US
AIRWAYS GROUP 3RD QUARTER NET LOSS IS $30 MILLION COMPARED TO
$85 MILLION LOSS IN 3RD QUARTER OF 1999
ARLINGTON, Va., Oct. 18,
2000 --
US Airways Group, Inc., reported a net loss for the third
quarter today of $30 million on revenues of $2.4 billion.
Operating income for the quarter was $5 million. Diluted loss
per common share was 45 cents.
"Our third quarter results are
disappointing, reflecting very high fuel costs and increased
competition on a significant number of routes. US Airways
employees, however, are to be congratulated for a marked
year-over-year improvement in our operational performance,
especially at a time when we continue to bring a large number
of new aircraft into the system," said US Airways
President and CEO Rakesh Gangwal.
US Airways Chairman Stephen M. Wolf said:
"We are continuing to work closely with the experts at
the U.S. Department of Justice, U.S. Department of
Transportation, the European Commission and the state
attorneys general on their reviews of our merger with United
Airlines, which we believe will bring vastly increased breadth
of service to communities on the US Airways system."
US Airways Group’s operating income of
$5 million compares to a loss of $111 million in the third
quarter of 1999. Operating revenues for the quarter of $2.4
billion were an improvement of 13.3 percent over 1999 while
operating expenses of $2.4 billion were 7.4 percent higher
than the previous year. The net loss for the quarter of $30
million was an improvement of 64.7 percent over the net loss
of $85 million in 1999. The diluted loss per common share of
45 cents compares to a loss of $1.19 in 1999.
Total revenue passenger miles for the
quarter were up 19.7 percent over the third quarter of 1999 as
available seat miles rose 17.2 percent. The load factor for
the period was 72.9 percent, up by 1.5 percentage points over
the third quarter of 1999. Revenue per available seat mile of
12.15 cents was 3.5 percent below that of 1999 while cost per
available seat mile of 12.28 cents was lower by 9.5 percent.
The cost of aviation fuel per gallon was 98.27 cents, an
increase of 54.7 percent, while the number of gallons consumed
increased 16.7 percent.
For the first nine months of 2000,
operating income was $34 million, down 86.8 percent from 1999.
Operating revenues of $6.9 billion were higher by 7.0 percent
while operating expenses of $6.9 billion were higher by 10.9
percent, largely reflecting increased costs for fuel. The net
loss for the first nine months of $168 million is 160.4
percent below the net income of $278 million for the
comparable period of 1999, which includes a gain of $274
million related to the sale of the Company’s interest in
Galileo International, Inc. The diluted loss per common share
of $2.52 is 169 percent below the diluted earnings per share
of $3.65 for 1999.
Total revenue passenger miles for the
first nine months were up by 11.1 percent while total
available seat miles increased 11.1 percent. The load factor
for the period of 70.7 percent was unchanged from 1999.
Revenue per available seat mile for the first three quarters
of 2000 was 12.67 cents, down 4.2 percent, while cost per
available seat mile of 12.75 cents was lower by 1.7 percent.
Cost of aviation fuel per gallon was 91.04 cents, a 71.1
percent increase over 1999, while the number of gallons of
fuel consumed increased by 9.6 percent.
US Airways will conduct its third quarter
conference call this afternoon at 1 p.m. Interested parties
are invited to listen to US Airways President and CEO Gangwal
and other company senior officers as they discuss the earnings
results with analysts from the investment community. The
conference call will be held via a special webcast on US
Airways’ website usairways.com at the following
location: http://investor.usairways.com/medialist.cfm
The webcast will last approximately one
hour. Interested parties should log on at least five minutes
prior to the call in order to register. An archive of the
conference call also will be available on the US Airways web
site through Jan. 17, 2001.
To listen to the call, Real
Player must be installed. Real Player can be downloaded
through the US Airways website by following the instructions
shown on the Presentations page (URL listed above). The
download is free and should take approximately 10 minutes.
Reporters
needing additional information should contact US Airways
Corporate Communications at (703) 872-5100.
Statement of Operations
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Productivity measures the relationship between actual inputs used (both
physical inputs and costs) and actual outputs achieved; the lower the inputs for a given
set of outputs or the higher the outputs for a given set of inputs, the higher the
productivity.