.2
Available seat miles(millions)*
(Note 4) 17,666 15,056 17.3
Passenger load factor* (Note 4) 72.9% 71.4% 1.5 pts.
Break-even load factor (Note 2) 75.4% 76.6% (1.2)pts.
Yield* (Notes 3 and 4) 15.27c 16.18c (5.6)
Passenger revenue per available
seat mile* (Notes 3 and 4) 11.13c 11.56c (3.7)
Revenue per available seat mile
(Notes 2, 3 and 4) 12.15c 12.59c (3.5)
Cost per available seat mile
(Notes 2 and 4) 12.28c 13.57c (9.5)
Average passenger journey (miles)*
(Note 4) 815 748 9.0
Average stage length (miles)* 649 626 3.7
Revenue aircraft miles (millions)* 126 109 15.6
Cost of aviation fuel per gallon 98.27c 63.53c 54.7
Cost of aviation fuel per gallon
(excluding fuel taxes) 91.33c 57.21c 59.6
Gallons of aviation fuel consumed
(millions) 335 287 16.7
Scheduled mileage completion factor* 97.8% 95.3% 2.5 pts.
Number of aircraft in operating
fleet at period-end (Note 4) 416 404 3.0
Full-time equivalent employees at
period-end (Note 4) 44,026 40,993 7.4
* 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.
Note 4. Includes the activity of the former Shuttle, Inc. as if
it was merged into US Airways as of January 1, 1999.
US Airways, Inc. NEWS RELEASE
(A Wholly-Owned Subsidiary of US Airways Group, Inc.)
SELECTED AIRLINE OPERATING AND FINANCIAL STATISTICS (Note 1)
(unaudited)
Nine Months Ended September 30,
------------------------------
%
2000 1999 Change
------- ------- --------
Revenue passengers (thousands)*
(Note 4) 45,031 42,901 5.0
Total revenue passenger miles
(millions) (Note 4) 34,892 31,409 11.1
Revenue passenger miles
(millions)* (Note 4) 34,849 31,343 11.2
Total available seat miles
(millions) (Note 4) 49,348 44,400 11.1
Available seat miles(millions)*
(Note 4) 49,295 44,316 11.2
Passenger load factor* (Note 4) 70.7% 70.7% -- pts.
Break-even load factor (Note 2) 73.0% 69.0% 4.0 pts.
Yield* (Notes 3 and 4) 16.41c 17.22c (4.7)
Passenger revenue per available
seat mile* (Notes 3 and 4) 11.60c 12.18c (4.8)
Revenue per available seat mile
(Notes 2, 3 and 4) 12.67c 13.22c (4.2)
Cost per available seat mile
(Notes 2 and 4) 12.75c 12.97c (1.7)
Average passenger journey (miles)*
(Note 4) 774 731 5.9
Average stage length (miles)* 637 617 3.2
Revenue aircraft miles (millions)* 355 324 9.6
Cost of aviation fuel per gallon 91.04c 53.21c 71.1
Cost of aviation fuel per gallon
(excluding fuel taxes) 84.45c 47.01c 79.6
Gallons of aviation fuel consumed
(millions) 929 848 9.6
Scheduled mileage completion factor* 97.2% 96.3% 0.9 pts.
Number of aircraft in operating
fleet at period-end (Note 4) 416 404 3.0
Full-time equivalent employees at
period-end (Note 4) 44,026 40,993 7.4
* 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.
Note 4. Includes the activity of the former Shuttle, Inc. as if
it was merged into US Airways as of January 1, 1999.
US Airways Group, Inc. NEWS RELEASE
SUPPLEMENTAL SCHEDULE
(unaudited)
(dollars in millions, except per share amounts)
Three Months Ended September 30,
---------------------------------
As Reported Pro Forma %
2000 1999 Change
----------- ----------- ------
US AIRWAYS GROUP, INC. (Note 1)
Operating Revenues
Passenger transportation $ 2,142 $ 1,906 12.4
Cargo and freight 42 34 23.5
Other 197 156 26.3
------- -------
Total Operating Revenues $ 2,381 $ 2,096 13.6
======= =======
Net Income (Loss) $ (30) $ (88) (65.9)
======= =======
Earnings (Loss) per Common Share
Basic $ (0.45) $ (1.23) (63.4)
Diluted $ (0.45) $ (1.23) (63.4)
US AIRWAYS, INC. (Notes 1 and 2)
Operating Revenues
Passenger transportation $ 1,967 $ 1,740 13.0
US Airways Express
transportation revenues 229 198 15.7
Cargo and freight 41 33 24.2
Other 139 126 10.3
------- -------
Total Operating Revenues 2,376 2,097 13.3
Total Operating Expenses 2,365 2,208 7.1
------- -------
Operating Income (Loss) $ 11 $ (111) (109.9)
======= =======
Net Income (Loss) $ (23) $ (58) (60.3)
======= =======
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.
Note 2. Includes the activity of the former Shuttle, Inc. as if it
was merged into US Airways as of January 1, 1999.
US Airways Group, Inc. NEWS RELEASE
SUPPLEMENTAL SCHEDULE
(unaudited)
(dollars in millions, except per share amounts)
Nine Months Ended September 30,
---------------------------------
Pro Forma %
2000 1999 Change
---------- ----------- ------
US AIRWAYS GROUP, INC. (Note 1)
Operating Revenues
Passenger transportation $ 6,238 $ 5,892 5.9
Cargo and freight 120 110 9.1
Other 554 435 27.4
------- -------
Total Operating Revenues $ 6,912 $ 6,437 7.4
======= =======
Net Income (Loss) $ (168) $ 264 (163.6)
======= =======
Earnings (Loss) per Common Share
Basic $ (2.52) $ 3.54 (171.2)
Diluted $ (2.52) $ 3.48 (172.4)
US AIRWAYS, INC. (Notes 1 and 2)
Operating Revenues
Passenger transportation $ 5,720 $ 5,396 6.0
US Airways Express
transportation revenues 651 581 12.0
Cargo and freight 117 107 9.3
Other 413 368 12.2
------- -------
Total Operating Revenues 6,901 6,452 7.0
Total Operating Expenses 6,850 6,211 10.3
------- -------
Operating Income (Loss) $ 51 $ 241 (78.8)
======= =======
Net Income (Loss) $ (44) $ 342 (112.9)
======= =======
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.
Note 2. Includes the activity of the former Shuttle, Inc. as if it
was merged into US Airways as of January 1, 1999.
