Highlights of the US Airways Group, Inc. (the Company) third quarter 2007
results:
- Net profit for the third quarter 2007 was $177 million, or $1.87 per
diluted share versus a net loss of $78 million, or ($0.88) per share for
the third quarter 2006.
- Excluding special items, third quarter 2007 net profit was $185 million
or $1.96 per diluted share versus a net profit of $101 million or $1.09 per
share in 2006.
- On a year to date basis, US Airways has accrued $55 million for its
annual employee profit sharing program.
- The Company had $3.1 billion in total cash and investments, of which $0.5
billion was restricted, on September 30, 2007.
TEMPE, Ariz., Oct. 25 /PRNewswire-FirstCall/ -- US Airways Group, Inc.
(NYSE: LCC) today reported its third quarter 2007 results. Net profit for
the third quarter was $177 million, or $1.87 per diluted share, compared to
a net loss of $78 million, or ($0.88) per share for the same period last
year. Excluding net special items of $8 million, the Company reported a net
profit of $185 million, or $1.96 per diluted share for its third quarter
2007. This compares to a net profit excluding special items of $101
million, or $1.09 per diluted share for the third quarter of 2006, which
included $179 million of special items. See the accompanying notes in the
Financial Tables section of this press release for a reconciliation of
Generally Accepted Accounting Principles (GAAP) financial information to
non-GAAP financial information.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050223/LAW097LOGO)
US Airways Group Chairman and CEO Doug Parker stated, "We are very
pleased to report a sharp improvement in our third quarter earnings.
Customer demand has kept pace with supply and the revenue environment has
held up well in spite of the credit market challenges and economic
uncertainty experienced during the quarter. We are particularly pleased to
note that overall industry capacity has remained in check during this
period of recovery for our industry, which is a notable change from the
past.
"We are especially pleased with the improvement we've seen in operating
reliability as the result of our operational improvement plan. During
September 2007, more than 80 percent of our flights arrived on time and we
completed 99 percent of our flights as scheduled. This was our best on-time
performance so far in 2007 and the second best month since our merger in
September 2005. We have begun the fourth quarter well and are optimistic
that we are on track to regain our position as an industry leader in
operational reliability.
"Also during the third quarter, we completed the merger of our
operating certificates and US Airways now operates under a single operating
certificate. This accomplishment reflects two years of effort on the part
of many employees to combine policies, procedures, flight operating systems
and maintenance standards with the end goal to become one airline in the
eyes of the Federal Aviation Administration (FAA). Our team did a fantastic
job, and we applaud and recognize their accomplishment of making the
cutover seamless for our passengers.
"These results are due to the great work of our 37,000 employees who
remain committed to their airline while we complete our integration work
and transition back to consistent operating fundamentals. As a result of
their efforts, we are producing one of the top profit margins in our
industry and have accrued $55 million year-to-date for our employee profit
sharing program.
"Looking into the current quarter, demand remains robust and the yield
environment also remains strong. Recent fuel price increases remain
problematic, but so long as our industry continues its recent capacity
restraint we are optimistic about prospects for 2008," concluded Parker.
Revenue and Cost Comparisons
Mainline passenger revenue per available seat mile (PRASM) was 10.85
cents, up 6.5 percent over the same period last year. Express PRASM was
19.31 cents, up 4.0 percent over the third quarter 2006. Total mainline and
Express PRASM for US Airways Group was 12.15 cents, which was up 5.6
percent over the third quarter 2006 on a 2.9 decline in total available
seat miles (ASMs).
Mainline cost per available seat mile (CASM) at US Airways Group was
11.11 cents, down 2.6 percent versus the same period last year on a
decrease in mainline capacity of 2.4 percent versus the third quarter of
2006. Excluding fuel, unrealized and realized gains/losses on fuel hedging
instruments, and merger related transition expenses, mainline CASM was 7.68
cents, up 5.7 percent from the same period last year.
Chief Financial Officer Derek Kerr stated, "Our increase in CASM
excluding fuel and special items was largely associated with the
implementation of our operational improvement plan. We also pulled capacity
down slightly to help ease some of the northeast air traffic control issues
and other operational challenges. Because of the short-term nature of this
capacity reduction, we were not able to pull out all of the corresponding
fixed costs and as a result, experienced an increase in unit costs during
the third quarter.
"While clearly not satisfied with our cost performance during the third
quarter, we took the steps necessary to improve our operational
reliability. We have seen a significant improvement in our operation and
anticipate the rate of increase in CASM (excluding fuel and special items)
to be lower as we move forward."
Liquidity
As of Sept. 30, 2007, the Company had $3.1 billion in total cash and
investments, of which $0.5 billion was restricted.
Second Quarter Special Items
During its third quarter, the Company recognized $8 million of net
special items. Expenses for the quarter included $17 million of
merger-related transition expenses and $4 million of special non-cash state
tax provision from the utilization of pre-acquisition net operating losses
(NOL). These expenses were offset by a $13 million non-cash credit for
unrealized net gains associated with the change in fair value of the
Company's outstanding fuel hedge contracts.
Other Notable Accomplishments
Operations
-- Marked a significant milestone by obtaining a single operating
certificate from the FAA. The single certificate allows US Airways to
operate as a single airline with one set of policies, procedures,
computer systems, maintenance and flight control systems.
-- Hired a new Chief Operating Officer (COO), Robert Isom, who has 15
years of airline experience and most recently served as Chief
Restructuring Officer of GMAC, LLC. As COO, Isom oversees the
airline's operations, including flight operations, inflight services,
maintenance and engineering, airport customer service, reservations,
cargo and the Express operation.
-- For the ninth consecutive year, Charlotte's line maintenance facility
earned the FAA's highest award for excellence in maintenance -- the
AMT Diamond Award.
-- The airline maintenance and reliability groups set a new V2500 engine
operating hours performance record with the completion of more than
30,000 flight hours.
-- Announced plans to offer recall to all pilots furloughed by pre-merger
US Airways, move some 140 pilots at regional partners as part of the
jets for jobs program back to mainline, and hire an additional 350
pilots by the end of 2008.
Marketing
-- Awarded the right to fly the first ever route between Philadelphia and
the Chinese capital city of Beijing by the U.S. Department of
Transportation (DOT). The daily service to China will begin in 2009.
The flight will originate at the airline's hub in Charlotte, N.C.
-- Announced new codeshare agreement with Air New Zealand, which gives
passengers the ability to connect seamlessly between the United
States, New Zealand, Australia, and the Pacific Islands from Los
Angeles and San Francisco.
-- Launched a mobile-device friendly version of usairways.com allowing
customers to search for flights, purchase tickets, check flight
status, make changes to an existing reservation, and access their
Dividend Miles account conveniently with a handheld mobile device.
Analyst Conference Call/Webcast Details
US Airways will conduct a live audio webcast of its earnings call today
at 12:30 p.m. EDT, which will be available to the public on a listen-only
basis at http://www.usairways.com under the About US >> Investor Relations
tab. An archive of the call/webcast will be available in the
Public/Investor Relations portion of the Web site through Nov. 25, 2007.
The airline will also update its investor relations guidance on its Web
site (http://www.usairways.com). Information that could be updated includes
cost per available seat mile (CASM) excluding fuel and transition expenses,
fuel prices and hedging positions, other revenues, estimated interest
expense/income and merger related transition expense guidance. The investor
relations update page also includes the airline's capacity, fleet plan for
2007 and estimated capital spending for 2007.
About US Airways
US Airways is the fifth largest domestic airline employing nearly
37,000 aviation professionals worldwide. US Airways, US Airways Shuttle and
US Airways Express operate approximately 3,600 flights per day and serve
more than 230 communities in the U.S., Canada, Europe, the Caribbean and
Latin America. The new US Airways -- the product of a merger between
America West and US Airways in September 2005 -- is a member of the Star
Alliance network, which offers our customers 16,000 daily flights to 855
destinations in 155 countries worldwide. This press release and additional
information on US Airways can be found at http://www.usairways.com. (LCCF)
Forward Looking Statements
Certain of the statements contained herein should be considered
"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," "indicate,"
"anticipate," "believe," "forecast," "estimate," "plan," "guidance,"
"outlook," "could," "should," "continue" and similar terms used in
connection with statements regarding the outlook of US Airways Group, Inc.
(the "Company"). Such statements include, but are not limited to,
statements about expected fuel costs, the revenue and pricing environment,
the Company's expected financial performance and operations, future
financing plans and needs, overall economic conditions and the benefits of
the business combination transaction involving America West Holdings
Corporation and US Airways Group, including future financial and operating
results and the combined companies' plans, objectives, expectations and
intentions. Other forward-looking statements that do not relate solely to
historical facts include, without limitation, statements that discuss the
possible future effects of current known trends or uncertainties or which
indicate that the future effects of known trends or uncertainties cannot be
predicted, guaranteed or assured. Such 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
the Company's expectations. Such risks and uncertainties include, but are
not limited to, the following: the impact of high fuel costs, significant
disruptions in the supply of aircraft fuel and further significant
increases to fuel prices; our high level of fixed obligations and our
ability to obtain and maintain financing for operations and other purposes;
our ability to achieve the synergies anticipated as a result of the merger
and to achieve those synergies in a timely manner; our ability to integrate
the management, operations and labor groups of US Airways Group and America
West Holdings; labor costs and relations with unionized employees generally
and the impact and outcome of labor negotiations; the impact of global
instability, including the current instability in the Middle East, the
continuing impact of the military presence in Iraq and Afghanistan and the
terrorist attacks of September 11, 2001 and the potential impact of future
hostilities, terrorist attacks, infectious disease outbreaks or other
global events that affect travel behavior; reliance on automated systems
and the impact of any failure or disruption of these systems; the impact of
future significant operating losses; changes in prevailing interest rates;
our ability to obtain and maintain commercially reasonable terms with
vendors and service providers and our reliance on those vendors and service
providers; security-related and insurance costs; changes in government
legislation and regulation; our ability to use pre-merger NOLs and certain
other tax attributes; competitive practices in the industry, including
significant fare restructuring activities, capacity reductions and in court
or out of court restructuring by major airlines; continued existence of
prepetition liabilities; interruptions or disruptions in service at one or
more of our hub airports; weather conditions; our ability to obtain and
maintain any necessary financing for operations and other purposes; our
ability to maintain adequate liquidity; our ability to maintain contracts
that are critical to our operations; our ability to operate pursuant to the
terms of our financing facilities (particularly the financial covenants);
our ability to attract and retain customers; the cyclical nature of the
airline industry; our ability to attract and retain qualified personnel;
economic conditions; and other risks and uncertainties listed from time to
time in our reports to the Securities and Exchange Commission. 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. All forward-looking statements are based on information
currently available to the Company. The Company assumes no obligation to
publicly update or revise any forward-looking statement to reflect actual
results, changes in assumptions or changes in other factors affecting such
estimates. Additional factors that may affect the future results of the
Company are set forth in the section entitled "Risk Factors" in the
Company's Quarterly Report on Form 10-Q for the period ended September 30,
2007, which is available at http://www.usairways.com.
US Airways Group, Inc.
Condensed Consolidated Statements of Operations
(in millions except share and per share amounts)
(unaudited)
3 Months 3 Months 9 Months 9 Months
Ended Ended Percent Ended Ended Percent
September September Change September September Change
30, 2007 30, 2006 30, 2007 30, 2006
Operating revenues
Mainline
passenger $2,133 $2,052 4.0 $6,233 $6,048 3.1
Express passenger 692 703 (1.5) 2,039 2,095 (2.7)
Cargo 32 40 (19.7) 102 114 (10.1)
Other 179 173 2.9 550 514 6.8
Total operating
revenues 3,036 2,968 2.3 8,924 8,771 1.7
Operating expenses
Aircraft fuel and
related taxes 692 719 (3.8) 1,900 1,943 (2.2)
Loss (gain) on fuel
hedging instruments,
net:
Realized (20) - nm 17 (12) nm
Unrealized (13) 88 nm (128) 44 nm
Salaries and
related costs 555 529 5.1 1,659 1,574 5.4
Express expenses:
Fuel 199 210 (5.2) 539 585 (7.8)
Other 450 443 1.4 1,382 1,345 2.8
Aircraft rent 182 181 0.7 542 546 (0.7)
Aircraft
maintenance 144 142 1.4 479 432 10.7
Other rent and
landing fees 141 146 (4.0) 408 432 (5.6)
Selling expenses 116 120 (3.4) 347 348 (0.3)
Special items, net 17 27 (36.7) 83 18 nm
Depreciation and
amortization 47 42 11.9 137 132 3.9
Other 324 305 7.0 952 901 5.4
Total operating
expenses 2,834 2,952 (4.0) 8,317 8,288 0.3
Operating income 202 16 nm 607 483 25.8
Nonoperating income
(expense)
Interest income 43 45 (2.8) 131 111 18.4
Interest expense,
net (66) (74) (10.8) (206) (221) (7.0)
Other, net 2 (4) nm (11) (14) (15.9)
Total nonoperating
expense, net (21) (33) (34.9) (86) (124) (30.6)
Income (loss) before
income taxes and
cumulative effect of
change in accounting
principle 181 (17) nm 521 359 45.3
Income tax provision 4 61 (93.8) 15 68 (78.2)
Income (loss) before
cumulative effect of
change in accounting
principle 177 (78) nm 506 291 74.1
Cumulative effect of
change in accounting
principle - - nm - 1 nm
Net income (loss) $177 $(78) nm $506 $292 74.1
Income (loss) per
share before
cumulative effect of
change in accounting
principle:
Basic $1.93 $(0.88) $5.54 $3.41
Diluted $1.87 $(0.88) $5.33 $3.20
Net income (loss) per
share:
Basic $1.93 $(0.88) $5.54 $3.42
Diluted $1.87 $(0.88) $5.33 $3.21
Shares used for
computation
(in thousands):
Basic 91,542 88,212 91,461 85,286
Diluted 95,492 88,212 95,776 94,474
US Airways Group, Inc.
Operating Statistics
3 Months 3 Months 9 Months 9 Months
Ended Ended Ended Ended
September September Percent September September Percent
30, 2007 30, 2006 Change 30, 2007 30, 2006 Change
Mainline
Revenue
passenger
miles
(in millions) 16,395 15,950 2.8 47,106 46,058 2.3
Available seat
miles (ASM)
(in millions) 19,669 20,156 (2.4) 57,748 58,020 (0.5)
Passenger load
factor (percent) 83.4 79.1 4.3pts 81.6 79.4 2.2pts
Yield (cents) 13.01 12.86 1.2 13.23 13.13 0.8
Passenger revenue
per ASM (cents) 10.85 10.18 6.5 10.79 10.42 3.6
Passenger
enplanements
(in thousands) 14,962 14,425 3.7 44,317 43,189 2.6
Aircraft
(end of period) 359 357 0.6 359 357 0.6
Block Hours 340,146 352,316 (3.5) 1,019,840 1,025,598 (0.6)
Average stage
length (miles) 945 956 (1.1) 929 933 (0.5)
Average passenger
journey (miles) 1,558 1,576 (1.1) 1,505 1,497 0.5
Fuel consumption
(gallons in
millions) 311.3 318.5 (2.3) 909.8 912.5 (0.3)
Average fuel price
(dollars per
gallon) with
related taxes 2.22 2.26 (1.6) 2.09 2.13 (1.9)
Average fuel price
including related
taxes and realized
loss (gain) on
fuel hedging
instruments, net
(dollars) 2.16 2.26 (4.6) 2.11 2.12 (0.5)
Full-time
equivalent
employees
(end of period) 34,321 33,252 3.2 34,321 33,252 3.2
Operating cost
per ASM (cents) 11.11 11.40 (2.6) 11.07 10.96 1.1
Operating cost
per ASM excluding
special items
(cents) 11.09 10.83 2.4 11.17 10.85 2.9
Operating cost
per ASM excluding
special items,
fuel and realized
gain (loss) on
fuel hedging
instruments,
net (cents) 7.68 7.26 5.7 7.85 7.52 4.3
Express*
Revenue passenger
miles (in
millions) 2,704 2,722 (0.7) 7,827 8,058 (2.9)
Available seat
miles (in
millions) 3,587 3,785 (5.2) 10,592 11,204 (5.5)
Passenger load
factor (percent) 75.4 71.9 3.5pts 73.9 71.9 2.0pts
Passenger revenue
per ASM (cents) 19.31 18.57 4.0 19.25 18.70 3.0
Passenger
enplanements
(in thousands) 6,662 6,556 1.6 19,474 19,527 (0.3)
Fuel consumption
(gallons in
millions) 86.3 91.6 (5.8) 256.6 267.2 (4.0)
Average fuel
price (dollars
per gallon) with
related taxes 2.30 2.29 0.5 2.10 2.19 (4.0)
Operating cost
per ASM (cents) 18.09 17.27 4.8 18.14 17.22 5.3
TOTAL - Mainline
& Express
Revenue passenger
miles (in
millions) 19,099 18,672 2.3 54,933 54,116 1.5
Available seat
miles (in
millions) 23,256 23,941 (2.9) 68,340 69,224 (1.3)
Passenger load
factor (percent) 82.1 78.0 4.1pts 80.4 78.2 2.2pts
Passenger revenue
per ASM (cents) 12.15 11.51 5.6 12.10 11.76 2.9
Total revenue
per ASM (cents) 13.06 12.40 5.3 13.06 12.67 3.1
Passenger
enplanements
(in thousands) 21,624 20,981 3.1 63,791 62,716 1.7
Operating cost
per ASM (cents) 12.19 12.33 (1.2) 12.17 11.97 1.6
* Express includes US Airways Group's wholly owned regional airline
subsidiaries, Piedmont Airlines and PSA Airlines, US Airways'
MidAtlantic regional jet division, through May 27, 2006, as well as
operating and financial results from capacity purchase agreements with
Mesa Airlines, Chautauqua Airlines, Air Wisconsin Airlines and Republic
Airlines.
Reconciliation of GAAP Financial Information to Non-GAAP Financial
Information and Operating Cost per ASM Excluding Special Items, Aircraft
Fuel, Realized Gain (Loss) on Fuel Hedging Instruments, Net - Mainline only
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 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 CASM excluding fuel and gain or loss on fuel hedging instruments
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.
3 Months 3 Months 9 Months 9 Months
Ended Ended Ended Ended
September September September September
30, 2007 30, 2006 30, 2007 30, 2006
(in millions, except share and per share
amounts)
Reconciliation of Income (loss)
before Cumulative Effect of
Change in Accounting Principle
Excluding Special Items for
US Airways Group, Inc.
Income (loss) before cumulative
effect of change in accounting
principle as reported $177 $(78) $506 $291
Special items:
Unrealized gain (loss) on fuel
hedging instruments, net (1) (13) 88 (128) 44
Non-cash tax provision from
utilization of pre-acquisition
NOL (2) 4 59 10 59
Special items, net (3) 17 27 83 18
Other operating special items (4) - - (9) -
Nonoperating special items (5) - 5 18 9
Income before cumulative effect of
change in accounting principle, as
adjusted for special items $185 $101 $480 $421
Shares used for computation (in
thousands):
Basic 91,542 88,212 91,461 85,286
Diluted 95,492 95,307 95,776 94,474
Income per share before cumulative
effect of change in accounting
principle, as adjusted for special
items:
Basic $2.02 $1.15 $5.25 $4.93
Diluted (6) $1.96 $1.09 $5.06 $4.57
3 Months 3 Months 9 Months 9 Months
Ended Ended Ended Ended
September September September September
30, 2007 30, 2006 30, 2007 30, 2006
Reconciliation of Operating Cost
per ASM Excluding Special Items,
Fuel, Realized Gain (Loss) on
Fuel Hedging Instruments, Net
- Mainline only
US Airways Group, Inc.
(in millions)
Total operating expenses $2,834 $2,952 $8,317 $8,288
Less Express expenses:
Fuel (199) (210) (539) (585)
Other (450) (443) (1,382) (1,345)
Total mainline operating expenses 2,185 2,299 6,396 6,358
Special items:
Unrealized gain (loss) on fuel
hedging instruments, net (1) 13 (88) 128 (44)
Special items, net (3) (17) (27) (83) (18)
Other operating special items (4) - - 9 -
Mainline operating expenses,
excluding special items 2,181 2,184 6,450 6,296
Aircraft fuel (692) (719) (1,900) (1,943)
Realized gain (loss) on fuel
hedging instruments, net 20 - (17) 12
Mainline operating expenses,
excluding special items, fuel and
realized gain (loss)
on fuel hedging instruments, net $1,509 $1,465 $4,533 $4,365
(in cents)
Mainline operating expenses per
ASM 11.11 11.40 11.07 10.96
Special items per ASM
Unrealized gain (loss) on fuel
hedging instruments, net (1) 0.07 (0.44) 0.22 (0.08)
Special items, net (3) (0.09) (0.13) (0.14) (0.03)
Other operating special
items (4) - - 0.02 -
Mainline operating expenses per
ASM, excluding special items 11.09 10.83 11.17 10.85
Aircraft fuel (3.52) (3.57) (3.29) (3.35)
Realized gain (loss) on fuel
hedging instruments, net 0.10 - (0.03) 0.02
Mainline operating expenses per
ASM, excluding special items, fuel
and realized gain (loss)
on fuel hedging instruments, net 7.68 7.26 7.85 7.52
Note: Amounts may not recalculate due to rounding.
Reconciliation of GAAP Financial Information to Non-GAAP Financial
Information and Operating Cost per ASM Excluding Special Items, Aircraft
Fuel, Realized Gain (Loss) on Fuel Hedging Instruments, Net - Mainline only
FOOTNOTES:
1) The 2007 third quarter and the 2007 nine month periods include $13
million and $128 million of unrealized gain, respectively. The 2006
third quarter and the 2006 nine month periods include $88 million and
$44 million of unrealized loss, resulting from mark-to-market
accounting for changes in the fair value of the Company's fuel hedging
instruments.
2) For the three months and nine months ended September 30, 2007, the
Company utilized $4 million and $10 million, respectively, of NOL
acquired from US Airways. The valuation allowance associated with the
acquired NOL was recognized as a reduction of goodwill rather than a
reduction in tax expense. As a result, US Airways had a non-cash
expense for income taxes of $4 million and $10 million, respectively,
in the three and nine months ended September 30, 2007. For the three
months and nine months ended September 30, 2006, the Company utilized
$59 million of NOL acquired from US Airways. Similar to 2007, this
resulted in a reduction of goodwill rather than a reduction in tax
expense. As a result, US Airways had a non-cash expense for income
taxes of $59 million in the three and nine months ended September 30,
2006.
3) The 2007 third quarter and nine month periods include $17 million and
$83 million, respectively, of merger related transition expenses. The
2006 third quarter includes $27 million of merger related transition
expenses. The 2006 nine month period includes a $90 million gain
associated with the return of equipment deposits upon forgiveness of a
loan, offset by $108 million of merger related transition expenses.
4) The 2007 nine month period includes $9 million of insurance settlement
proceeds related to business interruption and property damages incurred
as a result of Hurricane Katrina.
5) The 2007 nine month period includes a $18 million write-off of debt
issuance costs in connection with the refinancing of the $1.25 billion
GE debt. The 2006 third quarter includes $5 million payment in
connection with the inducement to convert $21 million of the 7% Senior
Convertible Notes to common stock. The 2006 nine month period includes
$6 million of prepayment penalties and a $5 million write-off of debt
issuance costs in connection with the refinancing of the loan
previously guaranteed by the ATSB and two loans previously provided to
AWA by GECC, a $5 million payment in connection with the inducement to
convert $21 million of the 7% Senior Convertible Notes to common stock
less $7 million of interest income earned by AWA on certain prior year
federal income tax refunds.
6) The 2007 EPS computation excludes interest associated with the 7.0%
senior convertible notes of $1 million and $4 million for the three and
nine month periods, respectively. The 2006 EPS computation excludes
interest associated with the 7.0% senior convertible notes of
$2 million and $7 million for the three and nine months ended September
30, 2006, respectively and the 7.5% convertible senior notes of
$4 million for the nine months ended September 30, 2006.
US Airways Group, Inc.
Condensed Consolidated Balance Sheets
(in millions)
(unaudited)
September 30, December 31,
2007 2006
Assets
Current assets
Cash, cash equivalents and
short-term investments 2,680 2,365
Restricted cash 2 1
Accounts receivable, net 494 388
Materials and supplies, net 256 223
Prepaid expenses and other 516 377
Total current assets 3,948 3,354
Property and equipment
Flight equipment 2,298 2,051
Ground property and equipment 672 598
Less accumulated depreciation and
amortization (714) (583)
2,256 2,066
Equipment purchase deposits 78 48
Total property and equipment 2,334 2,114
Other assets
Goodwill 619 629
Other intangibles, net 535 554
Restricted cash 449 666
Other assets 219 259
Total other assets 1,822 2,108
Total assets $8,104 $7,576
Liabilities and Stockholders' Equity
Current liabilities
Current maturities of debt and capital
leases 109 95
Accounts payable 391 454
Air traffic liability 944 847
Accrued compensation and vacation 214 262
Accrued taxes 132 181
Other accrued expenses 937 873
Total current liabilities 2,727 2,712
Noncurrent liabilities and deferred credits
Long-term debt and capital leases, net of
current maturities 2,980 2,907
Deferred gains and credits 177 205
Employment benefit liabilities and other 754 782
Total noncurrent liabilities and
deferred credits 3,911 3,894
Stockholders' equity
Common stock 1 1
Additional paid-in capital 1,529 1,501
Accumulated deficit (16) (522)
Treasury stock (13) (13)
Accumulated other comprehensive income
(loss) (35) 3
Total stockholders' equity 1,466 970
Total liabilities and stockholders' equity $8,104 $7,576
SOURCE US Airways Group, Inc.
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Related links:
http://www.usairways.com
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/20050223/LAW097LOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Daniel Cravens of US Airways Group, Inc.,
+1-480-693-5729
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