US Airways to Adjust System Capacity in May

ARLINGTON, Va., Feb. 25 /PRNewswire-FirstCall/ — US Airways announced today that it will adjust systemwide capacity, slowing growth, by returning 11 Boeing 737 aircraft to lessors beginning in May, as the benefits of increased aircraft productivity expand across its network.

Persistent and sustained high fuel costs as well as the weak revenue environment caused by industry overcapacity and low fares also played a significant role in the company’s decision.

Overall, the return of aircraft will result in a net reduction of only 14 flights systemwide compared to the February 2005 schedule, and the discontinuation of service to two destinations, as most service will be replaced with regional jets or by increased utilization of the mainline existing fleet. Even with the May 2005 capacity adjustments, systemwide available seat miles (ASMs) are expected to increase between 4 and 6 percent year-over-year.

The May schedule includes a small change in service at US Airways’ Charlotte, N.C., and Philadelphia hubs as well as the discontinuation of some flights at Fort Lauderdale/Hollywood International Airport.

With the new schedule, US Airways will operate one less daily departure between Charlotte and Atlanta, Raleigh-Durham, N.C., Orlando and West Palm Beach, Fla. In Philadelphia, US Airways will operate one less Hartford, Conn., Buffalo, N.Y., Norfolk, Va., Seattle, Fort Lauderdale and Orlando, Fla., flight. Additionally, three Philadelphia-Tampa, Fla., flights will be discontinued.

Nonstop service between Fort Lauderdale and Panama City, Panama; San Salvador, El Salvador; San Juan and Newark also will be discontinued. With the exception of Panama City and San Salvador, which US Airways no longer will serve, customers in these cities still will be able to connect to Fort Lauderdale via other US Airways cities.

Despite these reductions, US Airways has tripled the number of destinations served (from five to 15) at Fort Lauderdale, with 80 percent more capacity, since February 2004.

Pending the outcome of the company’s voluntary early-out program and retirement decisions, at this time, US Airways does not foresee employee furloughs as a result of these actions (with the exception of San Salvador and Panama City).

“The revenue and fuel environment requires that we move quickly to retire some of our older aircraft and weakest flying that simply cannot be sustained,” said Bruce Ashby, US Airways executive vice president of marketing and planning. “We are pleased with the positive impact of our new productivity and scheduling enhancements and this decision will have minimal impact on our customers. We must make some difficult decisions in order to complete our restructuring and position the company for success.”

Certain of the statements contained herein should be considered “forward- looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which reflect the current views of US Airways Group (the “Company”) with respect to current events and financial performance. You can identify these statements by forward-looking words such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “estimate,” “plan,” “could,” “should,” and “continue” or similar words. These forward-looking statements may also use different phrases. Such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the Company’s operations and business environment which may cause the actual results of the Company to be materially different from any future results, express or implied, by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: the ability of the Company to continue as a going concern; the ability of the Company to obtain and maintain any necessary financing for operations and other purposes, whether debtor-in-possession financing or other financing; the ability of the Company to maintain adequate liquidity; the ability of the Company to absorb escalating fuel costs; the Company’s ability to obtain court approval with respect to motions in the Chapter 11 proceedings prosecuted by it from time to time; the ability of the Company to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 proceedings; risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the Company to propose and confirm one or more plans of reorganization, to appoint a Chapter 11 trustee or to convert the cases to Chapter 7 cases; the ability of the Company to obtain and maintain normal terms with vendors and service providers; the Company’s ability to maintain contracts that are critical to its operations; the potential adverse impact of the Chapter 11 proceedings on the Company’s liquidity or results of operations; the ability of the Company to operate pursuant to the terms of its financing facilities (particularly the financial covenants); the ability of the Company to fund and execute its Transformation Plan during the Chapter 11 proceedings and in the context of a plan of reorganization and thereafter; the ability of the Company to attract, motivate and/or retain key executives and associates; the ability of the Company to attract and retain customers; the ability of the Company to maintain satisfactory labor relations; demand for transportation in the markets in which the Company operates; economic conditions; labor costs; financing availability and costs; security-related and insurance costs; competitive pressures on pricing (particularly from lower-cost competitors) and on demand (particularly from low-cost carriers and multi-carrier alliances); weather conditions; government legislation and regulation; impact of the continued military activities in Iraq; other acts of war or terrorism; and other risks and uncertainties listed from time to time in the Company’s reports to the 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 update such estimates to reflect actual results, changes in assumptions or changes in other factors affecting such estimates other than as required by law. Similarly, these and other factors, including the terms of any reorganization plan ultimately confirmed, can affect the value of the Company’s various prepetition liabilities, common stock and/or other equity securities. Accordingly, the Company urges that the appropriate caution be exercised with respect to existing and future investments in any of these liabilities and/or securities.

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