US Airways Reports Highest Annual Profit In Company History

         US Airways Reports Highest Annual Profit In Company History

Net Income excluding special items up 384 percent versus 2011

Highlights of US Airways Group, Inc.'s (the Company) fourth quarter and 2012
results:

- Full year 2012 net profit excluding net special items was a record $537
million, or $2.79 per diluted share. This is a 384 percent improvement over
the Company's 2011 net profit of $111 million excluding net special items, or
$0.68 per diluted share.

- Fourth quarter net profit excluding net special items was $46 million, or
$0.26 per diluted share. This compares to a fourth quarter 2011 net profit
excluding net special items of $21 million, or $0.13 per diluted share.

- The airline's employees earned approximately $61 million in profit sharing
for the full year results, up 408 percent versus 2011, and an additional $19
million in operational incentive payouts through November.

PR Newswire

TEMPE, Ariz., Jan. 23, 2013

TEMPE, Ariz., Jan. 23, 2013 /PRNewswire/ -- US Airways Group, Inc. (NYSE: LCC)
today reported its fourth quarter and 2012 financial results. For full year
2012, the Company reported a record net profit of $537 million, or $2.79 per
diluted share, which excludes net special items totaling a credit of $100
million. This compares to a full year 2011 net profit of $111 million
excluding net special items, or $0.68 per diluted share. On a GAAP basis, the
Company reported a record net profit of $637 million, or $3.28 per diluted
share for 2012, up 797 percent over the 2011 net profit of $71 million, or
$0.44 per diluted share.

(Logo: http://photos.prnewswire.com/prnh/20120103/LA28814LOGO)

For the fourth quarter 2012, net profit excluding net special items was $46
million, or $0.26 per diluted share. Net profit excluding net special items
for the fourth quarter 2011 was $21 million, or $0.13 per diluted share. On a
GAAP basis, the Company reported a record net profit of $37 million for its
fourth quarter 2012, or $0.22 per diluted share, compared to a net profit of
$18 million, or $0.11 per diluted share, for the same period in 2011. As
previously disclosed, the Company's fourth quarter and full year results were
negatively impacted by approximately $35 million due to Hurricane Sandy. See
the accompanying notes in the Financial Tables section of this press release
for a reconciliation of GAAP financial information to non-GAAP financial
information.

US Airways Group, Inc. Chairman and CEO Doug Parker stated, "We couldn't be
happier with the performance of US Airways in 2012. Our 32,000 hard-working
team members did a phenomenal job of running a safe and reliable airline for
our customers and these record financial results are the result of their
efforts.

"Our team members produced the best operating reliability performance in our
history -which is no easy feat since US Airways led all network carriers in
on-time performance from 2008-2011. But in 2012, we did even better with
record highs in on-time performance, completion factor and baggage handling.
This helped lead to our best ever annual results in total revenue, total
traffic, mainline load factor, mainline yield and mainline revenue.

"These outstanding operating and revenue results combined with strong cost
discipline led to record net income excluding special items of $537 million,
up nearly 400 percent versus last year. Our shareholders were rewarded for
their confidence in our team as US Airways stock increased 166 percent in
2012, the largest increase of any company in the Fortune 500.

"We enter 2013 with great momentum and enthusiasm and are well positioned for
whatever may lie ahead," concluded Parker.

Revenue and Cost Comparisons

A strong demand environment and record passenger yields led to improved
revenue performance. Total revenues in the fourth quarter were a record $3.3
billion, up 3.9 percent versus the fourth quarter 2011 on a 1.4 percent
increase in total available seat miles (ASMs). Total revenue per ASM was a
record 15.58 cents, up 2.5 percent versus the same period last year driven by
a two point increase in passenger load factor.

For the full year 2012, total revenues were a record $13.8 billion, up 5.9
percent versus 2011. Total revenue per ASM increased 3.9 percent to a record
15.64 cents, driven by a 3.5 percent increase in passenger yield and a record
load factor of 82.9 percent, up from 82.3 percent in 2011.

Total operating expenses in the fourth quarter were $3.2 billion, up 3.5
percent over the same period last year. Mainline cost per available seat mile
(CASM) was 13.55 cents, up 2.8 percent on a 0.7 percent increase in mainline
ASMs. Excluding special items, fuel and profit sharing, mainline CASM was 8.73
cents, up 2.9 percent versus the same period last year. Express CASM excluding
special items and fuel was 14.54 cents, down 2.7 percent on a 4.8 percent
increase in ASMs.

For the full year 2012, total operating expenses were $13.0 billion, up 2.7
percent versus 2011. Excluding special items, fuel and profit sharing,
mainline CASM increased 0.5 percent to 8.39 cents. Express CASM excluding
special items and fuel decreased 1.5 percent to 14.49 cents.

Liquidity

As of December 31, 2012, the Company had $2.71 billion in total cash and
investments, of which $336 million was restricted, up from $2.31 billion, of
which $365 million was restricted on December 31, 2011.

Special Items

The Company recognized approximately $9 million of net special items in the
fourth quarter, which are primarily related to corporate transaction and
auction rate securities arbitration costs.

Notable Accomplishments

Marketing and Customer Enhancements

  oAnnounced the return of seasonal service between the Company's
    international gateway at Philadelphia International Airport and Shannon,
    Ireland.
  oAnnounced new service from Charlotte, N.C. to London's Heathrow Airport
    and Sao Paulo, Brazil.
  oLaunched a new codeshare agreement with Avianca, expanding access for
    customers throughout Colombia. The Company also expanded its current
    codeshare with TACA International Airlines and launched a new codeshare
    with South African Airways.
  oCompleted the installation of Gogo® inflight Wi-Fi internet service on
    Embraer E170 and E175 aircraft. Wi-Fi is now on more than 80 percent of US
    Airways' Embraer and Airbus narrow-body aircraft.

Operational Achievements

  oAchieved new monthly baggage performance records for 12 consecutive months
    since Dec. 2011.
  oWholly-owned subsidiary PSA Airlines became the first regional airline to
    achieve the highest level of the Federal Aviation Administration's Safety
    Management System.

Financial Accomplishments

  oCompleted an enhanced equipment trust certificate offering in the
    aggregate face amount of $546 million. The proceeds will primarily be used
    to finance the purchase of eleven Airbus aircraft scheduled to be
    delivered from May 2013 to October 2013.
  oRecognized by Institutional Investor Magazine as one of its most honored
    companies in 2013, including the top investor relations department in the
    airline industry.

Corporate Citizenship

  oRaised a record $1.46 million for United Way with annual "Hope Takes
    Flight" campaign.
  oLaunched BE PINK partnership with American Cancer Society's Making Strides
    Against Breast Cancer (MSABC) and raised $200,000 through uniform and
    merchandise sales and MSABC walks.
  oAwarded $170,000 in US Airways Education Foundation Grants to non-profits
    in Washington, Charlotte, Philadelphia and Phoenix.
  oHonored 85 top flight attendants for exceptional customer service and
    recognized the contributions of three with more than 50 years of service
    at the annual "InFlight Service Champions" dinner in Phoenix.

Analyst Conference Call/Webcast Details

US Airways will conduct a live audio webcast of its earnings call today at
11:30 a.m. ET, which will be available to the public on a listen-only basis at
www.usairways.com under the Company Info >>Investor Relations tab. An archive
of the call/webcast will be available in the Investor Relations portion of the
website through Feb. 23.

2013 Investor Guidance

The Company will provide its investor relations guidance on its website
(www.usairways.com) immediately following its 11:30 a.m. ET conference call.
The Company typically provides guidance related to cost per available seat
mile (CASM) excluding special charges, fuel and profit sharing, fuel prices,
other revenues and estimated interest expense/income on its investor relations
update page on its web site. This update will also include the airline's
capacity, fleet plan and estimated capital spending for 2013.

About US Airways

US Airways, along with US Airways Shuttle and US Airways Express, operates
more than 3,000 flights per day and serves 198 communities in the U.S.,
Canada, Mexico, Europe, the Middle East, the Caribbean, Central and South
America. The airline employs more than 32,000 aviation professionals
worldwide, operates the world's largest fleet of Airbus aircraft and is a
member of the Star Alliance network, which offers its customers more than
21,900 daily flights to 1,329 airports in 194 countries. Together with its US
Airways Express partners, the airline serves approximately 80 million
passengers each year and operates hubs in Charlotte, N.C., Philadelphia and
Phoenix, and a focus city in Washington, D.C. at Ronald Reagan Washington
National Airport. Aviation Week and Overhaul & Maintenance magazine presented
US Airways with the 2012 Aviation Maintenance, Repair and Overhaul (MRO) of
the Year Award for demonstrating outstanding achievement and innovation in the
area of technical operations. Military Times Edge magazine named US Airways as
a Best of Vets employer in 2011 and 2012. US Airways was, for the third year
in a row, the only airline included as one of the 50 best companies to work
for in the U.S. by LATINA Style magazine's 50 Report. The airline also earned
a 100 percent rating on the Human Rights Campaign Corporate Equality index for
six consecutive years. The Corporate Equality index is a leading indicator of
companies' attitudes and policies toward lesbian, gay, bisexual and
transgender employees and customers. For more company information visit
usairways.com, follow on Twitter @USAirways or at Facebook.com/USAirways.
(LCCF)

Forward Looking Statements

Certain of the statements contained or referred to herein are "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements may be identified by words such as
"may," "will," "expect," "intend," "anticipate," "believe," "estimate,"
"plan," "project," "could," "should," "would," "continue" and similar terms
used in connection with statements regarding, among others, the outlook,
expected fuel costs, revenue and pricing environment, and expected financial
performance and liquidity position of the Company. Such statements include,
but are not limited to, statements about future financial and operating
results, the Company's plans, objectives, expectations and intentions, and
other statements that are not historical facts. These statements are based
upon the current beliefs and expectations of the Company's management and are
subject to significant risks and uncertainties that could cause the Company's
actual results and financial position to differ materially from these
statements. Such risks and uncertainties include, but are not limited to, the
following: the impact of significant operating losses in the future; downturns
in economic conditions and their impact on passenger demand, booking practices
and related revenues; the impact of the price and availability of fuel and
significant disruptions in the supply of aircraft fuel; competitive practices
in the industry, including the impact of industry consolidation; increased
costs of financing, a reduction in the availability of financing and
fluctuations in interest rates; the Company's high level of fixed obligations
and ability to fund general corporate requirements, obtain additional
financing and respond to competitive developments; any failure to comply with
the liquidity covenants contained in financing arrangements; provisions in
credit card processing and other commercial agreements that may affect the
Company's liquidity; the impact of union disputes, employee strikes and other
labor-related disruptions; the inability to maintain labor costs at
competitive levels; interruptions or disruptions in service at one or more of
the Company's hub airports or focus city; regulatory changes affecting the
allocation of slots; the Company's reliance on third-party regional operators
or third-party service providers; the Company's reliance on and costs, rights
and functionality of third-party distribution channels, including those
provided by global distribution systems, conventional travel agents and online
travel agents; changes in government regulation; the impact of changes to the
Company's business model the loss of key personnel or inability to attract and
retain qualified personnel; the impact of conflicts overseas or terrorist
attacks, and the impact of ongoing security concerns; the Company's ability to
operate and grow its route network; the impact of environmental regulation;
the Company's reliance on technology and automated systems and the impact of
any failure or disruption of, or delay in, these technologies or systems;
costs of ongoing data security compliance requirements and the impact of any
significant data security breach; the impact of any accident involving the
Company's aircraft or the aircraft of its regional operators; delays in
scheduled aircraft deliveries or other loss of anticipated fleet capacity; the
Company's dependence on a limited number of suppliers for aircraft, aircraft
engines and parts; the Company's ability to operate profitably out of
Philadelphia International Airport; the impact of weather conditions and
seasonality of airline travel; the impact of possible future increases in
insurance costs or reductions in available insurance coverage; the impact of
global events that affect travel behavior, such as an outbreak of a contagious
disease; the impact of foreign currency exchange rate fluctuations; the
Company's ability to use NOLs and certain other tax attributes; and other
risks and uncertainties listed from time to time in the Company's reports to
and filings with the Securities and Exchange Commission ("SEC"). There may be
other factors not identified above of which the Company is not currently aware
that may affect matters discussed in the forward-looking statements, and may
also cause actual results to differ materially from those discussed. The
Company assumes no obligation to publicly update or supplement any
forward-looking statement to reflect actual results, changes in assumptions or
changes in other factors affecting such estimates other than as required by
law. Additional factors that may affect the future results of the Company are
set forth in the section entitled "Risk Factors" in the Company's Report on
Form 10-Q for the quarter ended September 30, 2012 and in the Company's other
filings with the SEC, which are available at www.usairways.com.



US Airways Group, Inc.
Condensed Consolidated Statements of Operations
(In millions, except share and per share amounts)
(Unaudited)
                  3 Months Ended        Percent  12 Months Ended       Percent
                  December 31,                   December 31,
                  2012       2011       Change   2012       2011       Change
Operating
revenues:
 Mainline      $      $      2.2      $      $      5.6
passenger          2,098    2,054              8,979    8,501
 Express       803        745        7.7      3,326      3,061      8.7
passenger
 Cargo         41         43         (3.9)    155        170        (8.4)
 Other         336        313        7.3      1,371      1,323      3.6
 Total
operating         3,278      3,155      3.9      13,831     13,055     5.9
revenues
Operating
expenses:
 Aircraft fuel 830        813        2.1      3,489      3,400      2.6
and related taxes
 Salaries and  600        546        9.9      2,488      2,272      9.5
related costs
 Express
expenses:
 Fuel     268        254        5.7      1,098      1,056      3.9
 Other    508        498        1.9      2,064      2,071      (0.4)
 Aircraft rent 159        159        0.1      643        646        (0.5)
 Aircraft      166        171        (3.3)    672        679        (1.0)
maintenance
 Other rent    137        137        0.1      556        555        0.3
and landing fees
 Selling       107        110        (2.3)    466        454        2.8
expenses
 Special       9          2          nm     34         24         41.4
items, net
 Depreciation  63         60         4.3      245        237        3.1
and amortization
 Other         306        297        3.1      1,220      1,235      (1.2)
 Total
operating         3,153      3,047      3.5      12,975     12,629     2.7
expenses
 Operating     125        108        15.9     856        426        nm
income
Nonoperating
income (expense):
 Interest      1          -          4.7      2          4          (62.3)
income
 Interest      (87)       (86)       (0.1)    (343)      (327)      4.8
expense, net
 Other, net    (3)        (6)        (44.8)   122        (13)       nm
 Total
nonoperating      (89)       (92)       (3.1)    (219)      (336)      (34.7)
expense, net
Income before     36         16         nm     637        90         nm
income taxes
Income tax
provision         (1)        (2)        (32.9)   -          19         nm
(benefit)
                  $      $               $      $    
 Net income       37     18  nm                    nm
                                                 637       71
Earnings per
common share
                  $      $               $      $    
 Basic          0.23     0.11                     
                                                 3.92       0.44
                  $      $               $      $    
 Diluted         0.22     0.11                     
                                                 3.28       0.44
Shares used for
computation (in
thousands):
 Basic         162,467    162,115             162,331    162,028
 Diluted       205,115    163,222             203,978    163,743
Note: Percent change may not recalculate due to rounding.



                  US Airways Group, Inc.
                  Operating Statistics
                  3 Months Ended                  12 Months Ended
                  December 31,                    December 31,
                  2012       2011     Change      2012     2011    Change
Mainline
Revenue
passenger miles   14,871     14,478   2.7    %    62,435   60,779  2.7    %
(millions)
Available seat                               
miles (ASM)       17,546     17,419   0.7         74,211   72,603  2.2    %
(millions)                                   %
Passenger load                               
factor            84.8       83.1     1.7         84.1     83.7    0.4    pts
(percent)                                    pts
Yield (cents)     14.11      14.19    (0.5)  %    14.38    13.99   2.8    %
Passenger
revenue per ASM   11.96      11.79    1.4    %    12.10    11.71   3.3    %
(cents)
Passenger
enplanements      13,350     13,136   1.6    %    54,277   52,959  2.5    %
(thousands)
Departures        108        111      (3.0)  %    449      452     (0.5)  %
(thousands)
Aircraft at end   340        340      -      %    340      340     -      %
of period
Block hours       287        292      (1.8)  %    1,209    1,217   (0.7)  %
(thousands)
Average stage     986        966      2.1    %    1,004    991     1.4    %
length (miles)
Average
passenger         1,640      1,631    0.5    %    1,704    1,691   0.8    %
journey (miles)
Fuel
consumption       260        262      (0.7)  %    1,102    1,095   0.6    %
(gallons in
millions)
Average
aircraft fuel
price including   3.19       3.10     2.9    %    3.17     3.11    2.0    %
related taxes
(dollars per
gallon)
Full-time
equivalent        31,236     31,548   (1.0)  %    31,236   31,548  (1.0)  %
employees at
end of period
Operating cost    13.55      13.18    2.8    %    13.22    13.09   1.1    %
per ASM (cents)
Operating cost
per ASM
excluding         13.50      13.16    2.5    %    13.18    13.05   1.0    %
special items
(cents)
Operating cost
per ASM
excluding         8.77       8.50     3.1    %    8.48     8.37    1.3    %
special items
and fuel
(cents)
Operating cost
per ASM
excluding
special items,
fuel and profit
sharing (cents)   8.73       8.49     2.9    %    8.39     8.35    0.5    %
Express*
Revenue
passenger miles   2,770      2,518    10.0   %    10,883   10,542  3.2    %
(millions)
Available seat
miles             3,492      3,331    4.8    %    14,214   14,070  1.0    %
(millions)
Passenger load
factor            79.3       75.6     3.7    pts  76.6     74.9    1.7    pts
(percent)
Yield (cents)     28.98      29.60    (2.1)  %    30.56    29.03   5.3    %
Passenger
revenue per ASM   22.99      22.37    2.8    %    23.40    21.75   7.6    %
(cents)
Passenger
enplanements      7,103      6,721    5.7    %    28,269   27,613  2.4    %
(thousands)
Aircraft at end   282        283      (0.4)  %    282      283     (0.4)  %
of period
Fuel
consumption       84         81       3.1    %    345      338     1.9    %
(gallons in
millions)
Average
aircraft fuel
price including   3.19       3.11     2.5    %    3.19     3.12    2.0    %
related taxes
(dollars per
gallon)
Operating cost    22.22      22.57    (1.6)  %    22.24    22.23   0.1    %
per ASM (cents)
Operating cost
per ASM
excluding         22.22      22.56    (1.5)  %    22.22    22.22   -      %
special items
(cents)
Operating cost
per ASM
excluding         14.54      14.94    (2.7)  %    14.49    14.71   (1.5)  %
special items
and fuel
(cents)
Total Mainline
& Express
Revenue
passenger miles   17,641     16,996   3.8    %    73,318   71,321  2.8    %
(millions)
Available seat
miles             21,038     20,750   1.4    %    88,425   86,673  2.0    %
(millions)
Passenger load
factor            83.9       81.9     2.0    pts  82.9     82.3    0.6    pts
(percent)
Yield (cents)     16.45      16.47    (0.1)  %    16.78    16.21   3.5    %
Passenger
revenue per ASM   13.79      13.49    2.2    %    13.92    13.34   4.3    %
(cents)
Total revenue     15.58      15.20    2.5    %    15.64    15.06   3.9    %
per ASM (cents)
Passenger
enplanements      20,453     19,857   3.0    %    82,546   80,572  2.5    %
(thousands)
Aircraft at end   622        623      (0.2)  %    622      623     (0.2)  %
of period
Fuel
consumption       344        343      0.2    %    1,447    1,433   0.9    %
(gallons in
millions)
Average
aircraft fuel
price including   3.19       3.10     2.8    %    3.17     3.11    2.0    %
related taxes
(dollars per
gallon)
Operating cost    14.99      14.68    2.1    %    14.67    14.57   0.7    %
per ASM (cents)
Operating cost
per ASM
excluding         14.94      14.67    1.9    %    14.63    14.54   0.6    %
special items
(cents)
Operating cost
per ASM
excluding         9.72       9.53     2.0    %    9.44     9.40    0.5    %
special items
and fuel
(cents)
Operating cost
per ASM
excluding
special items,
fuel and profit
sharing (cents)   9.69       9.52     1.8    %    9.37     9.39    (0.1)  %
* Express includes US Airways Group's wholly
owned regional airline subsidiaries,
Piedmont Airlines and PSA Airlines, as well
as operating and financial results from
capacity purchase agreements with Republic
Airlines, Mesa Airlines, Air Wisconsin
Airlines, Chautauqua Airlines and SkyWest
Airlines
Note: Amounts may not recalculate due to
rounding.

Reconciliation of GAAP Financial Information to Non-GAAP
Financial Information
US Airways Group, Inc. (the "Company") is providing disclosure of the
reconciliation of reported non-GAAP financial measures to their comparable
financial measures on a GAAP basis. The Company believes that the non-GAAP
financial measures provide investors the ability to measure financial
performance excluding special items and profit sharing, which is more
indicative of the Company's ongoing performance and is more comparable to
measures reported by other major airlines. The Company believes that the
presentation of mainline and express CASM excluding fuel is useful to
investors as both the cost and availability of fuel are subject to many
economic and political factors beyond the Company's control. Management uses
mainline and express CASM excluding special items, fuel and profit sharing to
evaluate the Company's operating performance.

                             3 Months Ended              12 Months Ended
                             December 31,                December 31,
                             2012           2011         2012       2011
Reconciliation of Net        (In millions, except share  (In millions, except
Income Excluding Special     and per share amounts)      share and per share
Items                                                    amounts)
Net income as reported       $    37     $    18   $   637  $    71
Special items:
 Special items, net (1)    9              2            34         24
 Express operating         -              1            3          2
special items, net (2)
 Nonoperating special      -              -            (137)      (7)
items, net (3)
 Non-cash tax provision    -              -            -          21
(4)
Net income as adjusted for   $    46     $    21   $   537  $   111
special items
                             3 Months Ended              12 Months Ended
                             December 31,                December 31,
Reconciliation of Basic and
Diluted Earnings Per Share   2012           2011         2012       2011
As
Adjusted for Special Items
Net income as adjusted for   $    46     $    21   $   537  $   111
special items
Shares used for computation
(in thousands):
 Basic                     162,467        162,115      162,331    162,028
 Diluted                   205,115        163,222      203,978    163,743
Earnings per share as
adjusted for special items:
 Basic                     $  0.28      $  0.13    $  3.31  $  0.69
 Diluted (5)               $  0.26      $  0.13    $  2.79  $  0.68
                             3 Months Ended              12 Months Ended
                             December 31,                December 31,
Reconciliation of Operating
Income Excluding Special     2012           2011         2012       2011
Items
Operating income as          $   125      $   108    $   856  $   426
reported
Special items:
 Special items, net (1)    9              2            34         24
 Express operating         -              1            3          2
special items, net (2)
Operating income as          $   134      $   111    $   893  $   452
adjusted for special items
                             3 Months Ended              12 Months Ended
                             December 31,                December 31,
Reconciliation of Operating
Cost per ASM Excluding       2012           2011         2012       2011
Special
Items, Fuel and Profit
Sharing - Mainline only
Total operating expenses     $ 3,153       $ 3,047     $ 12,975   $ 12,629
Less express expenses:
 Fuel                      (268)          (254)        (1,098)    (1,056)
 Other                     (508)          (498)        (2,064)    (2,071)
Total mainline operating     2,377          2,295        9,813      9,502
expenses
 Special items, net (1)    (9)            (2)          (34)       (24)
Mainline operating
expenses, excluding special  2,368          2,293        9,779      9,478
items
 Aircraft fuel and         (830)          (813)        (3,489)    (3,400)
related taxes
Mainline operating
expenses, excluding special  1,538          1,480        6,290      6,078
items and fuel
Profit sharing               (6)            (2)          (61)       (12)
Mainline operating
expenses, excluding special
items, fuel and
profit sharing               $ 1,532       $ 1,478     $ 6,229   $ 6,066
(In cents)
Mainline operating expenses  $ 13.55       $ 13.18     $ 13.22   $ 13.09
per ASM
 Special items, net per    (0.05)         (0.01)       (0.05)     (0.03)
ASM (1)
Mainline operating expenses
per ASM, excluding special   13.50          13.16        13.18      13.05
items
 Aircraft fuel and         (4.73)         (4.66)       (4.70)     (4.68)
related taxes per ASM
Mainline operating expenses
per ASM, excluding special
items
and fuel                     8.77           8.50         8.48       8.37
Profit sharing per ASM       (0.04)         (0.01)       (0.08)     (0.02)
Mainline operating expenses
per ASM, excluding special
items,
fuel and profit sharing      $  8.73      $  8.49    $  8.39  $  8.35
Note: Amounts may not recalculate due to rounding.
                             3 Months Ended              12 Months Ended
                             December 31,                December 31,
Reconciliation of Operating
Cost per ASM Excluding       2012           2011         2012       2011
Special
Items and Fuel - Express
only
Total express operating      $   776      $   752    $ 3,162   $ 3,127
expenses
 Express operating         -              (1)          (3)        (2)
special items, net (2)
Express operating expenses,  776            751          3,159      3,125
excluding special items
 Aircraft fuel and         (268)          (254)        (1,098)    (1,056)
related taxes
Express operating expenses,
excluding special items and  $   508      $   497    $ 2,061   $ 2,069
fuel
(In cents)
Express operating expenses   $ 22.22       $ 22.57     $ 22.24   $ 22.23
per ASM
 Express operating
special items, net per ASM   -              (0.01)       (0.02)     (0.01)
(2)
Express operating expenses
per ASM, excluding special   22.22          22.56        22.22      22.22
items
 Aircraft fuel and         (7.68)         (7.61)       (7.72)     (7.51)
related taxes per ASM
Express operating expenses
per ASM, excluding special   $ 14.54       $ 14.94     $ 14.49   $ 14.71
items and fuel
Note: Amounts may not recalculate due to rounding.
                             3 Months Ended              12 Months Ended
                             December 31,                December 31,
Reconciliation of Operating
Cost per ASM Excluding       2012           2011         2012       2011
Special
Items, Fuel and Profit
Sharing - Total Mainline
and Express
Total operating expenses     $ 3,153       $ 3,047     $ 12,975   $ 12,629
Special items:
 Special items, net (1)    (9)            (2)          (34)       (24)
 Express operating         -              (1)          (3)        (2)
special items, net (2)
Total operating expenses,    3,144          3,044        12,938     12,603
excluding special items
Fuel:
 Aircraft fuel and         (830)          (813)        (3,489)    (3,400)
related taxes - mainline
 Aircraft fuel and         (268)          (254)        (1,098)    (1,056)
related taxes - express
Total operating expenses,
excluding special items and  2,046          1,977        8,351      8,147
fuel
Profit sharing               (6)            (2)          (61)       (12)
Total operating expenses,
excluding special items,
fuel
and profit sharing           $ 2,040       $ 1,975     $ 8,290   $ 8,135
(In cents)
Total operating expenses     $ 14.99       $ 14.68     $ 14.67   $ 14.57
per ASM
Special items per ASM:
 Special items, net (1)    (0.04)         (0.01)       (0.04)     (0.03)
 Express operating         -              -            -          -
special items, net (2)
Total operating expenses
per ASM, excluding special   14.94          14.67        14.63      14.54
items
Fuel per ASM:
 Aircraft fuel and         (3.95)         (3.92)       (3.95)     (3.92)
related taxes - mainline
 Aircraft fuel and         (1.27)         (1.22)       (1.24)     (1.22)
related taxes - express
Total operating expenses
per ASM, excluding special
items
and fuel                     9.72           9.53         9.44       9.40
Profit sharing per ASM       (0.03)         (0.01)       (0.07)     (0.01)
Total operating expenses
per ASM, excluding special
items,
fuel and profit sharing      $  9.69      $  9.52    $  9.37  $  9.39
Note: Amounts may not recalculate due to rounding.

   FOOTNOTES:
   Special items, net in the 2012 and 2011 fourth quarter and twelve month
1) periods consisted of charges primarily related to corporate transaction and
   auction rate securities arbitration costs.
   The 2012 twelve month period consisted of $3 million in net special charges
2) related to the ratification of a new Piedmont fleet and passenger services
   contract.
   The 2012 twelve month period consisted primarily of a $142 million gain
   related to the slot transaction with Delta Air Lines, Inc., offset in part
   by $3 million in debt prepayment penalties and non-cash write offs of
   certain debt issuance costs related to the refinancing of two Airbus
   aircraft.

3) The 2011 twelve month period included $7 million of net special credits
   consisting of a $15 million credit in connection with an award received in
   an arbitration involving investments in auction rate securities, offset in
   part by $6 million in debt prepayment penalties and non-cash write offs of
   certain debt issuance costs related to the refinancing of five Airbus
   aircraft as well as $2 million of losses related to investments in auction
   rate securities.
   The 2011 twelve month period consisted of a special non-cash tax charge of
   $21 million as a result of the sale of our final remaining investment in
4) auction rate securities in July 2011. This charge recognized in the
   statement of operations the tax provision that was recorded in other
   comprehensive income, a subset of stockholders' equity, in the fourth
   quarter of 2009.
   The 2012 fourth quarter diluted EPS excludes $8 million of interest, net of
5) profit sharing, related to the Company's 7.25% convertible notes. The 2012
   twelve month period diluted EPS excludes $31 million of interest, net of
   profit sharing, related to the Company's 7.25% and 7% convertible notes.



US Airways Group, Inc.
Condensed Consolidated Balance Sheets
(In millions)
(Unaudited)
                                      December 31, 2012    December 31, 2011
Assets
Current assets
 Cash, cash equivalents and         $            $        
investments in marketable securities  2,376                1,947
 Accounts receivable, net           298                  327
 Materials and supplies, net        300                  235
 Prepaid expenses and other         608                  540
 Total current assets            3,582                3,049
Property and equipment
 Flight equipment                   5,188                4,591
 Ground property and equipment      1,005                907
 Less accumulated depreciation and  (1,733)              (1,501)
amortization
                                      4,460                3,997
 Equipment purchase deposits        244                  153
 Total property and equipment    4,704                4,150
Other assets
 Other intangibles, net             539                  543
 Restricted cash                    336                  365
 Other assets                       235                  228
 Total other assets              1,110                1,136
 Total assets                    $            $        
                                      9,396                8,335
Liabilities and Stockholders' Equity
Current liabilities
 Current maturities of debt and     $           $         
capital leases                        417                 436
 Accounts payable                   366                  386
 Air traffic liability              1,054                910
 Accrued compensation and vacation  258                  176
 Accrued taxes                      181                  163
 Other accrued expenses             1,027                1,089
 Total current liabilities       3,303                3,160
Noncurrent liabilities and deferred
credits
 Long-term debt and capital leases, 4,376                4,130
net of current maturities
 Deferred gains and credits, net    290                  307
 Employee benefit liabilities and   637                  588
other
 Total noncurrent liabilities    5,303                5,025
and deferred credits
Stockholders' equity
 Common stock                       2                    2
 Additional paid-in capital         2,134                2,122
 Accumulated other comprehensive    (7)                  2
income (loss)
 Accumulated deficit                (1,339)              (1,976)
 Total stockholders' equity      790                  150
 Total liabilities and           $            $        
stockholders' equity                  9,396                8,335

SOURCE US Airways Group, Inc.

Website: http://www.usairways.com
Contact: Dan Cravens, 480-693-5729
 
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