US Airways Group, Inc. reported a net loss for the fourth quarter of $220 million, excluding special charges totaling $321 million. Special charges in the fourth quarter 2008 included $234 million of unrealized losses resulting from mark-to-market adjustments on fuel hedging instruments. On a GAAP basis, the company reported a net loss of $541 million for its fourth quarter 2008, or $4.74 per share, compared to a loss of $79 million, or $0.87 for the same period last year.

For the full year 2008, the company reported a net loss of $803 million, or $8.01 per share, which excluded special charges totaling $1.4 billion. In addition to $496 million of unrealized losses resulting from mark-to-market adjustments on fuel hedging instruments, special charges for the year also include a $622 million non-cash charge to write off the goodwill created by the merger of US Airways Group, Inc. and America West Holdings Corporation.

On a GAAP basis, the company reported a net loss of $2.2 billion, or $22.06 per share, compared to a net profit of $427 million, or $4.52 per diluted share, in 2007. Doug Parker, group chairman and CEO, said that results reflected the “staggering increase in fuel prices” that plagued 2008. Mainline passenger revenue per available seat mile (PRASM) in the fourth quarter was 10.68 cents, up 1.6 percent over the same period last year. Express PRASM was 18.45 cents, down 0.2 percent over the fourth quarter 2007. Total mainline and Express PRASM for US Airways Group was 12.01 cents, which was up 1.6 percent over the fourth quarter 2007 on a 5.1 percent decline in total available seat miles (ASMs). Total revenue per available seat mile in the fourth quarter was 13.44 cents, up 4.8 percent over the same period last year due largely to the increase in a la carte revenues.

Mainline cost per available seat mile (CASM) at US Airways Group in the fourth quarter was 14.62 cents, up 21.5 percent versus the same period last year. Fuel was the largest driver of this increase as average mainline fuel price per gallon including realized gains and losses on fuel hedging instruments increased 33.8 percent. Excluding fuel, unrealized and realized gains/losses on fuel hedging instruments, and net special items, mainline CASM was 8.49 cents, up 5 percent from the same period last year, on a 5.9 percent decline in mainline ASMs. For more information, visit www.usairways.com.

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