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Rule 424(b)(3)
File No. 33-54243
SUPPLEMENT DATED JANUARY 29, 1996
TO
PROSPECTUS DATED JANUARY 29, 1996
AMERICA WEST AIRLINES
RECENT DEVELOPMENTS
America West Airlines, Inc. (the "Company" or "America West") recently
reported record 1995 operating and pretax income of $154.7 million and $108.4
million, respectively. The Company also reported net income for 1995 of $53.8
million or $1.15 per share on a fully diluted basis, on revenues of
approximately $1.6 billion. The 1995 results included a $10.5 million pretax
restructuring charge. America West's operating margin of 10.0% for 1995 was the
highest among major full-service U.S. airlines. Beginning with the first quarter
of 1993, the Company has achieved 12 consecutive quarters of profitability.
The financial data for the three months ended December 31, 1995 and 1994
and the year ended December 31, 1995 set forth below are derived from unaudited
financial statements and in the opinion of management contain all adjustments
(consisting of only normal recurring adjustments) necessary to present fairly
the information therein, and the information for the periods January 1 to August
25, 1994 and August 26 to December 31, 1994 has been derived from the Company's
audited financial statements. The 1995 financial data set forth below represent
preliminary unaudited results. Statements of operations data subsequent to
August 25, 1994 and balance sheet data as of December 31, 1994 and 1995 reflect
the adoption by the Company of fresh start reporting upon consummation of the
Company's reorganization and are not prepared on a basis of accounting
consistent with prior data. References to "Predecessor Company" refer to the
Company's operations prior to its reorganization.
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<CAPTION>
REORGANIZED COMPANY | PREDECESSOR
---------------------------------------------------------| COMPANY
THREE MONTHS ENDED | ------------
PERIOD FROM | PERIOD FROM
DECEMBER 31, YEAR ENDED AUGUST 26 TO | JANUARY 1 TO
------------------------- DECEMBER 31, DECEMBER 31, | AUGUST 25,
1995 1994 1995 1994 | 1994(1)
---------- ---------- ------------ ------------ | ------------
(DOLLARS IN THOUSANDS EXCEPT PER SHARE AMOUNTS AND OPERATING DATA)
<S> <C> <C> <C> <C> | <C>
STATEMENTS OF OPERATIONS DATA: |
Operating revenues.................................... $ 396,309 $ 342,451 $1,550,642 $ 469,766 | $ 939,028
Operating income...................................... 22,720(2) 30,535 154,732(2) 38,871 | 107,506
Income (loss) before income taxes and |
extraordinary items................................. 13,100 16,693 108,378 19,736 | (201,209)
Income (loss) before extraordinary items.............. 5,988 6,628 54,770 7,846 | (203,268)
Extraordinary items(3)................................ -- -- (984) -- | 257,660
Net income............................................ 5,988(2) 6,628 53,786(2) 7,846 | 54,392
Earnings per share(4): |
Primary............................................. .13 .15 1.16 .17 | 1.99
Fully diluted....................................... .12(2) .15 1.15(2) .17 | 1.41
BALANCE SHEET DATA (AT END OF PERIOD): |
Working capital deficiency............................ $ (80,416) $ (47,927) $ (80,416) $ (47,927) | $ (163,572)
Total assets.......................................... 1,598,709 1,545,092 1,598,709 1,545,092 | 1,053,780
Long-term debt, less current maturities(5)............ 373,964 465,598 373,964 465,598 | 597,839
Total stockholders' equity (deficiency)............... 649,472 595,446 649,472 595,446 | (286,395)
OPERATING DATA: |
Available seat miles (in millions).................... 4,919 4,621 19,421 6,424 | 11,636
Revenue passenger miles (in millions)................. 3,277 2,872 13,313 3,972 | 8,261
Passenger load factor (%)............................. 66.6 62.2 68.5 61.8 | 71.0
Yield per revenue passenger mile (cents).............. 11.27 11.11 10.91 11.02 | 10.68
Passenger revenue per available seat mile (cents)..... 7.51 6.91 7.48 6.81 | 7.58
Operating cost per available seat mile (cents)........ 7.60(6) 6.75 7.19(6) 6.71 | 7.15
Full time equivalent employees (at end of period)..... 8,712 10,715 8,712 10,715 | 10,849
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(1) Includes net expenses of $273.7 million incurred by the Predecessor Company
in connection with the Company's reorganization.
(2) Costs associated with the Company's recent outsourcing of its heavy aircraft
maintenance resulted in a pretax restructuring charge of approximately $10.5
million, or $6.5 million after tax, resulting in a $.14 reduction in
earnings per share (on a fully diluted basis).
(3) Includes (i) an extraordinary loss of $984,000 (or $.02 per share on a
primary and fully diluted basis) in 1995 resulting from the exchange of debt
by the Company and (ii) an extraordinary gain of $257.7 million in 1994
resulting from the discharge of indebtedness pursuant to the consummation of
the Company's plan of reorganization.
(4) Historical per share data for the Predecessor Company are not meaningful
since the Company has been recapitalized and has adopted fresh start
reporting as of August 25, 1994.
(5) Includes certain balances reported as "Estimated Liabilities Subject to
Chapter 11 Proceedings" for the Predecessor Company.
(6) Restructuring costs associated with the Company's outsourcing of its heavy
aircraft maintenance resulted in an increase in cost per available seat mile
of $.21 for the three months ended December 31, 1995 and $.05 for the year
ended December 31, 1995.
