US Airways Group, Inc. reported its first quarter 2009 results. Net loss for the first quarter was $103 million, or ($0.90) per share, which includes net special credits totaling $157 million. This compares to a net loss of $237 million, or ($2.58) per share for the same period last year. Excluding net special credits, the Company reported a net loss of $260 million for its first quarter 2009, or ($2.28) per share. This compares to a net loss excluding special credits of $240 million, or ($2.61) per share for the same period last year.

The effects of fuel hedging significantly impacted the first quarter 2009 results. Excluding net special credits and net realized losses/gains on fuel hedging transactions, the Company reported operating income of $8 million and a net loss of $63 million for its first quarter 2009. This compares to an operating loss and net loss of $287 million and $321 million, respectively, for the same period last year. 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 Chairman and CEO Doug Parker stated, “Our first quarter loss reflects the weakness in the global economy that has negatively impacted revenues throughout our industry. The steps we have taken to adapt to this environment are having a significant positive impact, though, as evidenced by our significant improvement in earnings excluding special items and fuel hedges.

“We’ve had great success with a la carte pricing and our relatively higher domestic enplanements versus our largest competitors means that we have a greater ability to capitalize on this opportunity both in the current economic environment and also when the economy turns around. We’ve pulled down an appropriate amount of capacity and will explore additional reductions if the economic environment warrants such action. And, we’ve raised new capital in a very tight capital market to help withstand a prolonged economic downturn.

“Our team of 33,000 employees continues to work together to run a terrific operation. For the first quarter of the year, we posted an 80 percent on-time arrival rate, improved baggage handling by approximately 50 percent, and reduced DOT complaints by approximately 28 percent - all while running one of the most efficient schedules of the ’Big Six’ hub-and-spoke airlines. We couldn’t be more proud of our team and their continued commitment to our customers.

“Because of the global economic weakness and uncertainty, 2009 remains difficult to forecast. However, the steps we have taken and the outstanding work of our team has us well positioned to meet any challenges that may lie ahead,” concluded Parker.

Revenue and cost comparisons
Total revenues in the first quarter were down 13.5 percent versus the first quarter of 2008 on a 6.8 percent decline in total available seat miles (ASMs). Total revenue per available seat mile was 12.02 cents, down 7.2 percent versus the same period last year. Mainline passenger revenue per available seat mile (PRASM) in the first quarter was 9.49 cents, down 10.9 percent versus the same period last year. Express PRASM was 15.95 cents, down 12.7 percent versus the first quarter 2008. Total mainline and Express PRASM was 10.58 cents, which was down 11.1 percent versus the first quarter 2008.

Total expenses in the first quarter were down 18.3 percent over the same period last year due to a 53.2 percent decrease in mainline and Express fuel expense. Mainline cost per available seat mile (CASM) in the first quarter was 11.05 cents, down 12.0 percent versus the same period last year. Excluding fuel, unrealized and realized gains/losses on fuel hedging instruments, and special items, mainline CASM was 8.63 cents, up 0.7 percent from the same period last year, on a 7.4 percent decline in mainline ASMs.

Chief Financial Officer Derek Kerr stated, “As we have decreased our mainline capacity, we have worked diligently to manage our costs. Those results are evidenced in the modest increase in our first quarter unit costs (mainline CASM excluding fuel, unrealized and realized gains/losses on fuel hedging instruments, and special items), despite a seven percent decrease in mainline ASMs.”