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USAIR GROUP REPORTS RESULTS FOR FOURTH QUARTER, YEAR-END 1991

 USAIR GROUP REPORTS RESULTS FOR FOURTH QUARTER, YEAR-END 1991
 ARLINGTON, Va., Jan. 22 /PRNewswire/ -- USAir Group (NYSE: U) today reported net income of $1.6 million for the fourth quarter of 1991 on revenue of $1.7 billion. In the fourth quarter of 1990, USAir Group had a net loss of $221.1 million on revenue of $1.7 billion. The principal factors contributing to the difference between the 1991 fourth quarter results and a year earlier are:
 -- A one-time pre-tax gain of $107 million related to the freeze of the fully-funded salaried employee pension plan in 1991. This plan will be replaced in 1993 by a defined contribution pension program.
 -- A $139 million pre-tax improvement in fuel expense.
 -- A $90 million pre-tax restructuring charge that was taken in the fourth quarter of 1990.
 For the year 1991, USAir Group reported a net loss of $305.3 million on revenue of $6.5 billion versus a net loss for the year 1990 of $454.4 million on revenue of $6.6 billion. The same factors that contributed to the difference between the fourth quarter results in 1990 and 1991 also apply to the difference in annual results. On an annual basis, pre-tax fuel expense was $205 million less in 1991 than in 1990.
 "While the airline industry remains severely affected by the economic recession, we have seen some improvement in our operations in the fourth quarter," said USAir President and Chief Executive Officer Seth E. Schofield. "Comparative results reflect the positive impact of system restructuring and cost reduction programs that we initiated in 1991."
 "Based on our forecast, 1992 will be a difficult year for the airline industry. We will, however, continue to grow USAir during the coming 12 months by entering new markets and expanding our service in existing markets. We will add about 20 aircraft to our fleet, including 10 newly-acquired Boeing 757-200s, the first two of which went into service on Jan. 7. Much of our planned domestic growth will occur in heavily-traveled markets in the Northeastern part of the nation with particular emphasis on New York City and our newly-acquired facilities at LaGuardia Airport. Our international growth will continue to focus on linking important foreign destinations to our major hubs."
 Loss per common share after preferred dividend requirements for the fourth quarter of 1991 was 24 cents. For the year 1991 the loss per common share was $7.62. These results compare with per share losses of $5.06 for the fourth quarter of 1990 and $10.89 for the year 1990.
 USAir, Inc., the principal subsidiary of USAir Group, had fourth quarter net income of $280,000 on revenue of $1.6 billion, which compares with a net loss of $213 million on revenue of $1.5 billion for the same quarter of 1990.
 The airline's net loss for the year 1991 was $284.1 million on revenue of $6.1 billion. In 1990, USAir had a net loss of $427 million on revenue of $6.1 billion.
 At the operating level USAir had a profit of $49.7 million in the fourth quarter of 1991, which compares with an operating loss of $279.2 million in the same quarter of 1990. For the year 1991, USAir had an operating loss of $215.8 million versus an operating loss of $542.0 million for 1990.
 Results for USAir Group and USAir are subject to completion of the year-end audit.
 USAIR GROUP, INC.
 Consolidated Statements of Operations
 (Unaudited)
 (In thousands, except per share amounts)
 Periods ended Three Months Years
 Dec. 31, 1991 1990 1991 1990
 Operating Revenues
 Passenger
 Transportation $1,545,914 $1,530,124 $6,033,831 $6,072,802
 Cargo and Freight 41,939 43,271 164,517 159,742
 Other 80,872 90,281 315,723 326,062
 Total Operating
 Revenues 1,668,725 1,663,676 6,514,071 6,558,606
 Operating Expenses
 Personnel Costs 546,980 670,337 2,496,313 2,617,407
 Aviation Fuel 200,660 340,147 805,020 1,009,544
 Travel Agency
 Commissions 138,921 133,148 528,763 515,772
 Aircraft Maintenance 85,824 103,772 388,225 406,962
 Aircraft Rent 95,754 88,617 386,305 335,742
 Other Rent and
 Landing Fees 88,803 77,762 349,221 319,232
 Depreciation and
 Amortization 75,682 74,324 295,226 287,083
 Special Charges -- 101,626 -- 137,972
 Other, net 374,904 344,062 1,438,505 1,430,015
 Total Operating
 Expenses 1,607,528 1,933,795 6,687,578 7,059,729
 Operating Income
 (Loss) 61,197 (270,119) (173,507) (501,123)
 Other Income (Expense)
 Interest Income 6,113 1,475 18,627 4,172
 Interest Expense (66,394) (62,997) (259,126) (225,600)
 Interest Capitalized 6,831 13,536 35,565 65,592
 Other, net (4,815) (6,458) (36,360) 1,511
 Other Income
 (Expense), Net (58,265) (54,444) (241,294) (154,325)
 Income (Loss) Before
 Taxes 2,932 (324,563) (414,801) (655,448)
 Income Tax Provision
 (Credit) 1,301 (103,503) (109,543) (201,000)
 Net Income (Loss) $1,631 $(221,060) $(305,258) $(454,448)
 Preferred Dividend
 Requirement (12,942) (8,279) (44,306) (33,115)
 Net Loss Applicable
 to Common
 Stockholders $(11,311) $(229,339) $(349,564) $(487,563)
 Loss Per Common
 Share $(0.24) $(5.06) $(7.62) $(10.89)
 Shares Used for
 Computation (000) 46,354 45,295 45,864 44,763
 USAIR, INC.
 (A Wholly Owned Subsidiary of USAir Group, Inc.)
 Consolidated Statements of Operations
 (Unaudited)
 (Dollars in thousands)
 Three Months Ended
 Dec. 31, Percent
 1991 1990 Change
 Operating Revenues
 Passenger
 Transportation $1,457,504 $1,445,719 0.8
 Cargo and Other
 Airline 96,315 86,540 11.3
 Non-airline -- 16,542 NM
 Total Operating
 Revenues 1,553,819 1,548,801 0.3
 Operating Expenses
 Personnel Costs 523,559 643,043 (18.6)
 Aviation Fuel 193,156 328,200 (41.1)
 Travel Agency
 Commissions 131,971 126,849 4.0
 Aircraft Maintenance 75,761 90,329 (16.1)
 Aircraft Rent 89,294 82,178 8.7
 Other Rent and
 Landing Fees 85,426 75,169 13.6
 Depreciation and
 Amortization 70,054 66,960 4.6
 Special Charges -- 101,626 NM
 Other Airline, Net 333,499 297,967 11.9
 Non-Airline, Net 1,417 15,680 (91.0)
 Total Operating
 Expenses 1,504,137 1,828,001 (17.7)
 Operating Income
 (Loss) 49,682 (279,200) NM
 Other Income (Expense)
 Interest Income 9,473 7,912 19.7
 Interest Expense (54,470) (48,003) 13.5
 Interest Capitalized 6,499 13,379 (51.4)
 Other, net (3,288) (5,050) (34.9)
 Other Income
 (Expense), Net (41,786) (31,762) 31.6
 Income (Loss) Before
 Taxes 7,896 (310,962) NM
 Income Tax Provision
 (Credit) 7,616 (98,078) NM
 Net Income (Loss) $280 $(212,884) NM
 Airline Operating Statistics
 Revenue Passengers
 (Thousands) (A) 14,300 14,699 (2.7)
 Average Passenger
 Journey (Miles) (A) 615.3 599.9 2.6
 Revenue Passenger
 Miles (Millions) (A) 8,799 8,818 (0.2)
 Available Seat Miles
 (Millions) (A) 14,409 15,038 (4.2)
 Passenger Load Factor (A) 61.1 pct. 58.6 pct. 2.5 pts.
 Yield (A) 16.56 cents 16.39 cents 1.0
 Average Stage Length (Miles) (A) 501 474 5.7
 Cost Per Available Seat Mile 10.96 cents 11.34 cents (3.4)
 Total Revenue Passenger
 Miles (Millions) 8,872 8,862 0.1
 Total Available Seat
 Miles (Millions) 14,494 15,090 (3.9)
 Breakeven Load Factor (Net) 64.2 pct. 66.5 pct. (2.3) pts.
 Cost of Fuel Per Gallon 67.47 cents 104.59 cents (35.5)
 Gallons of Fuel
 Consumed (Millions) 286 314 (8.9)
 Years Ended
 Dec. 31, Percent
 1991 1990 Change
 Operating Revenues
 Passenger
 Transportation $5,687,892 $5,753,353 (1.1)
 Cargo and Other
 Airline 361,278 331,351 9.0
 Non-airline 19,798 52,829 (62.5)
 Total Operating
 Revenues 6,068,968 6,137,533 (1.1)
 Operating Expenses
 Personnel Costs 2,392,698 2,509,360 (4.6)
 Aviation Fuel 775,358 975,501 (20.5)
 Travel Agency
 Commissions 502,089 491,739 2.1
 Aircraft Maintenance 336,901 357,794 (5.8)
 Aircraft Rent 360,481 313,306 15.1
 Other Rent and
 Landing Fees 336,142 306,554 9.7
 Depreciation and
 Amortization 269,293 260,765 3.3
 Special Charges -- 137,972 NM
 Other Airline, Net 1,278,309 1,274,948 0.3
 Non-Airline, Net 33,473 51,583 (35.1)
 Total Operating
 Expenses 6,284,744 6,679,522 (5.9)
 Operating Income
 (Loss) (215,776) (541,989) (60.2)
 Other Income (Expense)
 Interest Income 33,829 23,977 41.1
 Interest Expense (201,811) (161,689) 24.8
 Interest Capitalized 34,398 64,615 (46.8)
 Other, net (33,566) (150) NM
 Other Income
 (Expense), Net (167,150) (73,247) NM
 Income (Loss) Before
 Taxes (382,926) (615,236) (37.8)
 Income Tax Provision
 (Credit) (98,831) (188,030) (47.4)
 Net Income (Loss) $(284,095) $(427,206) (33.5)
 Airline Operating Statistics
 Revenue Passengers
 (Thousands) (A) 55,600 60,059 (7.4)
 Average Passenger
 Journey (Miles) (A) 613.7 591.9 3.7
 Revenue Passenger
 Miles (Millions) (A) 34,120 35,551 (4.0)
 Available Seat Miles
 (Millions) (A) 58,261 59,484 (2.1)
 Passenger Load Factor (A) 58.6 pct. 59.8 pct. (1.2 pts.)
 Yield (A) 16.67 cents 16.18 cents 3.0
 Average Stage Length (Miles) (A) 495 469 5.5
 Cost Per Available Seat Mile 10.78 cents 10.84 cents (0.6)
 Total Revenue Passenger
 Miles (Millions) 34,398 35,752 (3.8)
 Total Available Seat
 Miles (Millions) 58,574 59,716 (1.9)
 Breakeven Load Factor (Net) 62.7 pct. 64.5 pct. (1.8) pts.
 Cost of Fuel Per Gallon 66.41 cents 76.01 cents (12.6)
 Gallons of Fuel
 Consumed (Millions) 1,168 1,283 (9.0)
 (A) Scheduled service.
 NM Not meaningful.
 -0- 1/22/92 R
 /CONTACT: USAir Corporate Communications, 703-418-5100, or 213-417-1294 (Western Region)/
 (U) CO: USAir Group ST: Virginia IN: AIR SU: ERN


DC-SB -- DC027 -- 2496 01/22/92 16:59 EST
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