US Airways Reports Third Quarter Results
Highest Third Quarter Earnings in Company History; Second Highest Excluding Special Items
Highlights of US Airways Group, Inc.'s (the Company) third quarter 2012 results:
- The Company reported a third quarter net profit excluding special items of $192 million, the second highest third quarter profit excluding special items in Company history. This compares to the Company's third quarter 2011 net profit excluding special items of $95 million.
- On a GAAP basis, the Company reported a record third quarter net profit of $245 million versus the third quarter 2011 net profit of $76 million.
- Year-to-date, the Company has accrued $54 million for its annual employee profit sharing program. In addition, US Airways' team members have earned approximately $17 million in operational incentive payouts related to the Company's outstanding operational performance.
TEMPE, Ariz., Oct. 24, 2012 /PRNewswire/ -- US Airways Group, Inc. (NYSE: LCC) today reported its third quarter 2012 financial results. For the third quarter 2012, the Company reported a net profit excluding special items of $192 million, or $0.98 per diluted share, the second highest third quarter profit excluding special items in Company history. This compares to $95 million, or $0.51 per diluted share in the Company's third quarter 2011. On a GAAP basis, the Company reported a record net profit of $245 million for its third quarter 2012, or $1.24 per diluted share, compared to a net profit of $76 million, or $0.41 per diluted share, for the same period in 2011.
(Logo: http://photos.prnewswire.com/prnh/20120103/LA28814LOGO)
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, "The 32,000 hard-working people of US Airways are doing a phenomenal job. We are setting Company records in all the operational metrics that matter to our customers, including completion factor, on-time arrivals and baggage handling. This record operating reliability is driving strong customer demand and keeping costs in check, resulting in outstanding financial performance.
"Looking forward, the revenue environment remains strong. As evidenced by these outstanding financial and operational results, US Airways is extremely well-positioned for the remainder of 2012 and beyond," concluded Parker.
Revenue and Cost Comparisons
Strong passenger demand and record consolidated third quarter yields led to improved revenue performance. Total revenues in the third quarter were a record $3.5 billion, up 2.8 percent versus the third quarter 2011 on a 2.7 percent increase in total available seat miles (ASMs). Total revenue per ASM was a record 15.22 cents, up 0.1 percent versus the same period last year, driven by a 0.6 percent increase in passenger yields.
Total operating expenses in the third quarter were $3.3 billion, up 0.3 percent over the same period last year. Mainline cost per available seat mile (CASM) was 12.70 cents, down 1.8 percent on a 2.8 percent increase in mainline ASMs. Total average fuel price per gallon fell 2.4 percent versus last year to $3.07 per gallon. Excluding special charges, fuel, and profit sharing mainline CASM was 7.95 cents, down 1.4 percent versus the same period last year. Express CASM excluding special charges and fuel was 13.97 cents, down 4.5 percent on a 2.4 percent increase in Express ASMs.
Liquidity
As of September 30, 2012, the Company had $2.8 billion in total cash and investments, of which $347 million was restricted. That is up from $2.4 billion, of which $384 million was restricted, on September 30, 2011.
Special Items
The Company recognized $14 million of net operating special charges in the third quarter of 2012, primarily consisting of charges related to corporate transaction and auction rate securities arbitration costs. In addition, the Company recorded $67 million of net nonoperating special credits which included a $69 million gain related to the slot transaction with Delta Air Lines, Inc.
Notable Accomplishments
Operational Achievements
- Received a number one ranking by the U.S. Department of Transportation (DOT) in on-time performance among the four network carriers for the month of July, earning employees a $50 Triple Play incentive program payout. Year-to-date the airline has accrued $17 million for operational incentive payouts for its employees.
- Contributed to greenhouse gas emission reductions by expanding a fleet of electric ground support equipment at the airline's Philadelphia hub. By year's end, almost 40 percent of all ground support vehicles at Philadelphia will be electric, which surpasses all other East Coast airports.
Marketing and Customer Enhancements
- Began TSA PreCheck operations in its hub cities of Phoenix and Philadelphia, which provide expedited security screening service for select travelers. Earlier in the year this service began at the airline's Charlotte hub and at Washington, D.C.'s Reagan National Airport.
- Received permanent authority to operate daily, nonstop service between Mississippi's capital city, Jackson, and Reagan National Airport by the DOT. The route, which US Airways has flown since March 4 under temporary authority from the DOT, is the only nonstop service linking the State of Mississippi to the nation's capital.
- Began new daily, non-stop service from Philadelphia International Airport to Austin-Bergstrom International Airport and San Antonio International Airport. Customers in two of the largest cities in Texas now have more convenient access to Philadelphia and other destinations throughout the East Coast, Canada and Europe.
- Became the first domestic carrier to offer a premium meal option in Economy class on international flights. US Airways also refreshed its MarketPlace Menu with new snacks and beverages.
Corporate Citizenship
- Celebrated the 15th anniversary of the Do Crew, US Airways' corps of employee volunteers. Since its inception in 1997, thousands of employee volunteers have donated more than 150,000 hours of community service to nonprofits around the country.
- As part of a campaign called "30 Days for D.C.," which kicked off the airline's expanded service at Washington D.C, the Company presented the USO of Metropolitan Washington with a check for $10,000 and members of the Do Crew served pizza to active duty service members at DCA. Members of the Do Crew also teamed up with Keep America Beautiful to beautify the National Mall.
- Hosted the US Airways Education Foundation's first Suitcase Soirée in Charlotte, N.C. and raised more than $60,000 for scholarships and educational grants in the airline's hub and focus cities.
- Kicked off its annual "Hope Takes Flight" campaign benefiting the United Way with a goal of raising $1.4 million for those in need.
- Received from LATINA Style magazine the recognition of being named a Top 50 employer for the third year in a row; US Airways was the only airline named in the survey.
Analyst Conference Call/Webcast Details
US Airways will conduct a live audio webcast of its earnings call today at 12:30 p.m. ET, which will be available to the public on a listen-only basis at www.usairways.com under the Company Info >>Investor Relations tab. An archive of the call/webcast will be available in the Investor Relations portion of the website through Nov. 24.
2012 Investor Guidance
The Company will also update its investor relations guidance on its website (www.usairways.com) immediately following its 12:30 p.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 website. This update will also include the airline's capacity, fleet plan and estimated capital spending for the remainder of 2012.
About US Airways
US Airways, along with US Airways Shuttle and US Airways Express, operates more than 3,000 flights per day and serves 195 communities in the U.S., Canada, Mexico, Europe, the Middle East, the Caribbean, Central and South America. The airline employs more than 32,000 aviation professionals worldwide, operates the world's largest fleet of Airbus aircraft and is a member of the Star Alliance network, which offers its customers more than 21,500 daily flights to 1,356 airports in 193 countries. Together with its US Airways Express partners, the airline serves approximately 80 million passengers each year and operates hubs in Charlotte, N.C., Philadelphia and Phoenix, and a focus city in Washington, D.C. at Ronald Reagan Washington National Airport. Aviation Week and Overhaul & Maintenance magazine presented US Airways with the 2012 Aviation Maintenance, Repair and Overhaul (MRO) of the Year Award for demonstrating outstanding achievement and innovation in the area of technical operations. Military Times Edge magazine named US Airways as a Best of Vets employer in 2011 and 2012. US Airways was, for the third year in a row, the only airline included as one of the 50 best companies to work for in the U.S. by LATINA Style magazine's 50 Report. The airline also earned a 100 percent rating on the Human Rights Campaign Corporate Equality index for six consecutive years. The Corporate Equality index is a leading indicator of companies' attitudes and policies toward lesbian, gay, bisexual and transgender employees and customers. For more company information visit usairways.com, follow on Twitter @USAirways or at Facebook.com/USAirways. (LCCF)
Forward Looking Statements
Certain of the statements contained or referred to herein are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by words such as "may," "will," "expect," "intend," "anticipate," "believe," "estimate," "plan," "project," "could," "should," "would," "continue" and similar terms used in connection with statements regarding, among others, the outlook, expected fuel costs, revenue and pricing environment, and expected financial performance and liquidity position of the Company. Such statements include, but are not limited to, statements about future financial and operating results, the Company's plans, objectives, expectations and intentions, and other statements that are not historical facts. These statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties that could cause the Company's actual results and financial position to differ materially from these statements. Such risks and uncertainties include, but are not limited to, the following: the impact of significant operating losses in the future; downturns in economic conditions and their impact on passenger demand, booking practices and related revenues; the impact of the price and availability of fuel and significant disruptions in the supply of aircraft fuel; competitive practices in the industry, including the impact of industry consolidation; increased costs of financing, a reduction in the availability of financing and fluctuations in interest rates; the Company's high level of fixed obligations and ability to fund general corporate requirements, obtain additional financing and respond to competitive developments; any failure to comply with the liquidity covenants contained in financing arrangements; provisions in credit card processing and other commercial agreements that may affect the Company's liquidity; the impact of union disputes, employee strikes and other labor-related disruptions; the inability to maintain labor costs at competitive levels; interruptions or disruptions in service at one or more of the Company's hub airports or focus city; regulatory changes affecting the allocation of slots; the Company's reliance on third-party regional operators or third-party service providers; the Company's reliance on and costs, rights and functionality of third-party distribution channels, including those provided by global distribution systems, conventional travel agents and online travel agents; changes in government regulation; the impact of changes to the Company's business model the loss of key personnel or inability to attract and retain qualified personnel; the impact of conflicts overseas or terrorist attacks, and the impact of ongoing security concerns; the Company's ability to operate and grow its route network; the impact of environmental regulation; the Company's reliance on technology and automated systems and the impact of any failure or disruption of, or delay in, these technologies or systems; costs of ongoing data security compliance requirements and the impact of any significant data security breach; the impact of any accident involving the Company's aircraft or the aircraft of its regional operators; delays in scheduled aircraft deliveries or other loss of anticipated fleet capacity; the Company's dependence on a limited number of suppliers for aircraft, aircraft engines and parts; the Company's ability to operate profitably out of Philadelphia International Airport; the impact of weather conditions and seasonality of airline travel; the impact of possible future increases in insurance costs or reductions in available insurance coverage; the impact of global events that affect travel behavior, such as an outbreak of a contagious disease; the impact of foreign currency exchange rate fluctuations; the Company's ability to use NOLs and certain other tax attributes; and other risks and uncertainties listed from time to time in the Company's reports to and filings with the Securities and Exchange Commission ("SEC"). There may be other factors not identified above of which the Company is not currently aware that may affect matters discussed in the forward-looking statements, and may also cause actual results to differ materially from those discussed. The Company assumes no obligation to publicly update or supplement any forward-looking statement to reflect actual results, changes in assumptions or changes in other factors affecting such estimates other than as required by law. Additional factors that may affect the future results of the Company are set forth in the section entitled "Risk Factors" in the Company's Report on Form 10-Q for the quarter ended September 30, 2012 and in the Company's other filings with the SEC, which are available at www.usairways.com.
| US Airways Group, Inc. |
|||||||||||
| Condensed Consolidated Statements of Operations |
|||||||||||
| (In millions, except share and per share amounts) |
|||||||||||
| (Unaudited) |
|||||||||||
| 3 Months Ended |
Percent |
9 Months Ended |
Percent |
||||||||
| 2012 |
2011 |
Change |
2012 |
2011 |
Change |
||||||
| Operating revenues: |
|||||||||||
| Mainline passenger |
$ 2,319 |
$ 2,267 |
2.3 |
$ 6,881 |
$ 6,447 |
6.7 |
|||||
| Express passenger |
844 |
796 |
6.0 |
2,523 |
2,316 |
9.0 |
|||||
| Cargo |
35 |
40 |
(13.3) |
114 |
126 |
(10.0) |
|||||
| Other |
335 |
333 |
0.9 |
1,035 |
1,011 |
2.4 |
|||||
| Total operating revenues |
3,533 |
3,436 |
2.8 |
10,553 |
9,900 |
6.6 |
|||||
| Operating expenses: |
|||||||||||
| Aircraft fuel and related taxes |
893 |
905 |
(1.3) |
2,659 |
2,587 |
2.8 |
|||||
| Salaries and related costs |
609 |
577 |
5.5 |
1,888 |
1,726 |
9.4 |
|||||
| Express expenses: |
|||||||||||
| Fuel |
272 |
273 |
(0.5) |
830 |
803 |
3.4 |
|||||
| Other |
509 |
521 |
(2.2) |
1,556 |
1,573 |
(1.1) |
|||||
| Aircraft rent |
160 |
160 |
0.4 |
483 |
486 |
(0.7) |
|||||
| Aircraft maintenance |
171 |
163 |
4.5 |
506 |
508 |
(0.3) |
|||||
| Other rent and landing fees |
148 |
144 |
2.5 |
419 |
418 |
0.3 |
|||||
| Selling expenses |
122 |
123 |
(1.0) |
359 |
343 |
4.4 |
|||||
| Special items, net |
14 |
13 |
9.2 |
25 |
22 |
14.2 |
|||||
| Depreciation and amortization |
60 |
58 |
2.3 |
182 |
178 |
2.7 |
|||||
| Other |
307 |
319 |
(3.6) |
915 |
938 |
(2.5) |
|||||
| Total operating expenses |
3,265 |
3,256 |
0.3 |
9,822 |
9,582 |
2.5 |
|||||
| Operating income |
268 |
180 |
48.9 |
731 |
318 |
nm |
|||||
| Nonoperating income (expense): |
|||||||||||
| Interest income |
- |
1 |
(62.9) |
1 |
4 |
(70.8) |
|||||
| Interest expense, net |
(89) |
(85) |
5.8 |
(256) |
(241) |
6.6 |
|||||
| Other, net |
67 |
1 |
nm |
125 |
(7) |
nm |
|||||
| Total nonoperating expense, net |
(22) |
(83) |
(73.3) |
(130) |
(244) |
(46.6) |
|||||
| Income before income taxes |
246 |
97 |
nm |
601 |
74 |
nm |
|||||
| Income tax provision |
1 |
21 |
(95.3) |
1 |
21 |
(93.4) |
|||||
| Net income |
$ 245 |
$ 76 |
nm |
$ 600 |
$ 53 |
nm |
|||||
| Earnings per common share |
|||||||||||
| Basic |
$ 1.51 |
$ 0.47 |
$ 3.70 |
$ 0.33 |
|||||||
| Diluted |
$ 1.24 |
$ 0.41 |
$ 3.06 |
$ 0.33 |
|||||||
| Shares used for computation (in thousands): |
|||||||||||
| Basic |
162,418 |
162,090 |
162,286 |
161,999 |
|||||||
| Diluted |
204,603 |
201,278 |
203,532 |
163,916 |
|||||||
| Note: Percent change may not recalculate due to rounding. |
|||||||||||
| US Airways Group, Inc. |
||||||||||||||
| Operating Statistics |
||||||||||||||
| 3 Months Ended |
9 Months Ended |
|||||||||||||
| 2012 |
2011 |
Change |
2012 |
2011 |
Change |
|||||||||
| Mainline |
||||||||||||||
| Revenue passenger miles (millions) |
16,860 |
16,471 |
2.4 |
% |
47,564 |
46,301 |
2.7 |
% |
||||||
| Available seat miles (ASM) (millions) |
19,560 |
19,033 |
2.8 |
% |
56,665 |
55,184 |
2.7 |
% |
||||||
| Passenger load factor (percent) |
86.2 |
86.5 |
(0.3) |
pts |
83.9 |
83.9 |
- |
pts |
||||||
| Yield (cents) |
13.75 |
13.76 |
(0.1) |
% |
14.47 |
13.92 |
3.9 |
% |
||||||
| Passenger revenue per ASM (cents) |
11.85 |
11.91 |
(0.5) |
% |
12.14 |
11.68 |
3.9 |
% |
||||||
| Passenger enplanements (thousands) |
13,739 |
13,520 |
1.6 |
% |
40,927 |
39,823 |
2.8 |
% |
||||||
| Departures (thousands) |
112 |
112 |
(0.6) |
% |
341 |
340 |
0.2 |
% |
||||||
| Aircraft at end of period |
338 |
339 |
(0.3) |
% |
338 |
339 |
(0.3) |
% |
||||||
| Block hours (thousands) |
310 |
311 |
(0.5) |
% |
922 |
925 |
(0.3) |
% |
||||||
| Average stage length (miles) |
1,051 |
1,033 |
1.8 |
% |
1,010 |
999 |
1.1 |
% |
||||||
| Average passenger journey (miles) |
1,829 |
1,808 |
1.2 |
% |
1,726 |
1,710 |
0.9 |
% |
||||||
| Fuel consumption (gallons in millions) |
291 |
289 |
0.8 |
% |
841 |
833 |
1.1 |
% |
||||||
| Average aircraft fuel price including related taxes (dollars per gallon) |
3.06 |
3.13 |
(2.0) |
% |
3.16 |
3.11 |
1.7 |
% |
||||||
| Full-time equivalent employees at end of period |
30,845 |
31,327 |
(1.5) |
% |
30,845 |
31,327 |
(1.5) |
% |
||||||
| Operating cost per ASM (cents) |
12.70 |
12.93 |
(1.8) |
% |
13.12 |
13.06 |
0.5 |
% |
||||||
| Operating cost per ASM excluding special items (cents) |
12.63 |
12.87 |
(1.9) |
% |
13.08 |
13.02 |
0.5 |
% |
||||||
| Operating cost per ASM excluding special items and fuel (cents) |
8.06 |
8.11 |
(0.7) |
% |
8.39 |
8.33 |
0.7 |
% |
||||||
| Operating cost per ASM excluding special items, fuel and profit |
||||||||||||||
| sharing (cents) |
7.95 |
8.06 |
(1.4) |
% |
8.29 |
8.31 |
(0.3) |
% |
||||||
| Express* |
||||||||||||||
| Revenue passenger miles (millions) |
2,850 |
2,737 |
4.1 |
% |
8,112 |
8,025 |
1.1 |
% |
||||||
| Available seat miles (millions) |
3,644 |
3,559 |
2.4 |
% |
10,722 |
10,739 |
(0.2) |
% |
||||||
| Passenger load factor (percent) |
78.2 |
76.9 |
1.3 |
pts |
75.7 |
74.7 |
1.0 |
pts |
||||||
| Yield (cents) |
29.59 |
29.07 |
1.8 |
% |
31.10 |
28.86 |
7.8 |
% |
||||||
| Passenger revenue per ASM (cents) |
23.15 |
22.35 |
3.6 |
% |
23.54 |
21.56 |
9.2 |
% |
||||||
| Passenger enplanements (thousands) |
7,326 |
7,135 |
2.7 |
% |
21,166 |
20,892 |
1.3 |
% |
||||||
| Aircraft at end of period |
282 |
281 |
0.4 |
% |
282 |
281 |
0.4 |
% |
||||||
| Fuel consumption (gallons in millions) |
89 |
86 |
3.1 |
% |
261 |
257 |
1.5 |
% |
||||||
| Average aircraft fuel price including related taxes (dollars per gallon) |
3.07 |
3.18 |
(3.5) |
% |
3.18 |
3.13 |
1.8 |
% |
||||||
| Operating cost per ASM (cents) |
21.42 |
22.29 |
(3.9) |
% |
22.25 |
22.12 |
0.6 |
% |
||||||
| Operating cost per ASM excluding special items (cents) |
21.42 |
22.29 |
(3.9) |
% |
22.22 |
22.11 |
0.5 |
% |
||||||
| Operating cost per ASM excluding special items and fuel (cents) |
13.97 |
14.63 |
(4.5) |
% |
14.48 |
14.64 |
(1.1) |
% |
||||||
| Total Mainline & Express |
||||||||||||||
| Revenue passenger miles (millions) |
19,710 |
19,208 |
2.6 |
% |
55,676 |
54,326 |
2.5 |
% |
||||||
| Available seat miles (millions) |
23,204 |
22,592 |
2.7 |
% |
67,387 |
65,923 |
2.2 |
% |
||||||
| Passenger load factor (percent) |
84.9 |
85.0 |
(0.1) |
pts |
82.6 |
82.4 |
0.2 |
pts |
||||||
| Yield (cents) |
16.04 |
15.94 |
0.6 |
% |
16.89 |
16.13 |
4.7 |
% |
||||||
| Passenger revenue per ASM (cents) |
13.63 |
13.56 |
0.5 |
% |
13.96 |
13.29 |
5.0 |
% |
||||||
| Total revenue per ASM (cents) |
15.22 |
15.21 |
0.1 |
% |
15.66 |
15.02 |
4.3 |
% |
||||||
| Passenger enplanements (thousands) |
21,065 |
20,655 |
2.0 |
% |
62,093 |
60,715 |
2.3 |
% |
||||||
| Aircraft at end of period |
620 |
620 |
- |
% |
620 |
620 |
- |
% |
||||||
| Fuel consumption (gallons in millions) |
380 |
375 |
1.3 |
% |
1,102 |
1,090 |
1.2 |
% |
||||||
| Average aircraft fuel price including related taxes (dollars per gallon) |
3.07 |
3.14 |
(2.4) |
% |
3.17 |
3.11 |
1.7 |
% |
||||||
| Operating cost per ASM (cents) |
14.07 |
14.41 |
(2.4) |
% |
14.58 |
14.53 |
0.3 |
% |
||||||
| Operating cost per ASM excluding special items (cents) |
14.01 |
14.35 |
(2.4) |
% |
14.53 |
14.50 |
0.2 |
% |
||||||
| Operating cost per ASM excluding special items and fuel (cents) |
8.99 |
9.14 |
(1.7) |
% |
9.36 |
9.36 |
- |
% |
||||||
| Operating cost per ASM excluding special items, fuel and profit |
||||||||||||||
| sharing (cents) |
8.90 |
9.10 |
(2.2) |
% |
9.27 |
9.34 |
(0.7) |
% |
||||||
| * Express includes US Airways Group's wholly owned regional airline subsidiaries, Piedmont Airlines and PSA Airlines, as well as operating and financial results from capacity purchase agreements with Republic Airlines, Mesa Airlines, Air Wisconsin Airlines, Chautauqua Airlines and SkyWest Airlines. |
||||||||||||||
| Note: Amounts may not recalculate due to rounding. |
||||||||||||||
| Reconciliation of GAAP Financial Information to Non-GAAP Financial Information |
|||||||||||
| US Airways Group, Inc. (the "Company") is providing disclosure of the reconciliation of reported non-GAAP financial measures to their comparable financial measures on a GAAP basis. The Company believes that the non-GAAP financial measures provide investors the ability to measure financial performance excluding special items and profit sharing, which is more indicative of the Company's ongoing performance and is more comparable to measures reported by other major airlines. The Company believes that the presentation of mainline and express CASM excluding fuel is useful to investors as both the cost and availability of fuel are subject to many economic and political factors beyond the Company's control. Management uses mainline and express CASM excluding special items, fuel and profit sharing to evaluate the Company's operating performance. |
| 3 Months Ended |
9 Months Ended |
|||||||||
| 2012 |
2011 |
2012 |
2011 |
|||||||
| Reconciliation of Net Income Excluding Special Items |
(In millions, except share and per share amounts) |
(In millions, except share and per share amounts) |
||||||||
| Net income as reported |
$ 245 |
$ 76 |
$ 600 |
$ 53 |
||||||
| Special items: |
||||||||||
| Special items, net (1) |
14 |
13 |
25 |
22 |
||||||
| Express operating special items, net (2) |
- |
- |
3 |
1 |
||||||
| Nonoperating special items, net (3) |
(67) |
(15) |
(137) |
(7) |
||||||
| Non-cash tax provision (4) |
- |
21 |
- |
21 |
||||||
| Net income as adjusted for special items |
$ 192 |
$ 95 |
$ 491 |
$ 90 |
||||||
| 3 Months Ended |
9 Months Ended |
|||||||||
| Reconciliation of Basic and Diluted Earnings Per Share As |
2012 |
2011 |
2012 |
2011 |
||||||
| Adjusted for Special Items |
||||||||||
| Net income as adjusted for special items |
$ 192 |
$ 95 |
$ 491 |
$ 90 |
||||||
| Shares used for computation (in thousands): |
||||||||||
| Basic |
162,418 |
162,090 |
162,286 |
161,999 |
||||||
| Diluted |
204,603 |
201,278 |
203,532 |
201,662 |
||||||
| Earnings per share as adjusted for special items: |
||||||||||
| Basic |
$ 1.18 |
$ 0.59 |
$ 3.03 |
$ 0.56 |
||||||
| Diluted (5) |
$ 0.98 |
$ 0.51 |
$ 2.53 |
$ 0.54 |
||||||
| 3 Months Ended |
9 Months Ended |
|||||||||
| Reconciliation of Operating Income Excluding Special Items |
2012 |
2011 |
2012 |
2011 |
||||||
| Operating income as reported |
$ 268 |
$ 180 |
$ 731 |
$ 318 |
||||||
| Special items: |
||||||||||
| Special items, net (1) |
14 |
13 |
25 |
22 |
||||||
| Express operating special items, net (2) |
- |
- |
3 |
1 |
||||||
| Operating income as adjusted for special items |
$ 282 |
$ 193 |
$ 759 |
$ 341 |
||||||
| 3 Months Ended |
9 Months Ended |
|||||||||
| Reconciliation of Operating Cost per ASM Excluding Special |
2012 |
2011 |
2012 |
2011 |
||||||
| Items, Fuel and Profit Sharing - Mainline only |
||||||||||
| Total operating expenses |
$ 3,265 |
$ 3,256 |
$ 9,822 |
$ 9,582 |
||||||
| Less express expenses: |
||||||||||
| Fuel |
(272) |
(273) |
(830) |
(803) |
||||||
| Other |
(509) |
(521) |
(1,556) |
(1,573) |
||||||
| Total mainline operating expenses |
2,484 |
2,462 |
7,436 |
7,206 |
||||||
| Special items, net (1) |
(14) |
(13) |
(25) |
(22) |
||||||
| Mainline operating expenses, excluding special items |
2,470 |
2,449 |
7,411 |
7,184 |
||||||
| Aircraft fuel and related taxes |
(893) |
(905) |
(2,659) |
(2,587) |
||||||
| Mainline operating expenses, excluding special items and fuel |
1,577 |
1,544 |
4,752 |
4,597 |
||||||
| Profit sharing |
(21) |
(10) |
(54) |
(10) |
||||||
| Mainline operating expenses, excluding special items, fuel and |
||||||||||
| profit sharing |
$ 1,556 |
$ 1,534 |
$ 4,698 |
$ 4,587 |
||||||
| (In cents) |
||||||||||
| Mainline operating expenses per ASM |
$ 12.70 |
$ 12.93 |
$ 13.12 |
$ 13.06 |
||||||
| Special items, net per ASM (1) |
(0.07) |
(0.07) |
(0.04) |
(0.04) |
||||||
| Mainline operating expenses per ASM, excluding special items |
12.63 |
12.87 |
13.08 |
13.02 |
||||||
| Aircraft fuel and related taxes per ASM |
(4.57) |
(4.75) |
(4.69) |
(4.69) |
||||||
| Mainline operating expenses per ASM, excluding special items |
||||||||||
| and fuel |
8.06 |
8.11 |
8.39 |
8.33 |
||||||
| Profit sharing per ASM |
(0.11) |
(0.05) |
(0.10) |
(0.02) |
||||||
| Mainline operating expenses per ASM, excluding special items, |
||||||||||
| fuel and profit sharing |
$ 7.95 |
$ 8.06 |
$ 8.29 |
$ 8.31 |
||||||
| Note: Amounts may not recalculate due to rounding. |
||||||||||
| 3 Months Ended |
9 Months Ended |
|||||||||
| Reconciliation of Operating Cost per ASM Excluding Special |
2012 |
2011 |
2012 |
2011 |
||||||
| Items and Fuel - Express only |
||||||||||
| Total express operating expenses |
$ 781 |
$ 794 |
$ 2,386 |
$ 2,376 |
||||||
| Express operating special items, net (2) |
- |
- |
(3) |
(1) |
||||||
| Express operating expenses, excluding special items |
781 |
794 |
2,383 |
2,375 |
||||||
| Aircraft fuel and related taxes |
(272) |
(273) |
(830) |
(803) |
||||||
| Express operating expenses, excluding special items and fuel |
$ 509 |
$ 521 |
$ 1,553 |
$ 1,572 |
||||||
| (In cents) |
||||||||||
| Express operating expenses per ASM |
$ 21.42 |
$ 22.29 |
$ 22.25 |
$ 22.12 |
||||||
| Express operating special items, net per ASM (2) |
- |
- |
(0.03) |
(0.01) |
||||||
| Express operating expenses per ASM, excluding special items |
21.42 |
22.29 |
22.22 |
22.11 |
||||||
| Aircraft fuel and related taxes per ASM |
(7.45) |
(7.67) |
(7.74) |
(7.48) |
||||||
| Express operating expenses per ASM, excluding special items and fuel |
$ 13.97 |
$ 14.63 |
$ 14.48 |
$ 14.64 |
||||||
| Note: Amounts may not recalculate due to rounding. |
||||||||||
| 3 Months Ended |
9 Months Ended |
|||||||||
| Reconciliation of Operating Cost per ASM Excluding Special |
2012 |
2011 |
2012 |
2011 |
||||||
| Items, Fuel and Profit Sharing - Total Mainline and Express |
||||||||||
| Total operating expenses |
$ 3,265 |
$ 3,256 |
$ 9,822 |
$ 9,582 |
||||||
| Special items: |
||||||||||
| Special items, net (1) |
(14) |
(13) |
(25) |
(22) |
||||||
| Express operating special items, net (2) |
- |
- |
(3) |
(1) |
||||||
| Total operating expenses, excluding special items |
3,251 |
3,243 |
9,794 |
9,559 |
||||||
| Fuel: |
||||||||||
| Aircraft fuel and related taxes - mainline |
(893) |
(905) |
(2,659) |
(2,587) |
||||||
| Aircraft fuel and related taxes - express |
(272) |
(273) |
(830) |
(803) |
||||||
| Total operating expenses, excluding special items and fuel |
2,086 |
2,065 |
6,305 |
6,169 |
||||||
| Profit sharing |
(21) |
(10) |
(54) |
(10) |
||||||
| Total operating expenses, excluding special items, fuel |
||||||||||
| and profit sharing |
$ 2,065 |
$ 2,055 |
$ 6,251 |
$ 6,159 |
||||||
| (In cents) |
||||||||||
| Total operating expenses per ASM |
$ 14.07 |
$ 14.41 |
$ 14.58 |
$ 14.53 |
||||||
| Special items per ASM: |
||||||||||
| Special items, net (1) |
(0.06) |
(0.06) |
(0.04) |
(0.03) |
||||||
| Express operating special items, net (2) |
- |
- |
(0.01) |
- |
||||||
| Total operating expenses per ASM, excluding special items |
14.01 |
14.35 |
14.53 |
14.50 |
||||||
| Fuel per ASM: |
||||||||||
| Aircraft fuel and related taxes - mainline |
(3.85) |
(4.01) |
(3.95) |
(3.92) |
||||||
| Aircraft fuel and related taxes - express |
(1.17) |
(1.21) |
(1.23) |
(1.22) |
||||||
| Total operating expenses per ASM, excluding special items |
||||||||||
| and fuel |
8.99 |
9.14 |
9.36 |
9.36 |
||||||
| Profit sharing per ASM |
(0.09) |
(0.04) |
(0.08) |
(0.01) |
||||||
| Total operating expenses per ASM, excluding special items, |
||||||||||
| fuel and profit sharing |
$ 8.90 |
$ 9.10 |
$ 9.27 |
$ 9.34 |
||||||
| Note: Amounts may not recalculate due to rounding. |
||||||||||
| FOOTNOTES: |
||||||||||||||
| 1) |
Special items, net in the 2012 and 2011 third quarter and nine month periods consisted of charges primarily related to corporate transaction and auction rate securities arbitration costs. |
|||||||||||||
| 2) |
The 2012 nine month period consisted of $3 million in net special charges related to the ratification of a new Piedmont fleet and passenger services contract. |
|||||||||||||
| 3) |
The 2012 third quarter and nine month periods consisted of a $69 million and $142 million gain, respectively, related to the slot transaction with Delta Air Lines, Inc. The 2012 nine month period also included $3 million in debt prepayment penalties and non-cash write offs of certain debt issuance costs related to the refinancing of two Airbus aircraft. |
|||||||||||||
| The 2011 third quarter and nine month periods each consisted of a $15 million credit in connection with an award received in an arbitration involving investments in auction rate securities. The 2011 nine month period also included $6 million in debt prepayment penalties and non-cash write offs of certain debt issuance costs related to the refinancing of five Airbus aircraft as well as $2 million of losses related to investments in auction rate securities. |
||||||||||||||
| 4) |
The 2011 third quarter and nine month periods each consisted of a special non-cash tax charge of $21 million as a result of the sale of our final remaining investment in auction rate securities in July 2011. This charge recognized in the statement of operations the tax provision that was recorded in other comprehensive income, a subset of stockholders' equity, in the fourth quarter of 2009. |
|||||||||||||
| 5) |
The 2012 third quarter and nine month period diluted EPS excludes $8 million and $23 million of interest, net of profit sharing, respectively, related to the Company's 7.25% and 7% convertible notes. The 2011 third quarter diluted EPS excludes $7 million of interest, net of profit sharing, related to the Company's 7.25% and 7% convertible notes. The 2011 nine month period diluted EPS excludes $19 million of interest, net of profit sharing, related to the Company's 7.25% convertible notes. |
|||||||||||||
| US Airways Group, Inc. |
|||
| Condensed Consolidated Balance Sheets |
|||
| (In millions) |
|||
| (Unaudited) |
|||
| September 30, 2012 |
December 31, 2011 |
||
| Assets |
|||
| Current assets |
|||
| Cash and cash equivalents |
$ 2,435 |
$ 1,947 |
|
| Accounts receivable, net |
423 |
327 |
|
| Materials and supplies, net |
297 |
235 |
|
| Prepaid expenses and other |
671 |
540 |
|
| Total current assets |
3,826 |
3,049 |
|
| Property and equipment |
|||
| Flight equipment |
4,817 |
4,591 |
|
| Ground property and equipment |
985 |
907 |
|
| Less accumulated depreciation and amortization |
(1,674) |
(1,501) |
|
| 4,128 |
3,997 |
||
| Equipment purchase deposits |
241 |
153 |
|
| Total property and equipment |
4,369 |
4,150 |
|
| Other assets |
|||
| Other intangibles, net |
545 |
543 |
|
| Restricted cash |
347 |
365 |
|
| Other assets |
233 |
228 |
|
| Total other assets |
1,125 |
1,136 |
|
| Total assets |
$ 9,320 |
$ 8,335 |
|
| Liabilities and Stockholders' Equity |
|||
| Current liabilities |
|||
| Current maturities of debt and capital leases |
$ 417 |
$ 436 |
|
| Accounts payable |
391 |
386 |
|
| Air traffic liability |
1,220 |
910 |
|
| Accrued compensation and vacation |
268 |
176 |
|
| Accrued taxes |
183 |
163 |
|
| Other accrued expenses |
989 |
1,089 |
|
| Total current liabilities |
3,468 |
3,160 |
|
| Noncurrent liabilities and deferred credits |
|||
| Long-term debt and capital leases, net of current maturities |
4,152 |
4,130 |
|
| Deferred gains and credits, net |
301 |
307 |
|
| Employee benefit liabilities and other |
640 |
588 |
|
| Total noncurrent liabilities and deferred credits |
5,093 |
5,025 |
|
| Stockholders' equity |
|||
| Common stock |
2 |
2 |
|
| Additional paid-in capital |
2,131 |
2,122 |
|
| Accumulated other comprehensive income |
2 |
2 |
|
| Accumulated deficit |
(1,376) |
(1,976) |
|
| Total stockholders' equity |
759 |
150 |
|
| Total liabilities and stockholders' equity |
$ 9,320 |
$ 8,335 |
|
SOURCE US Airways Group, Inc.
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