<PAGE> 1
SUPPLEMENT DATED NOVEMBER 15, 1994
TO
AMERICA WEST AIRLINES, INC. COMBINED PROSPECTUS DATED OCTOBER 20, 1994
Capitalized terms used but not defined herein have the meanings assigned to
such terms in the Prospectus.
Due to its emergence from Chapter 11 protection on August 25, 1994, and the
adoption of "fresh start reporting" pursuant to generally accepted accounting
principles, the Company's operating results for the third quarter 1994 are being
reported for two separate periods within the quarter. As a result of adopting
fresh start reporting, results for periods after August 25, 1994 are not
comparable to prior periods. For the period July 1 through August 25, 1994,
America West realized net income of $19.1 million after nonrecurring charges and
one-time gains related to the Reorganization. In the period August 26 through
September 30, 1994, the Company reported net income of $1.2 million. The Company
had net income of $14.4 million for the third quarter 1993.
Operating income for the periods July 1 through August 25 and August 26
through September 30, 1994, were $25.6 million and $8.3 million, respectively.
On a combined basis, operating income was $33.9 million for the 1994 quarter as
compared to $33.0 million for the third quarter 1993. The operating results for
the period through August 25, 1994 include operating expense adjustments
amounting to $5.1 million consisting principally of additional reserves for bad
debt and inventories.
For the nine months ended September 30, 1994, operating income amounted to
$115.8 million (combined basis), an increase of 53.8% from the $75.3 million
reported for the nine months ended September 30, 1993.
The following tables outline the third quarter and nine-month 1994 and 1993
financial and statistical results for America West Airlines, Inc. (the
"Company").
<PAGE> 2
AMERICA WEST AIRLINES, INC.
CONDENSED BALANCE SHEETS
(IN THOUSANDS OF DOLLARS)
ASSETS
<TABLE>
<CAPTION>
REORGANIZED | PREDECESSOR
COMPANY | COMPANY
------------- | ------------
SEPTEMBER 30, | DECEMBER 31,
1994 | 1993
------------- | ------------
(UNAUDITED) |
<S> <C> | <C>
Current assets: |
Cash and cash equivalents..................................... $ 204,069 | $ 99,631
Accounts receivable, less allowance for doubtful accounts of |
$3,012 in 1994 and $3,030 in 1993.......................... 72,317 | 65,744
Expendable spare parts and supplies, less allowance for |
obsolescence of $120 in 1994 and $7,231 in 1993............ 25,929 | 28,111
Prepaid expenses.............................................. 36,342 | 34,939
------------- | ------------
Total current assets.................................. 338,657 | 228,425
------------- | ------------
Property and equipment: |
Flight equipment.............................................. 440,206 | 872,104
Other property and equipment.................................. 91,303 | 180,607
------------- | ------------
531,509 | 1,052,711
Less accumulated depreciation and amortization............. 3,913 | 385,776
------------- | ------------
527,596 | 666,935
Equipment purchase deposits................................... 32,915 | 51,836
------------- | ------------
560,511 | 718,771
------------- | ------------
Restricted cash................................................. 30,578 | 46,296
Reorganization value in excess of amounts allocable to |
identifiable assets, net...................................... 665,915 | --
Other assets, net............................................... 23,514 | 23,251
------------- | ------------
$ 1,619,175 | $1,016,743
=========== | ==========
</TABLE>
<PAGE> 3
AMERICA WEST AIRLINES, INC.
CONDENSED BALANCE SHEETS
(IN THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
REORGANIZED | PREDECESSOR
COMPANY | COMPANY
------------- | ------------
SEPTEMBER 30, | DECEMBER 31,
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY) 1994 | 1993
- ------------------------------------------------------------------- ------------- | ------------
(UNAUDITED) |
<S> <C> | <C>
Current liabilities: |
Current maturities of long-term debt............................. $ 54,110 | $ 125,271
Accounts payable................................................. 95,364 | 62,957
Air traffic liability............................................ 156,013 | 118,479
Accrued compensation and vacation benefits....................... 13,317 | 11,704
Accrued interest................................................. 8,598 | 8,295
Accrued taxes.................................................... 36,611 | 14,114
Other accrued liabilities........................................ 25,290 | 11,980
------------- | ------------
Total current liabilities................................ 389,303 | 352,800
------------- | ------------
Estimated liabilities subject to Chapter 11 proceedings............ -- | 381,114
Long-term debt, less current maturities............................ 492,056 | 396,350
Manufacturers' and deferred credits................................ 120,747 | 73,592
Other liabilities.................................................. 28,351 | 67,149
Commitments and contingencies |
Stockholders' equity (deficiency): |
Preferred stock, $.25 par value. Authorized 50,000,000 shares; |
Series C 9.75% convertible preferred stock, issued and |
outstanding |
73,099 shares; $1.33 per share cumulative dividend |
(liquidation |
preference $1,000,000)........................................ -- | 18
Common stock, $.25 par value. Authorized 90,000,000 shares; |
issued and outstanding 25,291,102 at December 31, 1993........ -- | 6,323
Preferred stock, $.01 par value. Authorized 48,800,000 shares; |
issued and outstanding 0 at September 30, 1994................ -- | --
Class A common stock, $.01 par value. Authorized 1,200,000 |
shares; issued and outstanding 1,200,000 shares at September |
30, 1994...................................................... 12 | --
Class B common stock, $.01 par value. Authorized 100,000,000 |
shares; issued and outstanding 43,925,000 shares at September |
30, 1994...................................................... 439 | --
Additional paid-in capital....................................... 587,049 | 197,010
Retained earnings (deficit)...................................... 1,218 | (438,626)
------------- | ------------
588,718 | (235,275)
Less deferred compensation and notes receivable -- employee stock |
purchase plans................................................ -- | 18,987
------------- | ------------
Total stockholders' equity (deficiency).................. 588,718 | (254,262)
------------- | ------------
$ 1,619,175 | $1,016,743
========== | ==========
</TABLE>
<PAGE> 4
AMERICA WEST AIRLINES, INC.
CONDENSED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
<TABLE>
<CAPTION>
REORGANIZED | PREDECESSOR COMPANY
COMPANY | ----------------------------
------------- | THREE MONTHS
PERIOD FROM | PERIOD FROM ENDED
AUGUST 26 TO | JULY 1 TO SEPTEMBER
SEPTEMBER 30, | AUGUST 25, 30,
1994 | 1994 1993
------------- | ----------- ------------
<S> <C> | <C> <C>
Operating revenues: |
Passenger........................................... $ 118,592 | $ 217,096 $ 315,779
Cargo............................................... 4,258 | 6,156 9,487
Other............................................... 4,465 | 7,161 9,847
------------- | ----------- ------------
Total operating revenues.................... 127,315 | 230,413 335,113
------------- | ----------- ------------
Operating expenses: |
Salaries and related costs.......................... 33,047 | 51,238 77,496
Rentals and landing fees............................ 25,823 | 40,875 67,416
Aircraft fuel....................................... 15,694 | 24,852 40,572
Agency commissions.................................. 10,508 | 19,057 27,094
Aircraft maintenance materials and repairs.......... 4,768 | 9,207 7,718
Depreciation and amortization....................... 6,699 | 13,496 20,606
Other............................................... 22,440 | 46,078 61,230
------------- | ----------- ------------
Total operating expenses.................... 118,979 | 204,803 302,132
------------- | ----------- ------------
Operating income............................ 8,336 | 25,610 32,981
------------- | ----------- ------------
Nonoperating income (expenses): |
Interest income..................................... 1,083 | 126 166
Interest expense, net of capitalized interest....... (6,358) | (7,930) (13,483)
Loss on disposition of property and equipment....... (53) | (389) (1,215)
Reorganization expense, net......................... -- | (255,401) (3,726)
Other, net.......................................... 35 | (7) (27)
------------- | ----------- ------------
Total nonoperating expenses, net............ (5,293) | (263,601) (18,285)
------------- | ----------- ------------
Income (loss) before income taxes and |
extraordinary item.................................. 3,043 | (237,991) 14,696
------------- | ----------- ------------
Income taxes.......................................... 1,825 | 588 293
------------- | ----------- ------------
Income (loss) before extraordinary item............... 1,218 | (238,579) 14,403
------------- | ----------- ------------
Extraordinary gain on elimination of debt............. -- | 257,660 --
------------- | ----------- ------------
Net income............................................ 1,218 | 19,081 14,403
Retained earnings (deficit) at beginning of period.... -- | (403,315) (463,397)
Fresh start adjustments............................. -- | 384,234 --
------------- | ----------- ------------
Retained earnings (deficit) at end of period.......... $ 1,218 | $ -- $ (448,994)
========== | ========= ==========
Earnings (loss) per share: |
Primary: |
Income (loss) before extraordinary item.......... $ .03 | $ (8.43) $ .54
Extraordinary item............................... -- | 9.12 --
------------- | ----------- ------------
Net income.................................. $ .03 | $ .69 $ .54
========== | ========= ==========
Fully Diluted: |
Income (loss) before extraordinary item............. $ .03 | $ (5.93) $ .38
Extraordinary item.................................. -- | 6.42 --
------------- | ----------- ------------
Net income.................................. $ .03 | $ .49 $ .38
========== | ========= ==========
Shares used for computation: |
Primary............................................. 45,125 | 28,242 29,062
Fully diluted....................................... 45,125 | 40,144 42,041
</TABLE>
<PAGE> 5
AMERICA WEST AIRLINES, INC.
CONDENSED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
<TABLE>
<CAPTION>
REORGANIZED |
COMPANY | PREDECESSOR COMPANY
------------- | ------------------------------
PERIOD FROM | PERIOD FROM NINE MONTHS
AUGUST 26 TO | JANUARY 1 TO ENDED
SEPTEMBER 30, | AUGUST 25, SEPTEMBER 30,
------------- | ------------ -------------
1994 | 1994 1993
------------- | ------------ -------------
<S> <C> | <C> <C>
Operating revenues: |
Passenger........................................... $ 118,592 | $ 882,140 $ 919,569
Cargo............................................... 4,258 | 27,645 28,458
Other............................................... 4,465 | 29,243 28,601
------------- | ------------ -------------
Total operating revenues.................... 127,315 | 939,028 976,628
------------- | ------------ -------------
Operating expenses: |
Salaries and related costs.......................... 33,047 | 213,722 227,486
Rentals and landing fees............................ 25,823 | 173,710 207,971
Aircraft fuel....................................... 15,694 | 100,646 124,125
Agency commissions.................................. 10,508 | 78,988 79,187
Aircraft maintenance materials and repairs.......... 4,768 | 28,109 22,337
Depreciation and amortization....................... 6,699 | 56,694 60,485
Other............................................... 22,440 | 179,653 179,709
------------- | ------------ -------------
Total operating expenses.................... 118,979 | 831,522 901,300
------------- | ------------ -------------
Operating income............................ 8,336 | 107,506 75,328
------------- | ------------ -------------
Nonoperating income (expenses): |
Interest income..................................... 1,083 | 470 577
Interest expense, net of capitalized interest....... (6,358) | (33,998) (41,046)
Loss on disposition of property and equipment....... (53) | (1,659) (1,828)
Reorganization expense, net......................... -- | (273,659) (5,618)
Other, net.......................................... 35 | 131 (70)
------------- | ------------ -------------
Total nonoperating expenses, net............ (5,293) | (308,715) (47,985)
------------- | ------------ -------------
Income (loss) before income taxes and |
extraordinary item.................................. 3,043 | (201,209) 27,343
------------- | ------------ -------------
Income taxes.......................................... 1,825 | 2,059 546
------------- | ------------ -------------
Income (loss) before extraordinary item............... 1,218 | (203,268) 26,797
------------- | ------------ -------------
Extraordinary gain on elimination of debt............. -- | 257,660 --
------------- | ------------ -------------
Net income............................................ 1,218 | 54,392 26,797
Retained earnings (deficit) at beginning of period.... -- | (438,626) (475,791)
Fresh start adjustments............................. -- | 384,234 --
------------- | ------------ -------------
Retained earnings (deficit) at end of period.......... $ 1,218 | $ -- $(448,994)
========== | ========= ==========
Earnings (loss) per share: |
Primary: |
Income (loss) before extraordinary item.......... $ .03 | $ (7.03) $ 1.08
Extraordinary item............................... -- | 9.02 --
------------- | ------------ -------------
Net income.................................. $ .03 | $ 1.99 $ 1.08
========== | ========= ==========
Fully Diluted: |
Income (loss) before extraordinary item.......... $ .03 | $ (4.96) $ .73
Extraordinary item............................... -- | 6.37 --
------------- | ------------ -------------
Net income.................................. $ .03 | $ 1.41 $ .73
========== | ========= ==========
Shares used for computation: |
Primary.......................................... 45,125 | 28,550 27,580
========== | ========= ==========
Fully diluted.................................... 45,125 | 40,452 42,550
========== | ========= ==========
</TABLE>
<PAGE> 6
AMERICA WEST AIRLINES
OPERATING STATISTICS
THIRD QUARTER 1994 FINANCIAL RESULTS
<TABLE>
<CAPTION>
COMBINED THIRD QUARTER 1994
---------------------------------------------------------------
REORGANIZED
COMPANY PREDECESSOR
------------------- COMPANY
PERIOD FROM ----------------
COMBINED BASIS REORGANIZATION PERIOD FROM
THREE MONTHS (AUGUST 26, 1994, JULY 1, 1994,
ENDED TO TO
SEPTEMBER 30, 1994 SEPTEMBER 30, 1994) AUGUST 25, 1994
------------------ ------------------- ----------------
<S> <C> <C> <C>
Passenger Enplanements.................... 4,112,141 1,421,231 2,690,910
Available Seat Miles (000)................ 4,635,168 1,803,184 2,831,984
Revenue Passenger Miles (000)............. 3,221,987 1,099,285 2,122,702
Load Factor (%)........................... 69.5 61.0 75.0
Average Passenger Revenue Per Passenger
Mile (Yield)(Cents)..................... 10.42 10.79 10.23
Total Operating Revenue Per Available Seat
Mile (RASM)(Cents)...................... 7.72 7.06 8.14
Operating Cost Per Available
Seat Mile (Cents)....................... 6.99 6.60 7.23
</TABLE>
<TABLE>
<CAPTION>
COMBINED NINE MONTHS ENDED SEPTEMBER 30, 1994
---------------------------------------------------------------
REORGANIZED
COMPANY PREDECESSOR
------------------- COMPANY
PERIOD FROM ----------------
COMBINED BASIS REORGANIZATION PERIOD FROM
NINE MONTHS (AUGUST 26, 1994, JANUARY 1, 1994,
ENDED TO TO
SEPTEMBER 30, 1994 SEPTEMBER 30, 1994) AUGUST 25, 1994
------------------ ------------------- ----------------
<S> <C> <C> <C>
Passenger Enplanements.................... 11,926,510 1,421,231 10,505,279
Available Seat Miles (000)................ 13,439,121 1,803,184 11,635,937
Revenue Passenger Miles (000)............. 9,360,636 1,099,285 8,261,351
Load Factor (%)........................... 69.6 61.0 71.0
Average Passenger Revenue Per Passenger
Mile (Yield)(Cents)..................... 10.69 10.79 10.68
Total Operating Revenue Per Available Seat
Mile (RASM)(Cents)...................... 7.93 7.06 8.07
Operating Cost Per Available
Seat Mile (Cents)....................... 7.07 6.60 7.15
</TABLE>
