##### 



Exhibit
99.1
 
 
 FOR IMMEDIATE RELEASE
 US AIRWAYS GROUP, INC. REPORTS PROFITABLE
FIRST QUARTER 2006
  
    
    First quarter 2006 profit of $64 million or $0.75 per diluted share.
    
    Excluding special items, first quarter 2006 profit of $5 million or $0.05 per diluted
share.
    
    As of March 31, 2006, the Company had $2.6 billion in total cash and investments, of
which $1.6 billion was unrestricted.
   1




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##### 



Revenue and Cost Comparisons
   2




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##### 



Liquidity
  Summary of Integration Progress
  Operations
 
    
    Achieved the top ranking in on-time performance among all major airlines as reported by
the Department of Transportation (DOT) for the fourth quarter 2005 and the first quarter
2006.
    
    Consolidated operations at the 30 airports where both airlines operated prior to the
merger (seven airports remain to be integrated).
    
    Signed an amended agreement with Embraer, agreeing to place an initial firm order for
25 Embraer 190 aircraft and an additional firm order for 32 Embraer 190 aircraft with
options for up to 50 additional aircraft.
 Finance
 
    
    In April, completed a $1.25 billion refinancing, which was used to replace
approximately $1.1 billion of outstanding debt at lower interest rates and with an
extended amortization period.
    
    In April, announced redemption of approximately $112 million in principal amount of
America West Holdings Corporations 7.50 percent convertible senior notes due 2009. These
notes were converted into approximately 3.9 million shares of common stock.
    
    Combined all insurance programs for the new airline, which is anticipated to save an
additional $41 million annually.
 Marketing
 
    
    Added numerous fares in several east coast markets including Philadelphia, Charlotte,
Pittsburgh and New York/LaGuardia.
    
    Released new US Airways Vacations web site with improved functionality and eliminated
the America West Vacations brand.
    
    Established Dividend Miles as the new Companys frequent flyer program, and created
mechanisms for reciprocal benefits, accrual and redemption.
    
    Introduced a new affinity card with Barclays Bank.
    
    Announced three new European destinations, Lisbon, Milan and Stockholm, which will begin
service this summer.
    
    Integrated certain inflight services, including the inflight magazine, entertainment
and level-off and safety videos.
 Labor Relations
 
    
    Reached a Transition Agreement with the airlines pilots and flight attendants.
 3




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##### 




    
    Reached a Transition Agreement with a new labor alliance between the Communication
Workers Association and the International Brotherhood of Teamsters, which represents the
airlines customer service employees.
    
    Received single carrier certification by the National Mediation Board (NMB), and
recently received notice that the NMB will hold an election in order to achieve single
representation for the combined airlines fleet service workers.
    
    Recalled 55 furloughed US Airways pilots and up to 510 US Airways flight attendants.
    
    Began bringing some of the currently outsourced reservations work back in house by
increasing hiring in Winston-Salem, North Carolina and Reno, Nevada.
 Culture
 
    
    Paid out six consecutive monthly bonuses to employees below officer level for achieving
on-time performance goals in October 2005 through March 2006 (totaling approximately $10
million).
    
    Implemented new internal communication programs designed to ensure senior management
visibility among all areas of the combined airlines operation.
    
    Unveiled the first of five heritage planes that will feature throwback liveries of the
four major airlines that comprise the new US Airways (Allegheny, America West, Piedmont
and PSA).
    
    Began an aggressive leadership development training program that will ultimately touch
all leaders at US Airways Group.
 Analyst Conference Call/Webcast Details
 www.usairways.com www.americawest.com
  About US Airways
   4




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##### 



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, anticipate,
believe, estimate, plan, could, should, and continue and similar terms used in
connection with statements regarding the outlook of US Airways Group, Inc. (the Company), expected
fuel costs, the revenue and pricing environment, and expected financial performance. Such
statements include, but are not limited to, statements about the benefits of the business
combination transaction involving America West Holdings and US Airways Group, including future
financial and operating results, the combined companies plans, objectives, expectations and
intentions and other statements that are not historical facts. 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 these statements. Such risks and uncertainties include, but are not limited to,
the following: the ability of the Company to obtain and maintain any necessary financing for
operations and other purposes (including compliance with financial covenants); the ability of the
Company to maintain adequate liquidity; the impact of changes in fuel prices; the impact of
economic conditions; changes in prevailing interest rates; the ability to attract and retain
qualified personnel; the ability of the Company to attract and retain customers; the ability of the
Company to obtain and maintain commercially reasonable terms with vendors and service providers;
the cyclical nature of the airline industry; competitive practices in the industry, including
significant fare restructuring activities by major airlines; labor costs; security-related and
insurance costs; weather conditions; government legislation and regulation; relations with
unionized employees generally and the impact and outcome of the labor negotiations; the impact of
global instability including the potential impact of current and future hostilities, terrorist
attacks, infectious disease outbreaks or other global events; the impact of the resolution of
remaining claims in US Airways Groups Chapter 11 proceedings; the ability of the Company to fund
and execute its business plan following the Chapter 11 proceedings and the merger; and other risks
and uncertainties listed from time to time in the companies reports to the 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 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
Quarterly report on Form 10-Q for the quarter ended March 31, 2006 and in the filings of the
Company with the SEC, which are available at www.usairways.com and www.americawest.com.
 Financial Tables to Follow
 5




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##### 



US Airways Group, Inc.
Condensed Consolidated Statements of Operations
(in millions except share and per share amounts)
(unaudited)
 3 Months Ended
    
    
    3 Months EndedMarch 31, 2006
    
    
    March 31, 2005Operating revenuesMainline passenger
    
    $
    1,811
    
    
    $
    577Express passenger
    
    
    611
    
    
    
    103Cargo
    
    
    37
    
    
    
    9Other
    
    
    189
    
    
    
    44Total operating revenues
    
    
    2,648
    
    
    
    733Operating expensesAircraft fuel and related taxes
    
    
    555
    
    
    
    160Gain on fuel hedging instruments, net:Realized
    
    
    (2
    )
    
    
    (11
    )Unrealized
    
    
    (26
    )
    
    
    (49
    )Salaries and related costs
    
    
    503
    
    
    
    175Express expensesFuel
    
    
    172
    
    
    
    32Other
    
    
    443
    
    
    
    79Aircraft rent
    
    
    185
    
    
    
    77Aircraft maintenance
    
    
    141
    
    
    
    53Other rent and landing fees
    
    
    129
    
    
    
    42Selling expenses
    
    
    107
    
    
    
    36Special items, net
    
    
    (44
    )
    
    
    1Depreciation and amortization
    
    
    45
    
    
    
    12Other
    
    
    315
    
    
    
    81Total operating expenses
    
    
    2,523
    
    
    
    688Operating income
    
    
    125
    
    
    
    45Nonoperating income (expenses)Interest income
    
    
    26
    
    
    
    2Interest expense, net
    
    
    (75
    )
    
    
    (19
    )Other, net
    
    
    (12
    )
    
    
    Nonoperating expenses, net
    
    
    (61
    )
    
    
    (17
    )Income before income taxes and cumulative effect of change in accounting principle
    
    
    64
    
    
    
    28Income tax provision
    
    
    
    
    
    
    Income before cumulative effect of change in accounting principle
    
    
    64
    
    
    
    28Cumulative effect of change in accounting principle
    
    
    1
    
    
    
    (202
    )Net income (loss)
    
    $
    65
    
    
    $
    (174
    )Income per share before cumulative effect of change in accounting principle:Basic
    
    $
    0.79
    
    
    $
    1.90Diluted
    
    $
    0.75
    
    
    $
    1.29Net income (loss) per share:Basic
    
    $
    0.80
    
    
    $
    (11.70
    )Diluted
    
    $
    0.76
    
    
    $
    (6.58
    )Shares used for computation (in thousands):Basic
    
    
    81,679
    
    
    
    14,849Diluted
    
    
    93,362
    
    
    
    25,666
 6




---



##### 



3 Months Ended
    
    
    3 Months EndedMarch 31, 2006
    
    
    March 31, 2005MainlineRevenue passenger miles (in millions)
    
    
    13,956
    
    
    
    5,671Available seat miles (ASM) (in millions)
    
    
    18,230
    
    
    
    7,301Passenger load factor (percent)
    
    
    76.6
    
    
    
    77.7Yield (cents)
    
    
    12.97
    
    
    
    10.18Passenger revenue per ASM (cents)
    
    
    9.93
    
    
    
    7.90Passenger enplanements (in thousands)
    
    
    13,591
    
    
    
    5,172Aircraft (end of period)
    
    
    367
    
    
    
    138Operating cost per ASM (cents)
    
    
    10.47
    
    
    
    7.90Operating cost per ASM excluding special items (cents)
    
    
    10.85
    
    
    
    8.51Operating cost per ASM excluding special items, aircraft fuel
and realized gains on fuel hedging instruments, net (cents)
    
    
    7.82
    
    
    
    6.47ExpressRevenue passenger miles (in millions)
    
    
    2,431
    
    
    
    699Available seat miles (in millions)
    
    
    3,659
    
    
    
    981Passenger load factor (percent)
    
    
    66.4
    
    
    
    71.3Passenger revenue per ASM (cents)
    
    
    16.71
    
    
    
    10.54Operating cost per ASM (cents)
    
    
    16.82
    
    
    
    11.31Operating cost per ASM excluding aircraft fuel (cents)
    
    
    12.12
    
    
    
    8.02TOTAL  Mainline & ExpressRevenue passenger miles (in millions)
    
    
    16,387
    
    
    
    6,370Available seat miles (in millions)
    
    
    21,889
    
    
    
    8,282Passenger load factor (percent)
    
    
    74.9
    
    
    
    76.9Passenger revenue per ASM (cents)
    
    
    11.06
    
    
    
    8.22Total revenue per ASM (cents)
    
    
    12.10
    
    
    
    8.84Operating cost per ASM (cents)
    
    
    11.53
    
    
    
    8.30
  7




---



##### 



Reconciliation of GAAP Financial Information to Non-GAAP Financial Information
and Operating Cost per ASM Excluding Special Items, Aircraft Fuel, Realized
Gains on Fuel Hedging instruments, Net  Mainline only
  3 Months Ended
    
    
    3 Months EndedMarch 31, 2006
    
    
    March 31, 2005(in millions)Reconciliation of Income before Cumulative Effect of Change in Accounting Principle
Excluding Special items for US Airways Group, Inc.Income before cumulative effect of change in accounting principle as reported
    
    $
    64
    
    
    $
    28Special itemsUnrealized gains on fuel hedging instruments, net (1)
    
    
    (26
    )
    
    
    (49
    )Special items, net (2)
    
    
    (44
    )
    
    
    1Other special charges (3) (6)
    
    
    11
    
    
    
    4Income (loss) before cumulative effect of change in accounting principle, as adjusted for special items
    
    $
    5
    
    
    $
    (16
    )Weighted average common shares outstanding (in thousands):Basic
    
    
    81,679
    
    
    
    14,849Diluted
    
    
    83,542
    
    
    
    14,849Income (loss) per share before cumulative effect of change in accounting principle,
as adjusted for special itemsBasic
    
    $
    0.06
    
    
    $
    (1.09
    )Diluted
    
    $
    0.05
    
    
    $
    (1.09
    )Reconciliation of Income before Cumulative Effect of Change in Accounting
Principle Excluding Special items for America West Airlines, Inc.Income before cumulative effect of change in accounting principle as reported
    
    $
    57
    
    
    $
    29Special items:Unrealized gains on fuel hedging instruments, net (1)
    
    
    (26
    )
    
    
    (49
    )Special items, net (4)
    
    
    (30
    )
    
    
    1Other special charges (3) (6)
    
    
    11
    
    
    
    4Income (loss) before cumulative effect of change in accounting principle, as adjusted for special items
    
    $
    12
    
    
    $
    (15
    )Reconciliation of Net Income (Loss) Excluding Special items for US Airways, Inc.Net income (loss) as reported
    
    $
    
    
    
    $
    (259
    )Special items:Special items, net (5)
    
    
    (15
    )
    
    
    Reorganization items, net (7)
    
    
    
    
    
    
    2Net loss, as adjusted for special items
    
    $
    (15
    )
    
    $
    (257
    )
 8




---



##### 



Reconciliation of GAAP Financial Information to Non-GAAP Financial Information
and Operating Cost per ASM Excluding Special Items, Aircraft Fuel, Realized
Gains on Fuel Hedging instruments, Net  Mainline only
 3 Months Ended
    
    
    3 Months EndedMarch 31, 2006
    
    
    March 31, 2005Reconciliation of Operating Cost per ASM Excluding Special Items, Fuel, Realized
Gains on Fuel Hedging instruments, Net  Mainline onlyUS Airways Group, Inc.(in millions)Total operating expenses
    
    $
    2,523
    
    
    $
    688Less Express expenses:Fuel
    
    
    (172
    )
    
    
    (32
    )Other
    
    
    (443
    )
    
    
    (79
    )Total mainline operating expenses
    
    
    1,908
    
    
    
    577Special itemsUnrealized gains on fuel hedging instruments, net (1)
    
    
    26
    
    
    
    49Special items, net (2)
    
    
    44
    
    
    
    (1
    )Other special charges (6)
    
    
    
    
    
    
    (4
    )Mainline operating expenses, excluding special items
    
    
    1,978
    
    
    
    621Aircraft fuel
    
    
    (555
    )
    
    
    (160
    )Realized gains on fuel hedging instruments, net
    
    
    2
    
    
    
    11Mainline operating expenses, excluding special items,
aircraft fuel and realized gains
on fuel hedging instruments, net
    
    $
    1,425
    
    
    $
    472(in cents)Mainline operating expenses per ASM
    
    
    10.47
    
    
    
    7.90Special items per ASMUnrealized gains on fuel hedging instruments, net (1)
    
    
    0.14
    
    
    
    0.67Special items, net (2)
    
    
    0.24
    
    
    
    (0.01
    )Other special charges (6)
    
    
    
    
    
    
    (0.05
    )Mainline operating expenses per ASM, excluding special items
    
    
    10.85
    
    
    
    8.51Aircraft fuel
    
    
    (3.04
    )
    
    
    (2.19
    )Realized gains on fuel hedging instruments, net
    
    
    0.01
    
    
    
    0.15Mainline operating expenses per ASM, excluding
special items, aircraft fuel and realized gains
on fuel hedging instruments, net
    
    
    7.82
    
    
    
    6.47
 9




---



##### 



Reconciliation of GAAP Financial Information to Non-GAAP Financial Information
and Operating Cost per ASM Excluding Special Items, Aircraft Fuel, Realized
Gains on Fuel Hedging instruments, Net  Mainline only
 3 Months Ended
    
    
    3 Months EndedMarch 31, 2006
    
    
    March 31, 2005America West Airlines Inc.(in millions)Total operating expenses
    
    $
    776
    
    
    $
    687Less Express expenses:Fuel
    
    
    (46
    )
    
    
    (32
    )Other
    
    
    (99
    )
    
    
    (79
    )Total mainline operating expenses
    
    
    631
    
    
    
    576Special items:Unrealized gains on fuel hedging instruments, net (1)
    
    
    26
    
    
    
    49Special items, net (4)
    
    
    30
    
    
    
    (1
    )Other special charges (6)
    
    
    
    
    
    
    (4
    )Mainline operating expenses, excluding special items
    
    
    687
    
    
    
    620Aircraft fuel
    
    
    (205
    )
    
    
    (160
    )Realized gains on fuel hedging instruments, net
    
    
    2
    
    
    
    11Mainline operating expenses, excluding special
items, aircraft fuel and realized gains
on fuel hedging instruments, net
    
    $
    484
    
    
    $
    471(in cents)Mainline Operating expenses per ASM
    
    
    8.76
    
    
    
    7.88Special items per ASM:Unrealized gains on fuel hedging instruments, net (1)
    
    
    0.36
    
    
    
    0.67Special items, net (4)
    
    
    0.42
    
    
    
    (0.01
    )Other special charges (6)
    
    
    
    
    
    
    (0.05
    )Mainline operating expenses per ASM, excluding special items
    
    
    9.54
    
    
    
    8.49Aircraft fuel
    
    
    (2.85
    )
    
    
    (2.19
    )Realized gains on fuel hedging instruments, net
    
    
    0.03
    
    
    
    0.15Mainline operating expenses per ASM, excluding
special items, aircraft fuel and realized gains
on fuel hedging instruments, net
    
    
    6.72
    
    
    
    6.45US Airways, Inc.(in millions)Total operating expenses
    
    $
    1,761
    
    
    $
    1,804Less: Express expenses
    
    
    (499
    )
    
    
    (419
    )Total mainline operating expenses
    
    
    1,262
    
    
    
    1,385Special items:Special items, net (5)
    
    
    15
    
    
    
    Mainline operating expenses, excluding special items
    
    
    1,277
    
    
    
    1,385Aircraft fuel
    
    
    (349
    )
    
    
    (321
    )Mainline operating expenses, excluding special items and aircraft fuel
    
    $
    928
    
    
    $
    1,064(in cents)Mainline operating expenses per ASM (excluding Express expenses)
    
    
    11.44
    
    
    
    10.51Special items per ASM:Special items, net (5)
    
    
    0.14
    
    
    
    Mainline operating expenses per ASM, excluding special items
    
    
    11.58
    
    
    
    10.51Aircraft fuel
    
    
    (3.16
    )
    
    
    (2.44
    )Mainline operating expenses per ASM excluding special items and aircraft fuel
    
    
    8.42
    
    
    
    8.07
 Note:
Amounts may not recalculate due to rounding.
 10




---



##### 



Reconciliation of GAAP Financial Information to Non-GAAP Financial Information
and Operating Cost per ASM Excluding Special Items, Aircraft Fuel, Realized
Gains on Fuel Hedging instruments, Net  Mainline only
 FOOTNOTES:
        11




---



##### 



America West Airlines, Inc.
Consolidated Statements of Operations
(in millions)
(unaudited)
 3 Months Ended
    
    
    3 Months Ended
    
    
    PercentMarch 31, 2006
    
    
    March 31, 2005
    
    
    ChangeOperating revenuesMainline passenger
    
    $
    652
    
    
    $
    577
    
    
    
    13.0Express passenger
    
    
    153
    
    
    
    103
    
    
    
    48.5Cargo
    
    
    9
    
    
    
    9
    
    
    
    Other
    
    
    45
    
    
    
    44
    
    
    
    2.3Total operating revenues
    
    
    859
    
    
    
    733
    
    
    
    17.2Operating expensesAircraft fuel and related taxes
    
    
    205
    
    
    
    160
    
    
    
    28.1Gain on fuel hedging instruments, net:Realized
    
    
    (2
    )
    
    
    (11
    )
    
    
    (81.8
    )Unrealized
    
    
    (26
    )
    
    
    (49
    )
    
    
    (46.9
    )Salaries and related costs
    
    
    174
    
    
    
    175
    
    
    
    (0.6
    )Express expensesFuel
    
    
    46
    
    
    
    32
    
    
    
    43.8Other
    
    
    99
    
    
    
    79
    
    
    
    25.3Aircraft rent
    
    
    86
    
    
    
    77
    
    
    
    11.7Aircraft maintenance
    
    
    52
    
    
    
    53
    
    
    
    (1.9
    )Other rent and landing fees
    
    
    45
    
    
    
    42
    
    
    
    7.1Selling expenses
    
    
    39
    
    
    
    36
    
    
    
    8.3Special items, net
    
    
    (30
    )
    
    
    1
    
    
    
    Depreciation and amortization
    
    
    11
    
    
    
    12
    
    
    
    (8.3
    )Other
    
    
    77
    
    
    
    80
    
    
    
    (3.8
    )Total operating expenses
    
    
    776
    
    
    
    687
    
    
    
    13.0Operating income
    
    
    83
    
    
    
    46
    
    
    
    80.4Nonoperating income (expenses)Interest income
    
    
    13
    
    
    
    3
    
    
    
    Interest expense, net
    
    
    (28
    )
    
    
    (21
    )
    
    
    33.3Other, net
    
    
    (11
    )
    
    
    1
    
    
    
    Nonoperating expenses, net
    
    
    (26
    )
    
    
    (17
    )
    
    
    52.9Income before income taxes and cumulative effect of change of accounting principle
    
    
    57
    
    
    
    29
    
    
    
    96.6Income taxes
    
    
    
    
    
    
    
    
    
    
    Income before cumulative effect of change in accounting principle
    
    
    57
    
    
    
    29
    
    
    
    96.6Cumulative effect of change in accounting principle
    
    
    1
    
    
    
    (202
    )
    
    
    Net income (loss)
    
    $
    58
    
    
    $
    (173
    )
    
    
    
 12




---



##### 



America West Airlines, Inc.
Operating Statistics
 3 Months Ended
    
    
    3 Months Ended
    
    
    PercentMarch 31, 2006
    
    
    March 31, 2005
    
    
    ChangeMainlineRevenue passenger miles (in millions)
    
    
    5,660
    
    
    
    5,671
    
    
    
    (0.2
    )Available seat miles (ASM) (in millions)
    
    
    7,199
    
    
    
    7,301
    
    
    
    (1.4
    )Passenger load factor (percent)
    
    
    78.6
    
    
    
    77.7
    
    
    
    0.9
    ptsYield (cents)
    
    
    11.52
    
    
    
    10.18
    
    
    
    13.2Passenger revenue per ASM (cents)
    
    
    9.05
    
    
    
    7.90
    
    
    
    14.6Passenger enplanements (in thousands)
    
    
    5,091
    
    
    
    5,172
    
    
    
    (1.6
    )Aircraft (end of period)
    
    
    143
    
    
    
    138
    
    
    
    3.6Block hours
    
    
    133,970
    
    
    
    136,497
    
    
    
    (1.9
    )Average stage length (miles)
    
    
    1,027
    
    
    
    1,022
    
    
    
    0.5Average passenger journey (miles)
    
    
    1,578
    
    
    
    1,624
    
    
    
    (2.8
    )Fuel consumption (gallons in millions)
    
    
    105.2
    
    
    
    107.2
    
    
    
    (1.9
    )Average fuel price (dollars per gallon)
    
    
    1.95
    
    
    
    1.42
    
    
    
    37.3Average fuel price including realized gains on fuel hedging
instruments, net (dollars)
    
    
    1.93
    
    
    
    1.39
    
    
    
    38.8Full-time equivalent employees (end of period)
    
    
    12,828
    
    
    
    12,417
    
    
    
    3.3Operating cost per ASM (cents)
    
    
    8.76
    
    
    
    7.88
    
    
    
    11.2Operating cost per ASM excluding special items (cents)
    
    
    9.54
    
    
    
    8.49
    
    
    
    12.4Operating cost per ASM excluding special items, fuel and
realized gains on fuel hedging instruments, net (cents)
    
    
    6.72
    
    
    
    6.45
    
    
    
    4.2ExpressRevenue passenger miles (in millions)
    
    
    847
    
    
    
    699
    
    
    
    21.2Available seat miles (in millions)
    
    
    1,167
    
    
    
    981
    
    
    
    19.0Passenger load factor (percent)
    
    
    72.6
    
    
    
    71.3
    
    
    
    1.3
    ptsPassenger revenue per ASM (cents)
    
    
    13.14
    
    
    
    10.54
    
    
    
    24.7Passenger enplanements (in thousands)
    
    
    1,639
    
    
    
    1,199
    
    
    
    36.7Operating cost per ASM (cents)
    
    
    12.45
    
    
    
    11.32
    
    
    
    10.0TotalRevenue passenger miles (in millions)
    
    
    6,507
    
    
    
    6,370
    
    
    
    2.2Available seat miles (in millions)
    
    
    8,366
    
    
    
    8,282
    
    
    
    1.0Passenger load factor (percent)
    
    
    77.8
    
    
    
    76.9
    
    
    
    0.9
    ptsTotal revenue per ASM (cents)
    
    
    10.27
    
    
    
    8.84
    
    
    
    16.2Passenger enplanements (in thousands)
    
    
    6,730
    
    
    
    6,371
    
    
    
    5.6Operating cost per ASM (cents)
    
    
    9.28
    
    
    
    8.29
    
    
    
    11.9
 13




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##### 



US Airways, Inc.
Statements of Operations
(in millions)
(unaudited)
 Successor Company
    
    
    Predecessor Company3 Months Ended
    
    
    3 Months Ended
    
    
    PercentMarch 31, 2006
    
    
    March 31, 2005
    
    
    ChangeOperating revenuesMainline passenger
    
    $
    1,159
    
    
    $
    1,133
    
    
    
    2.3Express passenger
    
    
    458
    
    
    
    314
    
    
    
    45.9Cargo
    
    
    29
    
    
    
    21
    
    
    
    38.1Other
    
    
    158
    
    
    
    154
    
    
    
    2.6Total operating revenues
    
    
    1,804
    
    
    
    1,622
    
    
    
    11.2Operating expensesAircraft fuel and related taxes
    
    
    349
    
    
    
    321
    
    
    
    8.7Salaries and related costs
    
    
    329
    
    
    
    408
    
    
    
    (19.4
    )Express expenses
    
    
    499
    
    
    
    419
    
    
    
    19.1Aircraft rent
    
    
    99
    
    
    
    98
    
    
    
    1.0Aircraft maintenance
    
    
    90
    
    
    
    72
    
    
    
    25.0Other rent and landing fees
    
    
    84
    
    
    
    89
    
    
    
    (5.6
    )Selling expenses
    
    
    67
    
    
    
    93
    
    
    
    (28.0
    )Special items, net
    
    
    (15
    )
    
    
    
    
    
    
    Depreciation and amortization
    
    
    36
    
    
    
    50
    
    
    
    (28.0
    )Other
    
    
    223
    
    
    
    254
    
    
    
    (12.2
    )Total operating expenses
    
    
    1,761
    
    
    
    1,804
    
    
    
    (2.4
    )Operating income (loss)
    
    
    43
    
    
    
    (182
    )
    
    
    Nonoperating income (expenses)Interest income
    
    
    14
    
    
    
    3
    
    
    
    Interest expense, net
    
    
    (55
    )
    
    
    (75
    )
    
    
    (26.7
    )Reorganization items, net
    
    
    
    
    
    
    (2
    )
    
    
    Other, net
    
    
    (2
    )
    
    
    (3
    )
    
    
    (33.3
    )Total nonoperating expenses, net
    
    
    (43
    )
    
    
    (77
    )
    
    
    (44.2
    )Income (loss) before income taxes
    
    
    
    
    
    
    (259
    )
    
    
    Income tax provision
    
    
    
    
    
    
    
    
    
    
    Net income (loss)
    
    $
    
    
    
    $
    (259
    )
    
    
    
 14




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##### 



US Airways, Inc.
Operating Statistics
 3 Months Ended
    
    
    3 Months Ended
    
    
    PercentMarch 31, 2006
    
    
    March 31, 2005
    
    
    ChangeMainlineRevenue passenger miles (in millions)
    
    
    8,296
    
    
    
    9,646
    
    
    
    (14.0
    )Available seat miles (ASM) (in millions)
    
    
    11,031
    
    
    
    13,186
    
    
    
    (16.3
    )Passenger load factor (percent)
    
    
    75.2
    
    
    
    73.2
    
    
    
    2.0
    ptsYield (cents)
    
    
    13.97
    
    
    
    11.74
    
    
    
    19.0Passenger revenue per ASM (cents)
    
    
    10.50
    
    
    
    8.59
    
    
    
    22.2Passenger enplanements (in thousands)
    
    
    8,500
    
    
    
    10,253
    
    
    
    (17.1
    )Aircraft (end of period)
    
    
    224
    
    
    
    279
    
    
    
    (19.7
    )Block hours
    
    
    192,921
    
    
    
    247,053
    
    
    
    (21.9
    )Average stage length (miles)
    
    
    827
    
    
    
    780
    
    
    
    6.0Average passenger journey (miles)
    
    
    976
    
    
    
    941
    
    
    
    3.7Fuel consumption (gallons in millions)
    
    
    182.3
    
    
    
    218.2
    
    
    
    (16.5
    )Average fuel price (dollars per gallon) with related taxes
    
    
    1.92
    
    
    
    1.47
    
    
    
    30.6Full-time equivalent employees (end of period)
    
    
    19,255
    
    
    
    23,696
    
    
    
    (18.7
    )Operating cost per ASM (cents)
    
    
    11.44
    
    
    
    10.51
    
    
    
    8.8Operating cost per ASM excluding special items(cents)
    
    
    11.58
    
    
    
    10.51
    
    
    
    10.2Operating cost per ASM excluding special items and fuel (cents)
    
    
    8.42
    
    
    
    8.07
    
    
    
    4.3ExpressRevenue passenger miles (in millions)
    
    
    1,584
    
    
    
    1,402
    
    
    
    13.0Available seat miles (in millions)
    
    
    2,492
    
    
    
    2,334
    
    
    
    6.8Passenger load factor (percent)
    
    
    63.6
    
    
    
    60.1
    
    
    
    3.5
    ptsPassenger revenue per ASM (cents)
    
    
    18.38
    
    
    
    13.45
    
    
    
    36.7Passenger enplanements (in thousands)
    
    
    4,269
    
    
    
    3,815
    
    
    
    11.9Operating cost per ASM (cents)
    
    
    20.02
    
    
    
    17.95
    
    
    
    11.5TOTAL  Mainline & ExpressRevenue passenger miles (in millions)
    
    
    9,880
    
    
    
    11,048
    
    
    
    (10.6
    )Available seat miles (in millions)
    
    
    13,523
    
    
    
    15,520
    
    
    
    (12.9
    )Passenger load factor (percent)
    
    
    73.1
    
    
    
    71.2
    
    
    
    1.9
    ptsTotal revenue per ASM (cents)
    
    
    13.34
    
    
    
    10.45
    
    
    
    27.7Operating cost per ASM (cents)
    
    
    13.02
    
    
    
    11.62
    
    
    
    12.0
 15




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##### 



US Airways Group, Inc.
Condensed Consolidated Balance Sheets
(in millions)
(unaudited)
 March 31, 2006
    
    
    December 31, 2005AssetsCurrent assetsCash equivalents and short-term investments
    
    $
    1,598
    
    
    $
    1,577Restricted cash
    
    
    5
    
    
    
    8Accounts receivable, net
    
    
    495
    
    
    
    353Materials and supplies, net
    
    
    223
    
    
    
    229Prepaid expenses and other
    
    
    477
    
    
    
    392Total current assets
    
    
    2,798
    
    
    
    2,559Property and equipment, netFlight equipment
    
    
    1,991
    
    
    
    1,920Ground property and equipment
    
    
    539
    
    
    
    532Less accumulated depreciation and amortization
    
    
    (467
    )
    
    
    (431
    )2,063
    
    
    
    2,021Equipment purchase deposits
    
    
    40
    
    
    
    43Total property and equipment
    
    
    2,103
    
    
    
    2,064Other assetsGoodwill
    
    
    702
    
    
    
    732Other intangibles, net
    
    
    575
    
    
    
    583Restricted cash
    
    
    1,007
    
    
    
    792Other assets
    
    
    235
    
    
    
    234Total other assets
    
    
    2,519
    
    
    
    2,341Total assets
    
    $
    7,420
    
    
    $
    6,964Liabilities and Stockholders EquityCurrent liabilitiesCurrent maturities of debt and capital leases
    
    $
    124
    
    
    $
    211Accounts payable
    
    
    535
    
    
    
    530Air traffic liability
    
    
    1,243
    
    
    
    788Accrued compensation and vacation
    
    
    178
    
    
    
    209Accrued taxes
    
    
    240
    
    
    
    171Other accrued expenses
    
    
    664
    
    
    
    750Total current liabilities
    
    
    2,984
    
    
    
    2,659Noncurrent liabilities and deferred creditsLong-term debt and capital leases, net of current maturities
    
    
    2,843
    
    
    
    2,749Deferred gains and credits
    
    
    227
    
    
    
    254Employment benefit liabilities and other
    
    
    869
    
    
    
    882Total noncurrent liabilities and deferred credits
    
    
    3,939
    
    
    
    3,885Stockholders equityPreferred stock
    
    
    
    
    
    
    Common stock
    
    
    1
    
    
    
    1Additional paid-in capital
    
    
    1,270
    
    
    
    1,258Accumulated deficit
    
    
    (761
    )
    
    
    (826
    )Treasury stock
    
    
    (13
    )
    
    
    (13
    )Total stockholders equity
    
    
    497
    
    
    
    420Total liabilities and stockholders equity
    
    $
    7,420
    
    
    $
    6,964
 16