##### 



Exhibit 99.1
 
 
 FOR IMMEDIATE RELEASE
 US AIRWAYS GROUP, INC. REPORTS
SECOND QUARTER PROFIT OF $305 MILLION
  
    
    Second quarter 2006 profit of $305 million or $3.25 per diluted share.
    
    Excluding special items, second quarter 2006 profit of $315 million or $3.35 per
diluted share.
    
    The Company accrued $36 million, or 10 percent of its combined first and second quarter
2006 pre tax income excluding special items, for its annual employee profit sharing plan.
    
    The Company had $3.2 billion in total cash and investments, of which $2.2 billion was
unrestricted, on June 30, 2006.
   Page 1 of 5




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Revenue and Cost Comparisons
    Page 2 of 5




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Liquidity
  Summary of Integration Progress
  Operations
 
    
    Continued to achieve near the top rankings in arrivals as measured by the Department of
Transportation (DOT); the new US Airways ranks second among its peer airlines for
year-to-date arrivals with 78.9 percent of flights arriving within 14 minutes of their
scheduled arrival time.
    
    Improved baggage handling by 50 percent on a year over year basis.
    
    Consolidated operations at all but four airports where both airlines operated prior to
the merger.
    
    Remained on track to merge its two operating certificates onto one operating
certificate during the second quarter 2007.
 Finance
 
    
    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.
    
    Completed the conversion of approximately $112 million in principal amount of America
West Holdings Corporations 7.5 percent convertible senior notes due in 2009, which
lowered the airlines annual interest expenses by $8.4 million.
 Marketing
 
    
    Launched the combined airlines new Web site, usairways.com. The new site integrates
the former americawest.com and increases overall functionality.
    
    Merged the former America West frequent flyer program, FlightFund, into US Airways
frequent flyer program, Dividend Miles, to create one consolidated program that allows
customers to more easily earn and redeem miles across the airlines network and the Star
Alliance.
 Labor Relations
 
    
    Reached a final agreement with the Airline Customer Service Employee Association, an
alliance between the Communication Workers of America (CWA) and the International
Brotherhood of Teamsters (IBT), the two unions that
 Page 3 of 5




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represent the airlines 7,700 passenger service employees and reservation agents.
    
    Received notification from the International Brotherhood of Teamsters (IBT) and
Transport Workers Union (TWU) that both unions had reached an agreement resulting in IBT
representation of the combined carriers fleet service workers.
 Culture
 
    
    Conducted and reported results from the first employee survey for the new US Airways,
which included building follow up plans for improving communication and leadership.
    
    Unveiled the third and fourth heritage planes (Piedmont and Allegheny) that will
feature throwback liveries of the four major airlines that comprise the new US Airways
(Allegheny, America West, Piedmont and PSA).
 Analyst Conference Call/Webcast Details
 
 www.usairways.com).
 About US Airways
  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
 Page 4 of 5




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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 June 30, 2006 and in the filings of
the Company with the SEC, which are available at www.usairways.com .
 Financial Tables to Follow
 Page 5 of 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 Ended
    
    
    6 Months Ended
    
    
    6 Months EndedJune 30, 2006
    
    
    June 30, 2005
    
    
    June 30, 2006
    
    
    June 30, 2005Operating revenuesMainline passenger
    
    $
    2,186
    
    
    $
    657
    
    
    $
    3,996
    
    
    $
    1,234Express passenger
    
    
    780
    
    
    
    129
    
    
    
    1,392
    
    
    
    233Cargo
    
    
    37
    
    
    
    8
    
    
    
    74
    
    
    
    17Other
    
    
    188
    
    
    
    51
    
    
    
    378
    
    
    
    96Total operating revenues
    
    
    3,191
    
    
    
    845
    
    
    
    5,840
    
    
    
    1,580Operating expensesAircraft fuel and related taxes
    
    
    669
    
    
    
    199
    
    
    
    1,223
    
    
    
    359Gain on fuel hedging
instruments, net:Realized
    
    
    (11
    )
    
    
    (12
    )
    
    
    (12
    )
    
    
    (23
    )Unrealized
    
    
    (18
    )
    
    
    3
    
    
    
    (44
    )
    
    
    (46
    )Salaries and related costs
    
    
    542
    
    
    
    174
    
    
    
    1,045
    
    
    
    349Express expensesFuel
    
    
    203
    
    
    
    44
    
    
    
    375
    
    
    
    77Other
    
    
    457
    
    
    
    92
    
    
    
    901
    
    
    
    170Aircraft rent
    
    
    180
    
    
    
    81
    
    
    
    365
    
    
    
    158Aircraft maintenance
    
    
    153
    
    
    
    66
    
    
    
    291
    
    
    
    120Other rent and landing fees
    
    
    145
    
    
    
    46
    
    
    
    285
    
    
    
    87Selling expenses
    
    
    121
    
    
    
    44
    
    
    
    228
    
    
    
    81Special items, net
    
    
    35
    
    
    
    
    
    
    
    (9
    )
    
    
    1Depreciation and amortization
    
    
    45
    
    
    
    12
    
    
    
    90
    
    
    
    23Other
    
    
    328
    
    
    
    83
    
    
    
    635
    
    
    
    166Total operating expenses
    
    
    2,849
    
    
    
    832
    
    
    
    5,373
    
    
    
    1,522Operating income
    
    
    342
    
    
    
    13
    
    
    
    467
    
    
    
    58Nonoperating income (expenses)Interest income
    
    
    41
    
    
    
    2
    
    
    
    66
    
    
    
    4Interest expense, net
    
    
    (72
    )
    
    
    (20
    )
    
    
    (147
    )
    
    
    (39
    )Other, net
    
    
    
    
    
    
    2
    
    
    
    (11
    )
    
    
    2Nonoperating expenses, net
    
    
    (31
    )
    
    
    (16
    )
    
    
    (92
    )
    
    
    (33
    )Income before income taxes and
cumulative effect of change in
accounting principle
    
    
    311
    
    
    
    (3
    )
    
    
    375
    
    
    
    25Income tax provision
    
    
    6
    
    
    
    
    
    
    
    6
    
    
    
    Income before cumulative effect of
change in accounting principle
    
    
    305
    
    
    
    (3
    )
    
    
    369
    
    
    
    25Cumulative effect of change in
accounting principle
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    (202
    )Net income (loss)
    
    $
    305
    
    
    $
    (3
    )
    
    $
    370
    
    
    $
    (177
    )Income (loss) per share before
cumulative effect of change in
accounting principle:Basic
    
    $
    3.55
    
    
    $
    (0.20
    )
    
    $
    4.40
    
    
    $
    1.70Diluted
    
    $
    3.25
    
    
    $
    (0.20
    )
    
    $
    4.02
    
    
    $
    1.31Net income (loss) per share:Basic
    
    $
    3.55
    
    
    $
    (0.20
    )
    
    $
    4.41
    
    
    $
    (11.89
    )Diluted
    
    $
    3.25
    
    
    $
    (0.20
    )
    
    $
    4.03
    
    
    $
    (7.89
    )Shares used for computation
(in thousands):Basic
    
    
    85,886
    
    
    
    14,863
    
    
    
    83,794
    
    
    
    14,856Diluted
    
    
    94,673
    
    
    
    14,863
    
    
    
    94,012
    
    
    
    21,943




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##### 



US Airways Group, Inc.
Operating Statistics
 3 Months Ended
    
    3 Months Ended
    
    6 months Ended
    
    6 months EndedJune 30, 2006
    
    June 30, 2005
    
    June 30, 2006
    
    June 30, 2005MainlineRevenue passenger miles (in millions)
    
    
    16,148
    
    
    
    6,386
    
    
    
    30,104
    
    
    
    12,057Available seat miles (ASM) (in millions)
    
    
    19,635
    
    
    
    7,755
    
    
    
    37,864
    
    
    
    15,057Passenger load factor (percent)
    
    
    82.2
    
    
    
    82.3
    
    
    
    79.5
    
    
    
    80.1Yield (cents)
    
    
    13.5
    
    
    
    10.29
    
    
    
    13.27
    
    
    
    10.23Passenger revenue per ASM (cents)
    
    
    11.13
    
    
    
    8.47
    
    
    
    10.55
    
    
    
    8.20Passenger enplanements (in thousands)
    
    
    15,171
    
    
    
    5,752
    
    
    
    28,763
    
    
    
    10,924Aircraft (end of period)
    
    
    359
    
    
    
    143
    
    
    
    359
    
    
    
    143Operating cost per ASM (cents)
    
    
    11.15
    
    
    
    8.97
    
    
    
    10.82
    
    
    
    8.47Operating cost per ASM excluding special items (cents)
    
    
    11.06
    
    
    
    8.88
    
    
    
    10.96
    
    
    
    8.71Operating cost per ASM excluding special items, aircraft fuel
and realized gains on fuel hedging instruments,
net (cents)
    
    
    7.71
    
    
    
    6.47
    
    
    
    7.76
    
    
    
    6.48ExpressRevenue passenger miles (in millions)
    
    
    2,918
    
    
    
    875
    
    
    
    5,349
    
    
    
    1,574Available seat miles (in millions)
    
    
    3,770
    
    
    
    1,225
    
    
    
    7,429
    
    
    
    2,206Passenger load factor (percent)
    
    
    77.4
    
    
    
    71.4
    
    
    
    72.0
    
    
    
    71.4Passenger revenue per ASM (cents)
    
    
    20.69
    
    
    
    10.53
    
    
    
    18.74
    
    
    
    10.56Operating cost per ASM (cents)
    
    
    17.51
    
    
    
    11.10
    
    
    
    17.18
    
    
    
    11.20Operating cost per ASM excluding aircraft fuel (cents)
    
    
    12.12
    
    
    
    7.51
    
    
    
    12.13
    
    
    
    7.71TOTAL
 Mainline & ExpressRevenue passenger miles (in millions)
    
    
    19,066
    
    
    
    7,261
    
    
    
    35,453
    
    
    
    13,631Available seat miles (in millions)
    
    
    23,405
    
    
    
    8,980
    
    
    
    45,293
    
    
    
    17,263Passenger load factor (percent)
    
    
    81.5
    
    
    
    80.9
    
    
    
    78.3
    
    
    
    79.0Passenger revenue per ASM (cents)
    
    
    12.67
    
    
    
    8.75
    
    
    
    11.90
    
    
    
    8.50Total revenue per ASM (cents)
    
    
    13.63
    
    
    
    9.41
    
    
    
    12.89
    
    
    
    9.15Operating cost per ASM (cents)
    
    
    12.17
    
    
    
    9.27
    
    
    
    11.86
    
    
    
    8.82
 
 ***
    
    Express includes US Airways Groups wholly owned regional airline subsidiaries,
Piedmont Airlines and PSA Airlines, US Airways MidAtlantic regional jet division
as well as operating and financial results from capacity purchases agreements with Mesa
Airlines, Chautauqua Airlines, Air Wisconsin Airlines and Republic Airlines.




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##### 



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 Ended
    
    
    6 Months Ended
    
    
    6 Months EndedJune 30, 2006
    
    
    June 30, 2005
    
    
    June 30, 2006
    
    
    June 30, 2005(in millions)Reconciliation of Income 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
    
    $
    305
    
    
    $
    (3
    )
    
    $
    369
    
    
    $
    25Special itemsUnrealized (gains) losses on fuel hedging instruments, net (1)
    
    
    (18
    )
    
    
    3
    
    
    
    (44
    )
    
    
    (46
    )Special items, net (2)
    
    
    35
    
    
    
    
    
    
    
    (9
    )
    
    
    1Other
special charges (3)(8)
    
    
    (7
    )
    
    
    4
    
    
    
    4
    
    
    
    8Income (loss) before cumulative effect of change in accounting
principle, as adjusted for special items
    
    $
    315
    
    
    $
    4
    
    
    $
    320
    
    
    $
    (12
    )Shares used for computation (in thousands):Basic
    
    
    85,886
    
    
    
    14,863
    
    
    
    83,794
    
    
    
    14,856Diluted
    
    
    94,673
    
    
    
    18,750
    
    
    
    94,012
    
    
    
    14,856Income (loss) per share before cumulative effect of
change in accounting principle,
as adjusted for special itemsBasic
    
    $
    3.66
    
    
    $
    0.27
    
    
    $
    3.81
    
    
    $
    (0.82
    )Diluted (7)
    
    $
    3.35
    
    
    $
    0.21
    
    
    $
    3.49
    
    
    $
    (0.82
    )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
    
    $
    68
    
    
    $
    (2
    )
    
    $
    126
    
    
    $
    27Special items:Unrealized (gains) losses on fuel hedging instruments, net (1)
    
    
    (18
    )
    
    
    3
    
    
    
    (44
    )
    
    
    (46
    )Special items, net (4)
    
    
    23
    
    
    
    
    
    
    
    (7
    )
    
    
    1Other special charges (3)
    
    
    (7
    )
    
    
    4
    
    
    
    4
    
    
    
    8Income (loss) before cumulative effect of change in accounting
principle, as adjusted for special items
    
    $
    66
    
    
    $
    5
    
    
    $
    79
    
    
    $
    (10
    )Reconciliation of Net Income (Loss) Excluding Special
items for US Airways, Inc.Net income (loss) as reported
    
    $
    246
    
    
    $
    (44
    )
    
    $
    247
    
    
    $
    (303
    )Special items:Special items, net (5)
    
    
    12
    
    
    
    
    
    
    
    (3
    )
    
    
    Reorganization items, net (6)
    
    
    
    
    
    
    26
    
    
    
    
    
    
    
    28Net loss, as adjusted for special items
    
    $
    258
    
    
    $
    (18
    )
    
    
    244
    
    
    
    (275
    ) Note:  Amounts
may not recalculate due to rounding




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##### 



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 Ended
    
    
    6 Months Ended
    
    
    6 Months EndedJune 30, 2006
    
    
    June 30, 2005
    
    
    June 30, 2006
    
    
    June 30, 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
    
    $
    2,849
    
    
    $
    832
    
    
    $
    5,373
    
    
    $
    1,522Less Express expenses:Fuel
    
    
    (203
    )
    
    
    (44
    )
    
    
    (375
    )
    
    
    (77
    )Other
    
    
    (457
    )
    
    
    (92
    )
    
    
    (901
    )
    
    
    (170
    )Total mainline operating expenses
    
    
    2,189
    
    
    
    696
    
    
    
    4,097
    
    
    
    1,275Special itemsUnrealized (gains) losses on fuel hedging instruments, net (1)
    
    
    18
    
    
    
    (3
    )
    
    
    44
    
    
    
    46Special items, net (2)
    
    
    (35
    )
    
    
    
    
    
    
    9
    
    
    
    (1
    )Other
special charges (8)
    
    
    
    
    
    
    (4
    )
    
    
    
    
    
    
    (8
    )Mainline operating expenses, excluding special items
    
    
    2,172
    
    
    
    689
    
    
    
    4,150
    
    
    
    1,312Aircraft fuel
    
    
    (669
    )
    
    
    (199
    )
    
    
    (1,223
    )
    
    
    (359
    )Realized gains on fuel hedging instruments, net
    
    
    11
    
    
    
    12
    
    
    
    12
    
    
    
    23Mainline operating expenses, excluding special items,
aircraft fuel and realized gains
on fuel hedging instruments, net
    
    $
    1,514
    
    
    $
    502
    
    
    $
    2,939
    
    
    $
    976(in cents)Mainline operating expenses per ASM
    
    
    11.15
    
    
    
    8.97
    
    
    
    10.82
    
    
    
    8.47Special items per ASMUnrealized (gains) losses on fuel hedging instruments, net (1)
    
    
    0.09
    
    
    
    (0.04
    )
    
    
    0.12
    
    
    
    0.31Special items, net (2)
    
    
    (0.18
    )
    
    
    
    
    
    
    0.02
    
    
    
    (0.01
    )Other
special charges (8)
    
    
    
    
    
    
    (0.05
    )
    
    
    
    
    
    
    (0.05
    )Mainline operating expenses per ASM, excluding special items
    
    
    11.06
    
    
    
    8.88
    
    
    
    10.96
    
    
    
    8.71Aircraft fuel
    
    
    (3.41
    )
    
    
    (2.57
    )
    
    
    (3.23
    )
    
    
    (2.38
    )Realized gains on fuel hedging instruments, net
    
    
    0.06
    
    
    
    0.15
    
    
    
    0.03
    
    
    
    0.15Mainline operating expenses per ASM, excluding special items,
aircraft fuel and realized gains
on fuel hedging instruments, net
    
    
    7.71
    
    
    
    6.47
    
    
    
    7.76
    
    
    
    6.48
 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 Gains on Fuel Hedging instruments, Net -
Mainline only
 3 Months Ended
    
    
    3 Months Ended
    
    
    6 Months Ended
    
    
    6 Months EndedJune 30, 2006
    
    
    June 30, 2005
    
    
    June 30, 2006
    
    
    June 30, 2005America West Airlines Inc.(in millions)Total operating expenses
    
    $
    920
    
    
    $
    830
    
    
    $
    1,698
    
    
    $
    1,519Less Express expenses:Fuel
    
    
    (57
    )
    
    
    (44
    )
    
    
    (103
    )
    
    
    (77
    )Other
    
    
    (102
    )
    
    
    (92
    )
    
    
    (202
    )
    
    
    (170
    )Total mainline operating expenses
    
    
    761
    
    
    
    694
    
    
    
    1,393
    
    
    
    1,272Special items:Unrealized (gains) losses on fuel hedging instruments, net (1)
    
    
    18
    
    
    
    (3
    )
    
    
    44
    
    
    
    46Special items, net (4)
    
    
    (23
    )
    
    
    
    
    
    
    7
    
    
    
    (1
    )Other
special charges (8)
    
    
    
    
    
    
    (4
    )
    
    
    
    
    
    
    (8
    )Mainline operating expenses, excluding special items
    
    
    756
    
    
    
    687
    
    
    
    1,444
    
    
    
    1,309Aircraft fuel
    
    
    (242
    )
    
    
    (199
    )
    
    
    (447
    )
    
    
    (359
    )Realized gains on fuel hedging instruments, net
    
    
    11
    
    
    
    12
    
    
    
    12
    
    
    
    23Mainline operating expenses, excluding special items, aircraft
fuel and realized gains
on fuel hedging instruments, net
    
    $
    525
    
    
    $
    500
    
    
    $
    1,009
    
    
    $
    973(in cents)Mainline Operating expenses per ASM
    
    
    10.05
    
    
    
    8.95
    
    
    
    9.43
    
    
    
    8.45Special items per ASM:Unrealized (gains) losses on fuel hedging instruments, net (1)
    
    
    0.24
    
    
    
    (0.04
    )
    
    
    0.30
    
    
    
    0.31Special items, net (4)
    
    
    (0.31
    )
    
    
    
    
    
    
    0.05
    
    
    
    (0.01
    )Other
special charges (8)
    
    
    
    
    
    
    (0.05
    )
    
    
    
    
    
    
    (0.05
    )Mainline operating expenses per ASM, excluding special items
    
    
    9.98
    
    
    
    8.86
    
    
    
    9.78
    
    
    
    8.69Aircraft fuel
    
    
    (3.20
    )
    
    
    (2.57
    )
    
    
    (3.03
    )
    
    
    (2.38
    )Realized gains on fuel hedging instruments, net
    
    
    0.14
    
    
    
    0.15
    
    
    
    0.08
    
    
    
    0.15Mainline operating expenses per ASM, excluding special items,
aircraft fuel and realized gains
on fuel hedging instruments, net
    
    
    6.92
    
    
    
    6.45
    
    
    
    6.84
    
    
    
    6.46US Airways, Inc.(in millions)Total operating expenses
    
    $
    1,946
    
    
    $
    1,892
    
    
    $
    3,706
    
    
    $
    3,695Less: Express expenses
    
    
    (534
    )
    
    
    (476
    )
    
    
    (1,033
    )
    
    
    (896
    )Total mainline operating expenses
    
    
    1,412
    
    
    
    1,416
    
    
    
    2,673
    
    
    
    2,799Special items:Special items, net (5)
    
    
    (12
    )
    
    
    
    
    
    
    3
    
    
    
    Mainline operating expenses, excluding special items
    
    
    1,400
    
    
    
    1,416
    
    
    
    2,676
    
    
    
    2,799Aircraft fuel
    
    
    (426
    )
    
    
    (381
    )
    
    
    (776
    )
    
    
    (703
    )Mainline operating expenses, excluding special items and
aircraft fuel
    
    $
    974
    
    
    $
    1,035
    
    
    $
    1,900
    
    
    $
    2,096(in cents)Mainline operating expenses per ASM (excluding Express expenses)
    
    
    11.72
    
    
    
    10.25
    
    
    
    11.58
    
    
    
    10.37Special items per ASM:Special items, net (5)
    
    
    (0.10
    )
    
    
    
    
    
    
    0.01
    
    
    
    Mainline operating expenses per ASM, excluding special items
    
    
    11.62
    
    
    
    10.25
    
    
    
    11.59
    
    
    
    10.37Aircraft fuel
    
    
    (3.53
    )
    
    
    (2.76
    )
    
    
    (3.36
    )
    
    
    (2.60
    )Mainline operating expenses per ASM excluding special items and
aircraft fuel
    
    
    8.08
    
    
    
    7.49
    
    
    
    8.23
    
    
    
    7.76
 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 Gains on Fuel Hedging instruments, Net -
Mainline only
 FOOTNOTES:
 
 1)
    
    The 2006 second quarter and the 2006 six-month period include an $18 million and $44 million
unrealized gain respectively, and the 2005 second quarter and the 2005 six month period include a
$3 million unrealized loss and a $46 million unrealized gain respectively, resulting from
mark-to-market accounting for changes in the fair value of AWAs fuel hedging instruments.2)
    
    The 2006 second quarter period includes $35 million of
merger related transition expenses, including $11 million
associated with the integration of the AWA FlightFund and US Airways
Dividend Miles frequent traveler programs. The
2006 six month period includes a $90 million gain associated with the return of equipment deposits
upon forgiveness of a loan, and $81 million of merger related transition expenses. The 2005 six
month period includes $1 million of charges related to aircraft removed from service.3)
    
    The 2006 second quarter includes $7 million of interest income earned by AWA on certain prior
year Federal income tax refunds. The 2006 six month period includes $6 million of prepayment
penalties and $5 million write-off of debt issue costs incurred with the extinguishment of debt in
connection with the $1.25 billion debt refinancing in the first quarter of 2006 less $7 million of
interest income earned by AWA on certain prior year Federal income tax refunds.4)
    
    The 2006 second quarter period includes $23 million of
merger related transition expenses, including $12 million
associated with the integration of the AWA FlightFund and US Airways
Dividend Miles frequent traveler programs. The
2006 six month period includes $51 million gain associated with the return of equipment deposits
upon forgiveness of a loan, and $44 million of merger related transition expenses that occurred
during the first quarter of 2006. The 2005 six month period includes $1 million of charges related
to aircraft removed from service.5)
    
    The 2006 second quarter includes $12 million of merger
related transition expenses, including a $1 million credit
associated with the integration of the AWA FlightFund and US Airways
Dividend Miles frequent traveler programs. The 2006
six month period includes a $40 million gain associated with the return of equipment deposits upon
forgiveness of a loan, and $37 million of merger related transition expenses.6)
    
    During the 2005 second quarter and 2005 six month period US Airways recognized $26 million and
$28 million, respectively in reorganization items incurred as a direct result of the Companys
Chapter 11 filing.7)
    
    Computation excludes interest associated with the 7.0% senior convertible notes of $3 million
and $5 million for the three and six months ended June 30, 2006, respectively; the 7.5% convertible
senior notes of $4 million for the six months ended June 30, 2006.8)
    
    The second
quarter of 2005 includes a $4 million loss on the sale and leaseback of one new Airbus A320
aircraft acquired during the period. The 2005 six month period includes a total of a $8 million
loss on the sale and leaseback of two new Airbus A320 aircraft acquired during the period.




---



##### 



America West Airlines, Inc.
Consolidated Statements of Operations
(in millions)
(unaudited)
 3 Months Ended
    
    
    3 Months Ended
    
    
    Percent
    
    
    6 Months Ended
    
    
    6 Months Ended
    
    
    PercentJune 30, 2006
    
    

June 30, 2005
    
    
    Change
    
    

June 30, 2006
    
    

June 30, 2005
    
    
    ChangeOperating revenuesMainline passenger
    
    $
    747
    
    
    $
    657
    
    
    
    13.7
    
    
    $
    1,399
    
    
    $
    1,234
    
    
    
    13.4Express passenger
    
    
    184
    
    
    
    129
    
    
    
    42.6
    
    
    
    337
    
    
    
    233
    
    
    
    44.6Cargo
    
    
    7
    
    
    
    8
    
    
    
    (12.5
    )
    
    
    16
    
    
    
    17
    
    
    
    (5.9
    )Other
    
    
    43
    
    
    
    51
    
    
    
    (15.7
    )
    
    
    90
    
    
    
    95
    
    
    
    (5.3
    )Total operating revenues
    
    
    981
    
    
    
    845
    
    
    
    16.1
    
    
    
    1,842
    
    
    
    1,579
    
    
    
    16.7Operating expensesAircraft fuel and related taxes
    
    
    242
    
    
    
    199
    
    
    
    21.6
    
    
    
    447
    
    
    
    359
    
    
    
    24.5Gain on fuel hedging instruments, net:Realized
    
    
    (11
    )
    
    
    (12
    )
    
    
    (8.3
    )
    
    
    (12
    )
    
    
    (23
    )
    
    
    (47.8
    )Unrealized
    
    
    (18
    )
    
    
    3
    
    
    
    
    
    
    
    (44
    )
    
    
    (46
    )
    
    
    (4.3
    )Salaries and related costs
    
    
    191
    
    
    
    173
    
    
    
    10.4
    
    
    
    366
    
    
    
    348
    
    
    
    5.2Express expensesFuel
    
    
    57
    
    
    
    44
    
    
    
    29.5
    
    
    
    103
    
    
    
    77
    
    
    
    33.8Other
    
    
    102
    
    
    
    92
    
    
    
    10.9
    
    
    
    202
    
    
    
    170
    
    
    
    18.8Aircraft rent
    
    
    85
    
    
    
    81
    
    
    
    4.9
    
    
    
    171
    
    
    
    158
    
    
    
    8.2Aircraft maintenance
    
    
    73
    
    
    
    66
    
    
    
    10.6
    
    
    
    125
    
    
    
    120
    
    
    
    4.2Other rent and landing fees
    
    
    45
    
    
    
    46
    
    
    
    (2.2
    )
    
    
    90
    
    
    
    87
    
    
    
    3.4Selling expenses
    
    
    42
    
    
    
    44
    
    
    
    (4.5
    )
    
    
    81
    
    
    
    81
    
    
    
    Special items, net
    
    
    23
    
    
    
    
    
    
    
    
    
    
    
    (7
    )
    
    
    1
    
    
    
    Depreciation and amortization
    
    
    10
    
    
    
    12
    
    
    
    (16.7
    )
    
    
    21
    
    
    
    23
    
    
    
    (8.7
    )Other
    
    
    79
    
    
    
    82
    
    
    
    (3.7
    )
    
    
    155
    
    
    
    164
    
    
    
    (5.5
    )Total operating expenses
    
    
    920
    
    
    
    830
    
    
    
    10.8
    
    
    
    1,698
    
    
    
    1,519
    
    
    
    11.8Operating income
    
    
    61
    
    
    
    15
    
    
    
    306.7
    
    
    
    144
    
    
    
    60
    
    
    
    Nonoperating income (expenses)Interest income
    
    
    20
    
    
    
    4
    
    
    
    
    
    
    
    33
    
    
    
    7
    
    
    
    371.4Interest expense, net
    
    
    (10
    )
    
    
    (21
    )
    
    
    (52.4
    )
    
    
    (37
    )
    
    
    (42
    )
    
    
    (11.9
    )Other, net
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    (10
    )
    
    
    2
    
    
    
    Nonoperating
income (expenses), net
    
    
    11
    
    
    
    (17
    )
    
    
    (164.7
    )
    
    
    (14
    )
    
    
    (33
    )
    
    
    (57.6
    )Income before income taxes and
cumulative effect of change of
accounting principle
    
    
    72
    
    
    
    (2
    )
    
    
    
    
    
    
    130
    
    
    
    27
    
    
    
    Income tax
provision
    
    
    4
    
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    
    
    
    
    Income
(loss) before cumulative effect of
change in accounting principle
    
    
    68
    
    
    
    (2
    )
    
    
    
    
    
    
    126
    
    
    
    27
    
    
    
    Cumulative effect of change in
accounting principle
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    (202
    )
    
    
    Net income (loss)
    
    $
    68
    
    
    $
    (2
    )
    
    
    
    
    
    $
    127
    
    
    $
    (175
    )
    
    
    




---



##### 



America West Airlines, Inc.
Operating Statistics
 3 Months Ended
    
    3 Months Ended
    
    Percent
    
    6 Months Ended
    
    6 Months Ended
    
    PercentJune 30, 2006
    

June 30, 2005
    
    Change
    
    June 30, 2006
    

June 30, 2005
    
    ChangeMainlineRevenue passenger miles (in millions)
    
    
    6,238
    
    
    
    6,386
    
    
    
    -2.3
    %
    
    
    11,898
    
    
    
    12,057
    
    
    
    -1.3
    %Available seat miles (ASM) (in millions)
    
    
    7,580
    
    
    
    7,755
    
    
    
    -2.3
    %
    
    
    14,779
    
    
    
    15,057
    
    
    
    -1.8
    %Passenger load factor (percent)
    
    
    82.3
    
    
    
    82.3
    
    
    
    pts
    
    
    80.5
    
    
    
    80.1
    
    
    0.4
    ptsYield (cents)
    
    
    11.97
    
    
    
    10.29
    
    
    
    16.4
    %
    
    
    11.76
    
    
    
    10.23
    
    
    
    14.9
    %Passenger revenue per ASM (cents)
    
    
    9.85
    
    
    
    8.47
    
    
    
    16.3
    %
    
    
    9.47
    
    
    
    8.20
    
    
    
    15.5
    %Passenger enplanements (in thousands)
    
    
    5,545
    
    
    
    5,752
    
    
    
    -3.6
    %
    
    
    10,637
    
    
    
    10,924
    
    
    
    -2.6
    %Aircraft (end of period)
    
    
    135
    
    
    
    143
    
    
    
    -5.6
    %
    
    
    135
    
    
    
    143
    
    
    
    -5.6
    %Block hours
    
    
    139,183
    
    
    
    143,365
    
    
    
    -2.9
    %
    
    
    273,153
    
    
    
    279,862
    
    
    
    -2.4
    %Average stage length (miles)
    
    
    1,040
    
    
    
    1,037
    
    
    
    0.3
    %
    
    
    1,034
    
    
    
    1,030
    
    
    
    0.4
    %Average passenger journey (miles)
    
    
    1,609
    
    
    
    1,681
    
    
    
    -4.3
    %
    
    
    1,594
    
    
    
    1,653
    
    
    
    -3.6
    %Fuel consumption (gallons in millions)
    
    
    111.1
    
    
    
    114.5
    
    
    
    -3.0
    %
    
    
    216.3
    
    
    
    221.7
    
    
    
    -2.4
    %Average fuel price (dollars per gallon)
    
    
    2.18
    
    
    
    1.74
    
    
    
    25.3
    %
    
    
    2.07
    
    
    
    1.62
    
    
    
    27.6
    %Average fuel price including realized gains on fuel hedging
instruments, net (dollars)
    
    
    2.08
    
    
    
    1.63
    
    
    
    27.6
    %
    
    
    2.01
    
    
    
    1.52
    
    
    
    32.7
    %Full-time equivalent employees (end of period)
    
    
    12,766
    
    
    
    12,200
    
    
    
    4.6
    %
    
    
    12,766
    
    
    
    12,177
    
    
    
    4.8
    %Operating cost per ASM (cents)
    
    
    10.05
    
    
    
    8.95
    
    
    
    12.3
    %
    
    
    9.43
    
    
    
    8.45
    
    
    
    11.7
    %Operating cost per ASM excluding special items (cents)
    
    
    9.98
    
    
    
    8.86
    
    
    
    12.7
    %
    
    
    9.78
    
    
    
    8.69
    
    
    
    12.5
    %Operating cost per ASM excluding special items, fuel and
realized gains on fuel hedging instruments, net (cents)
    
    
    6.92
    
    
    
    6.45
    
    
    
    7.4
    %
    
    
    6.84
    
    
    
    6.46
    
    
    
    5.8
    %ExpressRevenue passenger miles (in millions)
    
    
    963
    
    
    
    875
    
    
    
    10.1
    %
    
    
    1,810
    
    
    
    1,574
    
    
    
    15.0
    %Available seat miles (in millions)
    
    
    1,209
    
    
    
    1,225
    
    
    
    -1.3
    %
    
    
    2,376
    
    
    
    2,206
    
    
    
    7.7
    %Passenger load factor (percent)
    
    
    79.7
    
    
    
    71.4
    
    
    8.3
    pts
    
    
    76.2
    
    
    
    71.4
    
    
    4.8
    ptsPassenger revenue per ASM (cents)
    
    
    15.23
    
    
    
    10.53
    
    
    
    44.6
    %
    
    
    14.20
    
    
    
    10.56
    
    
    
    34.5
    %Passenger enplanements (in thousands)
    
    
    1,832
    
    
    
    1,469
    
    
    
    24.7
    %
    
    
    3,471
    
    
    
    2,668
    
    
    
    30.1
    %Operating cost per ASM (cents)
    
    
    13.14
    
    
    
    11.10
    
    
    
    18.4
    %
    
    
    12.80
    
    
    
    11.20
    
    
    
    14.3
    %TotalRevenue passenger miles (in millions)
    
    
    7,201
    
    
    
    7,261
    
    
    
    -0.8
    %
    
    
    13,708
    
    
    
    13,631
    
    
    
    0.6
    %Available seat miles (in millions)
    
    
    8,789
    
    
    
    8,980
    
    
    
    -2.1
    %
    
    
    17,155
    
    
    
    17,263
    
    
    
    -0.6
    %Passenger load factor (percent)
    
    
    81.9
    
    
    
    80.9
    
    
    1.0
    pts
    
    
    79.9
    
    
    
    79.0
    
    
    0.9
    ptsTotal revenue per ASM (cents)
    
    
    11.16
    
    
    
    9.41
    
    
    
    18.6
    %
    
    
    10.74
    
    
    
    9.15
    
    
    
    17.4
    %Passenger enplanements (in thousands)
    
    
    7,377
    
    
    
    7,221
    
    
    
    2.2
    %
    
    
    14,108
    
    
    
    13,592
    
    
    
    3.8
    %Operating cost per ASM (cents)
    
    
    10.47
    
    
    
    9.24
    
    
    
    13.3
    %
    
    
    9.90
    
    
    
    8.80
    
    
    
    12.5
    %




---



##### 



US Airways, Inc.
Statements of Operations
(in millions)
(unaudited)
 Successor Company
    
    
    Predecessor Company
    
    
    
    
    
    
    Successor Company
    
    
    Predecessor Company3 Months Ended
    
    
    3 Months Ended
    
    
    Percent
    
    
    6 Months Ended
    
    
    6 Months Ended
    
    
    PercentJune 30, 2006
    
    
    June 30, 2005
    
    
    Change
    
    
    June 30, 2006
    
    
    June 30, 2005
    
    
    ChangeOperating revenuesMainline passenger
    
    $
    1,439
    
    
    $
    1,332
    
    
    
    8.0
    
    
    $
    2,597
    
    
    $
    2,465
    
    
    
    5.4Express passenger
    
    
    596
    
    
    
    436
    
    
    
    36.7
    
    
    
    1,054
    
    
    
    750
    
    
    
    40.5Cargo
    
    
    29
    
    
    
    25
    
    
    
    16.0
    
    
    
    58
    
    
    
    46
    
    
    
    26.1Other
    
    
    162
    
    
    
    158
    
    
    
    2.5
    
    
    
    319
    
    
    
    311
    
    
    
    2.6Total operating revenues
    
    
    2,226
    
    
    
    1,951
    
    
    
    14.1
    
    
    
    4,028
    
    
    
    3,572
    
    
    
    12.8Operating expensesAircraft fuel and related taxes
    
    
    426
    
    
    
    381
    
    
    
    11.8
    
    
    
    776
    
    
    
    703
    
    
    
    10.4Salaries and related costs
    
    
    351
    
    
    
    332
    
    
    
    5.7
    
    
    
    680
    
    
    
    741
    
    
    
    (8.2
    )Express expenses
    
    
    534
    
    
    
    476
    
    
    
    12.2
    
    
    
    1,033
    
    
    
    896
    
    
    
    15.3Aircraft rent
    
    
    95
    
    
    
    97
    
    
    
    (2.1
    )
    
    
    194
    
    
    
    195
    
    
    
    (0.5
    )Aircraft maintenance
    
    
    80
    
    
    
    89
    
    
    
    (10.1
    )
    
    
    166
    
    
    
    161
    
    
    
    3.1Other rent and landing fees
    
    
    100
    
    
    
    114
    
    
    
    (12.3
    )
    
    
    195
    
    
    
    214
    
    
    
    (8.9
    )Selling expenses
    
    
    79
    
    
    
    87
    
    
    
    (9.2
    )
    
    
    146
    
    
    
    181
    
    
    
    (19.3
    )Special items, net
    
    
    12
    
    
    
    
    
    
    
    
    
    
    
    (3
    )
    
    
    
    
    
    
    Depreciation and amortization
    
    
    37
    
    
    
    56
    
    
    
    (33.9
    )
    
    
    73
    
    
    
    105
    
    
    
    (30.5
    )Other
    
    
    232
    
    
    
    260
    
    
    
    (10.8
    )
    
    
    446
    
    
    
    499
    
    
    
    (10.6
    )Total operating expenses
    
    
    1,946
    
    
    
    1,892
    
    
    
    2.9
    
    
    
    3,706
    
    
    
    3,695
    
    
    
    0.3Operating income (loss)
    
    
    280
    
    
    
    59
    
    
    
    
    
    
    
    322
    
    
    
    (123
    )
    
    
    (361.8
    )Nonoperating income (expenses)Interest income
    
    
    21
    
    
    
    7
    
    
    
    
    
    
    
    34
    
    
    
    9
    
    
    
    277.8Interest expense, net
    
    
    (53
    )
    
    
    (80
    )
    
    
    (33.8
    )
    
    
    (107
    )
    
    
    (156
    )
    
    
    (31.4
    )Reorganization items, net
    
    
    
    
    
    
    (26
    )
    
    
    
    
    
    
    
    
    
    
    (28
    )
    
    
    Other, net
    
    
    (1
    )
    
    
    (6
    )
    
    
    (83.3
    )
    
    
    (1
    )
    
    
    (7
    )
    
    
    (85.7
    )Total nonoperating expenses, net
    
    
    (33
    )
    
    
    (105
    )
    
    
    (68.6
    )
    
    
    (74
    )
    
    
    (182
    )
    
    
    Income (loss) before income taxes
    
    
    247
    
    
    
    (46
    )
    
    
    
    
    
    
    248
    
    
    
    (305
    )
    
    
    Income tax
provision (benefit)
    
    
    1
    
    
    
    (2
    )
    
    
    
    
    
    
    1
    
    
    
    (2
    )
    
    
    (150.0
    )Net income (loss)
    
    $
    246
    
    
    $
    (44
    )
    
    
    
    
    
    $
    247
    
    
    $
    (303
    )
    
    
    




---



##### 



US Airways, Inc.
Operating Statistics
 3 Months Ended
    
    3 Months Ended
    
    Percent
    
    6 months Ended
    
    6 months Ended
    
    PercentJune 30, 2006
    
    June 30, 2005
    
    Change
    
    June 30, 2006
    
    June 30, 2005
    
    ChangeMainline:Revenue passenger miles (in millions)
    
    
    9,910
    
    
    
    10,728
    
    
    
    -7.6
    %
    
    
    18,206
    
    
    
    20,373
    
    
    
    -10.6
    %Available seat miles (ASM) (in millions)
    
    
    12,055
    
    
    
    13,817
    
    
    
    -12.8
    %
    
    
    23,085
    
    
    
    27,003
    
    
    
    -14.5
    %Passenger load factor (percent)
    
    
    82.2
    
    
    
    77.6
    
    
    4.6
    pts
    
    
    78.9
    
    
    
    75.4
    
    
    
    3.5
    ptsYield (cents)
    
    
    14.52
    
    
    
    12.42
    
    
    
    16.9
    %
    
    
    14.26
    
    
    
    12.10
    
    
    
    17.9
    %Passenger revenue per ASM (cents)
    
    
    11.94
    
    
    
    9.64
    
    
    
    23.8
    %
    
    
    11.25
    
    
    
    9.13
    
    
    
    23.2
    %Passenger enplanements (in thousands)
    
    
    9,626
    
    
    
    11,102
    
    
    
    -13.3
    %
    
    
    18,126
    
    
    
    21,355
    
    
    
    -15.1
    %Aircraft (end of period)
    
    
    224
    
    
    
    268
    
    
    
    -16.4
    %
    
    
    224
    
    
    
    268
    
    
    
    -16.4
    %Block hours
    
    
    205,547
    
    
    
    249,186
    
    
    
    -17.5
    %
    
    
    398,468
    
    
    
    496,239
    
    
    
    -19.7
    %Average stage length (miles)
    
    
    883
    
    
    
    797
    
    
    
    10.8
    %
    
    
    855
    
    
    
    796
    
    
    
    7.4
    %Average passenger journey (miles)
    
    
    1,030
    
    
    
    966
    
    
    
    6.6
    %
    
    
    1,005
    
    
    
    954
    
    
    
    5.3
    %Fuel consumption (gallons in millions)
    
    
    197.4
    
    
    
    226.4
    
    
    
    -12.8
    %
    
    
    379.7
    
    
    
    444.6
    
    
    
    -14.6
    %Average fuel price (dollars per gallon)
with related taxes
    
    
    2.16
    
    
    
    1.68
    
    
    
    28.2
    %
    
    
    2.04
    
    
    
    1.58
    
    
    
    29.3
    %Full-time equivalent employees (end of
period)
    
    
    19,222
    
    
    
    21,396
    
    
    
    -10.2
    %
    
    
    19,222
    
    
    
    21,396
    
    
    
    -10.2
    %Operating cost per ASM (cents)
    
    
    11.72
    
    
    
    10.25
    
    
    
    14.3
    %
    
    
    11.58
    
    
    
    10.37
    
    
    
    11.7
    %Operating cost per ASM excluding
special items(cents)
    
    
    11.62
    
    
    
    10.25
    
    
    
    13.4
    %
    
    
    11.59
    
    
    
    10.37
    
    
    
    11.8
    %Operating cost per ASM excluding
special items and fuel (cents)
    
    
    8.08
    
    
    
    7.49
    
    
    
    7.9
    %
    
    
    8.23
    
    
    
    7.76
    
    
    
    6.0
    %ExpressRevenue passenger miles (in millions)
    
    
    1,955
    
    
    
    1,803
    
    
    
    8.4
    %
    
    
    3,539
    
    
    
    3,206
    
    
    
    10.4
    %Available seat miles (in millions)
    
    
    2,561
    
    
    
    2,679
    
    
    
    -4.4
    %
    
    
    5,053
    
    
    
    5,013
    
    
    
    0.8
    %Passenger load factor (percent)
    
    
    76.3
    
    
    
    67.3
    
    
    9.0
    pts
    
    
    70.0
    
    
    
    64.0
    
    
    
    9.4
    ptsPassenger revenue per ASM (cents)
    
    
    23.28
    
    
    
    16.27
    
    
    
    43.1
    %
    
    
    20.87
    
    
    
    14.96
    
    
    
    39.5
    %Passenger enplanements (in thousands)
    
    
    5,239
    
    
    
    4,725
    
    
    
    10.9
    %
    
    
    9,508
    
    
    
    8,540
    
    
    
    11.3Operating cost per ASM (cents)
    
    
    20.85
    
    
    
    17.77
    
    
    
    17.3
    %
    
    
    20.44
    
    
    
    17.87
    
    
    
    14.4
    %TOTAL  Mainline & ExpressRevenue passenger miles (in millions)
    
    
    11,865
    
    
    
    12,531
    
    
    
    -5.3
    %
    
    
    21,745
    
    
    
    23,579
    
    
    
    -7.8
    %Available seat miles (in millions)
    
    
    14,616
    
    
    
    16,496
    
    
    
    -11.4
    %
    
    
    28,138
    
    
    
    32,016
    
    
    
    -12.1
    %Passenger load factor (percent)
    
    
    81.2
    
    
    
    76.0
    
    
    5.2
    pts
    
    
    77.3
    
    
    
    73.6
    
    
    
    3.7
    ptsTotal revenue per ASM (cents)
    
    
    15.23
    
    
    
    11.83
    
    
    
    28.8
    %
    
    
    14.32
    
    
    
    11.16
    
    
    
    28.3
    %Operating cost per ASM (cents)
    
    
    13.31
    
    
    
    11.47
    
    
    
    16.1
    %
    
    
    13.17
    
    
    
    11.54
    
    
    
    14.1
    %




---



##### 



US Airways Group, Inc.
Condensed Consolidated Balance Sheets
(in millions)
(unaudited)
 June 30, 2006
    
    
    December 31, 2005AssetsCurrent assetsCash equivalents and short-term investments
    
    $
    2,220
    
    
    $
    1,577Restricted cash
    
    
    4
    
    
    
    8Accounts receivable, net
    
    
    467
    
    
    
    353Materials and supplies, net
    
    
    228
    
    
    
    229Prepaid expenses and other
    
    
    498
    
    
    
    392Total current assets
    
    
    3,417
    
    
    
    2,559Property and equipment, netFlight equipment
    
    
    1,985
    
    
    
    1,920Ground property and equipment
    
    
    557
    
    
    
    532Less accumulated depreciation and amortization
    
    
    (498
    )
    
    
    (431
    )2,044
    
    
    
    2,021Equipment purchase deposits
    
    
    40
    
    
    
    43Total property and equipment
    
    
    2,084
    
    
    
    2,064Other assetsGoodwill
    
    
    701
    
    
    
    732Other intangibles, net
    
    
    567
    
    
    
    583Restricted cash
    
    
    984
    
    
    
    792Other assets
    
    
    235
    
    
    
    234Total other assets
    
    
    2,487
    
    
    
    2,341Total assets
    
    $
    7,988
    
    
    $
    6,964Liabilities and Stockholders EquityCurrent liabilitiesCurrent maturities of debt and capital leases
    
    $
    113
    
    
    $
    211Accounts payable
    
    
    469
    
    
    
    457Air traffic liability
    
    
    1,214
    
    
    
    788Accrued compensation and vacation
    
    
    230
    
    
    
    210Accrued taxes
    
    
    191
    
    
    
    146Other accrued expenses
    
    
    861
    
    
    
    847Total current liabilities
    
    
    3,078
    
    
    
    2,659Noncurrent liabilities and deferred creditsLong-term debt and capital leases, net of current
maturities
    
    
    2,903
    
    
    
    2,749Deferred gains and credits
    
    
    229
    
    
    
    254Employment benefit liabilities and other
    
    
    851
    
    
    
    882Total noncurrent liabilities and deferred credits
    
    
    3,983
    
    
    
    3,885Stockholders equityPreferred stock
    
    
    
    
    
    
    Common stock
    
    
    1
    
    
    
    1Additional paid-in capital
    
    
    1,395
    
    
    
    1,258Accumulated deficit
    
    
    (456
    )
    
    
    (826
    )Treasury stock
    
    
    (13
    )
    
    
    (13
    )Total stockholders equity
    
    
    927
    
    
    
    420Total liabilities and stockholders equity
    
    $
    7,988
    
    
    $
    6,964