TEMPE, Ariz., Jan. 25, 2012 /PRNewswire/ --

Highlights of US Airways Group, Inc.'s (the Company) fourth quarter and 2011 results:

• Fourth quarter net profit excluding net special charges was $21 million, or $0.13 per diluted share. This compares to a fourth quarter 2010 net profit excluding net special charges of $28 million, or $0.17 per diluted share.
• Full year 2011 net profit excluding net special charges was $111 million, or $0.68 per diluted share. This compares to a full year 2010 net profit excluding net special credits of $447 million, or $2.34 per diluted share.
• A 38 percent increase in consolidated fuel price drove the year-over-year decline in profitability in 2011. Had average fuel prices remained at 2010 levels, 2011 fuel expense would have been approximately $1.2 billion lower.
• The airline's employees earned approximately $12 million in profit sharing for the full year results, and an additional $13 million in operational incentive payouts during 2011.

US Airways Group, Inc. (NYSE: LCC) today reported its fourth quarter and 2011 financial results. For the fourth quarter 2011, net profit excluding net special charges was $21 million, or $0.13 per diluted share. Net profit excluding net special charges for the fourth quarter 2010 was $28 million, or $0.17 per diluted share. On a GAAP basis, the Company reported a net profit of $18 million for its fourth quarter 2011, or $0.11 per diluted share, compared to a net profit of $28 million, or $0.17 per diluted share, for the same period in 2010.

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

For full year 2011, the Company reported a net profit of $111 million, or $0.68 per diluted share, which excludes net special charges totaling $40 million. This compares to a full year 2010 profit excluding net special credits of $447 million, or $2.34 per diluted share. On a GAAP basis, the Company reported a net profit of $71 million, or $0.44 per diluted share for 2011, compared to a net profit of $502 million, or $2.61 per share, in 2010. See the accompanying notes in the Financial Tables section of this press release for a reconciliation of GAAP financial information to non-GAAP financial information.

US Airways Group, Inc. Chairman and CEO Doug Parker stated, "We are very pleased to report a profit for both the fourth quarter and full year of 2011, particularly given the extraordinarily high cost of jet fuel.

"Strong demand for our product and outstanding operations performance by the US Airways team resulted in numerous records set by our airline. Passenger revenue, total revenue, and passenger revenue per available seat mile all set new Company records for both the fourth quarter and the full year. We also had our best fourth quarter ever in terms of operating reliability, including our best on-time performance, highest completion factor and lowest mishandled baggage ratio.

"Looking forward, we are encouraged by the continued strength in demand and believe US Airways is well positioned for success in 2012 and beyond."

Revenue and Cost Comparisons

A robust demand environment and record passenger yields led to improved revenue performance. Total revenues in the fourth quarter were a record $3.2 billion, up 8.5 percent versus the fourth quarter 2010 on a 1.3 percent decrease in total available seat miles (ASMs). Total revenue per ASM was a record 15.20 cents, up 9.9 percent versus the same period last year driven primarily by a 9.4 percent increase in passenger yields.

For the full year 2011, total revenues were a record $13.1 billion, up 9.6 percent versus 2010. Total revenue per ASM increased 8.5 percent to a record 15.06 cents, driven by a 7.8 percent increase in passenger yield and a record load factor of 82.3 percent, up from 81.1 percent in 2010.

Total operating expenses in the fourth quarter were $3.0 billion, up 8.7 percent over the same period last year due primarily to a $232 million increase in consolidated fuel expense. Mainline cost per available seat mile (CASM) was 13.18 cents, up 9.3 percent on flat mainline ASMs. Excluding special charges, fuel and profit sharing, mainline CASM was 8.49 cents, up 1.1 percent versus the same period last year. Express CASM excluding special charges and fuel was 14.94 cents, up 8.2 percent on a 7.2 percent decrease in ASMs.  This increase is due primarily to the previously announced increase in maintenance costs related to our PSA CRJ-200 aircraft.

For the full year 2011, total operating expenses were $12.6 billion, up 13.5 percent versus 2010 due primarily to a 40 percent increase in fuel expense. Excluding special charges, fuel and profit sharing, mainline CASM increased 0.6 percent to 8.35 cents. Express CASM excluding special charges and fuel increased 6.7 percent to 14.71 cents.

Liquidity

As of December 31, 2011, the Company had $2.31 billion in total cash and investments, of which $365 million was restricted, up from $2.28 billion, of which $364 million was restricted on December 31, 2010.

Special Charges

The Company recognized $3 million of net special charges in the fourth quarter. Special charges included a $2 million charge related to auction rate securities arbitration and $1 million in other charges incurred at its Express subsidiary.

Notable Accomplishments

• Closed an agreement with Delta Air Lines to transfer takeoff and landing rights at New York's LaGuardia and Washington D.C.'s Reagan National airports. The first new flights from Washington start March 25th with service to 11 new cities and additional service in other existing communities.
• Took delivery of the remaining nine of 12 A321 aircraft deliveries scheduled for 2011. The Company expects to take delivery of an additional 12 A321 aircraft in 2012. The new aircraft, replacing 24 legacy Boeing 737 aircraft, will feature more First Class seats and will be equipped with Gogo Inflight Internet.
• Completed the installation of first class seating on 110 US Airways Express regional jets including the Embraer 175 and 170 and Canadair Regional Jet 700 and 900 fleets. The Company has also begun installation of Envoy Suite service - fully lie-flat business-class seats with advanced on-demand in-flight entertainment systems - on its fleet of wide-body Airbus A330-300 aircraft. Other product enhancements include renovations to airport clubs and new meals for the Company's domestic First Class and Envoy products.
• In conjunction with the previously announced launch of its new Interactive Voice Response System (IVR), created 400 new jobs at its Phoenix, Reno, Nev. and Winston-Salem, N.C. reservations centers for work that was previously handled outside of the United States.
• Added SkyWest Airlines to a portfolio of partners operating as US Airways Express. SkyWest Airlines now operates six daily Express flights from US Airways' hub in Phoenix and by spring 2012, will operate approximately 49 flights to 19 destinations. SkyWest will serve US Airways' Phoenix-based Express operation with 14 50-passenger Bombardier CRJ200 regional jet aircraft, replacing the CRJ200 and Dash 8 Express service previously operated by Mesa Airlines.
• Launched a new redesign of the Company's in-flight magazine. US Airways Magazine has a fresh new look and presents readers with stories about the airline, its employees and the people who fly it. The magazine will also include a collection of features and stories about US Airways and Star Alliance destinations.
• As part of its annual “Hope Takes Flight” campaign to benefit the United Way, US Airways' 32,000 employees pledged more than $1.3 million annually. The campaign, which ran between Sept. 23 and Nov. 13, contributed to the nearly $9.5 million US Airways employees have raised for United Way since 2000. The United Way works to address health and human needs in more than 1,300 communities across the country.

Analyst Conference Call/Webcast Details

US Airways will conduct a live audio webcast of its earnings call today at 11:30 a.m. ET, which will be available to the public on a listen-only basis at www.usairways.com under the Company Info >>Investor Relations tab. An archive of the call/webcast will be available in the Investor Relations portion of the Web site through Feb. 25.

2012 Investor Guidance

The Company will provide its investor relations guidance on its Web site (www.usairways.com) immediately following its 11:30 a.m. ET conference call. The Company typically provides guidance related to cost per available seat mile (CASM) excluding special charges, fuel and profit sharing, fuel prices, other revenues and estimated interest expense/income on its investor relations update page on its web site. This update will also include the airline's capacity, fleet plan and estimated capital spending for 2012.

About US Airways

US Airways, along with US Airways Shuttle and US Airways Express, operates more than 3,100 flights per day and serves more than 200 communities in the U.S., Canada, Mexico, Europe, the Middle East, the Caribbean, Central and South America. The airline employs more than 32,000 aviation professionals worldwide and is a member of the Star Alliance network, which offers its customers more than 21,000 daily flights to 1,290 airports in 189 countries. Together with its US Airways Express partners, the airline serves approximately 80 million passengers each year and operates hubs in Charlotte, N.C., Philadelphia and Phoenix, and a focus city in Washington, D.C. at Ronald Reagan Washington National Airport. US Airways was the only airline included as one of the 50 best companies to work for in the U.S. by LATINA Style magazine's 50 Report for 2010 and 2011. For six years in a row, the airline also earned a 100 percent rating on the Human Rights Campaign Corporate Equality index. The Corporate Equality index is a leading indicator of companies' attitudes and policies toward lesbian, gay, bisexual and transgender employees and customers. US Airways also ranked #1 among its competing hub-and-spoke network carriers for 2010 performance as rated by the Wichita State University/Purdue University Airline Quality Rating (AQR). For more company information visit usairways.com, follow on Twitter @USAirways or at Facebook.com/USAirways. (LCCF)

Forward Looking Statements

Certain of the statements contained or referred to herein are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by words such as "may," "will," "expect," "intend," "anticipate," "believe," "estimate," "plan," "project," "could," "should," “would," "continue" and similar terms used in connection with statements regarding, among others, the outlook, expected fuel costs, revenue and pricing environment, and expected financial performance and liquidity position of the Company. Such statements include, but are not limited to, statements about future financial and operating results, the Company's plans, objectives, expectations and intentions, and other statements that are not historical facts. These statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties that could cause the Company's actual results and financial position to differ materially from these statements. Such risks and uncertainties include, but are not limited to, the following: the impact of significant operating losses in the future; downturns in economic conditions and their impact on passenger demand, booking practices and related revenues; increased costs of financing, a reduction in the availability of financing and fluctuations in interest rates; the impact of the price and availability of fuel and significant disruptions in the supply of aircraft fuel; our high level of fixed obligations and our ability to fund general corporate requirements, obtain additional financing and respond to competitive developments; any failure to comply with the liquidity covenants contained in our financing arrangements; provisions in our credit card processing and other commercial agreements that may affect our liquidity; the impact of union disputes, employee strikes and other labor-related disruptions; our inability to maintain labor costs at competitive levels; interruptions or disruptions in service at one or more of our hub airports or our focus city; our reliance on third-party regional operators or third-party service providers; our reliance on and costs, rights and functionality of third-party distribution channels, including those provided by global distribution systems, conventional travel agents and online travel agents; changes in government legislation and regulation; our reliance on automated systems and the impact of any failure or disruption of these systems; the impact of changes to our business model; competitive practices in the industry, including the impact of industry consolidation; the loss of key personnel or our ability to attract and retain qualified personnel; the impact of conflicts overseas or terrorist attacks, and the impact of ongoing security concerns; our ability to operate and grow our route network; the impact of environmental laws and regulations; costs of ongoing data security compliance requirements and the impact of any data security breach; the impact of any accident involving our aircraft or the aircraft of our regional operators; delays in scheduled aircraft deliveries or other loss of anticipated fleet capacity; the impact of weather conditions and seasonality of airline travel; the impact of possible future increases in insurance costs or reductions in available insurance coverage; the impact of global events that affect travel behavior, such as an outbreak of a contagious disease; the impact of foreign currency exchange rate fluctuations; our ability to use NOLs and certain other tax attributes; and other risks and uncertainties listed from time to time in our reports to and filings with the Securities and Exchange Commission (“SEC”). There may be other factors not identified above of which the Company is not currently aware that may affect matters discussed in the forward-looking statements, and may also cause actual results to differ materially from those discussed. The Company assumes no obligation to publicly update or supplement any forward-looking statement to reflect actual results, changes in assumptions or changes in other factors affecting such estimates other than as required by law. Additional factors that may affect the future results of the Company are set forth in the section entitled "Risk Factors" in the Company's Report on Form 10-Q for the quarter ended September 30, 2011 and in the Company's other filings with the SEC, which are available at www.usairways.com.