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USAIR GROUP REPORTS 1992 RESULTS

 ARLINGTON, Va., Jan. 27 /PRNewswire/ -- USAir Group (NYSE: U) today reported a net loss of 1.2 billion, after extraordinary charges, on revenue of $6.7 billion, which compares with a net loss of $305.3 million on $6.5 billion in revenue for 1991.
 For the fourth quarter, USAir Group reported a net loss, after extraordinary charges, of $254 million on revenue of $1.6 billion. This compares with net earnings of $1.6 million for the same quarter of 1991.
 Results for 1992 include $982 million in one-time, pre-tax charges, among them the cumulative effect of a retroactive change in method of accounting for post-retirement benefits (FAS 106) and write-downs in the value of Boeing 727 and BAe 146 aircraft that had been withdrawn from service. Both are non-cash charges for 1992. The adjusted pre-tax loss for the quarter and year also includes an estimated cost of $45 million from a week-long strike in October.
 In the fourth quarter 1992 USAir Group recorded $141.5 million of charges related to the grounding and/or disposal of aircraft. In addition, the fourth quarter included a charge of $26 million for implementing FAS 106.
 Loss per common share before the cumulative effect of FAS 106, and after preferred stock dividend requirements for 1992 was $13.88 on 47.0 million shares outstanding. This compares with a loss of $7.62 per share on 45.9 million shares for 1991. Per share loss for the fourth quarter of 1992 was $5.66. Loss per share for the fourth quarter of 1991 was 24 cents.
 Adjustment for Extraordinary Items
 Before adjusting for extraordinary charges, USAir Group's operating loss for the year 1992 was $166.4 million compared with $219.4 million for 1991. The pre-tax loss for 1992, before extraordinary charges, was $404.5 million, compared with a pre-tax loss before extraordinary gains and credits, of $460.7 million in 1991.
 For the fourth quarter, USAir Group's operating loss, less extraordinary items, was $31.7 million which compares with an operating loss of $14.4 million for the same period of 1991. The adjusted pre-tax loss for the quarter was $94.5 million as compared with pre-tax loss of $76.5 million in 1991.
 "We are encouraged by the year-over-year improvements in our results before the extraordinary items, a trend due in large part to significant cost-cutting measures effected during 1992," said USAir Group Chairman, President and CEO Seth E. Schofield. "While we are concerned about the continuing propensity of the industry to offer too much capacity in the face of a weak demand, we are seeing positive trends at USAir in unit revenues and unit costs, and believe those trends will continue in 1993."
 The adoption of FAS 106 also resulted in a retroactive after-tax charge of $628 million on Jan. 1, 1992. USAir group's quarterly results for 1992 have been restated as a result of adopting these new accounting standards (see the following schedules).
 In addition to the extraordinary items discussed above, the year- over-year comparison of actual results affected by the $117.6 million limit in available tax credit to be recognized in 1992, all of which was recorded upon the adoption of FAS 106. Because of this limit, USAir Group cannot currently recognize the full tax benefit associated with 1992 results.
 USAir Group, Inc.
 Consolidated Statements of Operations
 Adjusted for Extraordinary Items
 (unaudited)
 (dollars in millions)
 Three Months
 Ended Dec. 31 Better (Worse)
 1992 1991 Amount Percent
 Operating Revenues $1,634.8 $1,668.7 $ (33.9) (2.0)
 Operating Expenses 1,789.6 1,607.5 (182.1) (11.3)
 Operating Profit (Loss) (154.8) 61.2 (216.0) N/M
 Extraordinary Items
 -- Add (Deduct) (123.1) 75.6 -- --
 Adjusted Operating
 Profit (Loss) (31.7) (14.4) (17.3) N/M
 Non-Operating Income
 (Expense) (99.3) (58.3) (41.0) (70.3)
 Pre-Tax Profit (Loss) (254.1) 2.9 (257.0) N/M
 Extraordinary Non-Op
 -Add (Deduct) (36.5) 3.8 -- --
 Adjusted Pre-Tax
 Profit (Loss) (94.5) (76.5) (18.0) (23.5)
 FAS 106 Transition Expense -- -- -- --
 Tax Provision (Credit) -- 1.3 -- --
 Net Income (Loss)(A) $(254.1) $ 1.6 (255.7) N/M
 USAir Group, Inc.
 Consolidated Statements of Operations
 Adjusted for Extraordinary Items
 (unaudited)
 (dollars in millions)
 Years
 Ended Dec. 31 Better (Worse)
 1992 1991 Amount Percent
 Operating Revenues $6,686.4 $6,514.1 $ 172.3 2.6
 Operating Expenses 7,022.9 6,687.6 (335.3) (5.0)
 Operating Profit (Loss) (336.5) (173.5) (163.0) (93.9)
 Extraordinary Items
 -- Add (Deduct) (170.1) 45.9
 Adjusted Operating
 Profit (Loss) (166.4) (219.4) 53.0 24.2
 Non-Operating Income
 (Expense) (264.3) (241.3) (23.0) (9.5)
 Pre-Tax Profit (Loss) (600.8) (414.8) (186.0) (44.8)
 Extraordinary Non-Op
 -Add (Deduct) (26.2) --
 Adjusted Pre-Tax
 Profit (Loss) (404.5) (460.7) 56.2 12.2
 FAS 106 Transition Expense 745.7 --
 Tax Provision (Credit) (117.6) (109.5)
 Net Income (Loss)(A) $(1,228.9) $(305.3) (923.6) N/M
 Three Months Years
 Ended Dec. 31 Ended Dec. 31
 1992 1991 1992 1991
 Extraordinary Items -- Operating Expense:
 -- FAS 106 -- 1992
 Expense, Net $ (25.7) $ -- $(102.7) $ --
 -- Reserve for Non-
 Operating Aircraft (107.4) (21.0) (107.4) (21.0)
 -- Pension Avoidance/
 1991 Gain 10.0 107.0 40.0 107.0
 -- 1991 Early Retirement
 Incentive -- -- -- (21.6)
 -- Other -- (10.4) -- (18.5)
 Total $ (123.1) $ 75.6 $(170.1) $ 45.9
 Extraordinary Items -- Non-Operating Expense:
 -- Loss on Sale of MD-
 82 Aircraft $ (34.1) $ -- $ (34.1) $ --
 -- Gain on Sale of GAG
 Subsidiaries -- -- 10.3 --
 -- Other (2.4) 3.8 (2.4) --
 Total $ (36.5) $ 3.8 $ (26.2) --
 (A) Includes 10/92 IAM Strike impact ($45) million (Revenue ($65) million and Expense ($20) million)
 N/M -- not meaningful
 USAIR GROUP, INC.
 Consolidated Statements of Operations
 (Unaudited)
 (In thousands, except per share amounts)
 Periods ended Three Months Years
 Dec. 31, 1992 1991 1992 1991
 Operating Revenues
 Passenger
 Transportation $1,521,214 $1,545,914 $6,198,409 $6,033,831
 Cargo and Freight 43,360 41,939 172,360 164,517
 Other 70,254 80,872 315,643 315,723
 Total Operating
 Revenues 1,634,828 1,668,725 6,686,412 6,514,071
 Operating Expenses
 Personnel Costs 607,272 546,980 2,589,854 2,496,313
 Aviation Fuel 188,864 200,660 759,257 805,020
 Travel Agency
 Commissions 139,210 138,921 556,822 528,763
 Aircraft Maintenance 118,019 111,324 379,870 413,725
 Aircraft Rent 193,066 87,154 528,671 377,705
 Other Rent and
 Landing Fees 109,152 88,803 405,842 349,221
 Depreciation and
 Amortization 83,886 79,682 309,488 299,226
 Other, net 350,132 354,004 1,493,085 1,417,605
 Total Operating
 Expenses 1,789,601 1,607,528 7,022,889 6,687,578
 Operating Income
 (Loss) (154,773) 61,197 (336,477) (173,507)
 Other Income (Expense)
 Interest Income 2,622 6,113 9,898 18,627
 Interest Expense (62,762) (66,394) (248,691) (259,126)
 Interest Capitalized 6,050 6,831 27,802 35,565
 Other, net (45,178) (4,815) (53,350) (36,360)
 Other Income
 (Expense), Net (99,268) (58,265) (264,341) (241,294)
 Income (Loss) Before Taxes
 and Cumulative Effect
 of Accounting Change (254,041) 2,932 (600,818) (414,801)
 Income Tax Credit -- 1,301 -- (109,543)
 Income (Loss) Before
 Cumulative Effect of
 Accounting Change (254,041) 1,631 (600,818) (305,258)
 Cumulative Effect of Change
 in Method of Accounting for
 Postretirement Benefits
 Other than Pensions
 (Net of Tax Benefit
 of $117,571) -- -- (628,098) --
 Net Income (Loss) (254,041) 1,631 (1,228,916) (305,258)
 Preferred Dividend
 Requirement (12,942) (12,942) (51,766) (44,306)
 Net Loss Applicable
 to Common
 Stockholders $(266,983) $(11,311) $(1,280,682)$(349,564)
 Loss Per Common Share
 Before Accounting
 Change $(5.66) $(0.24) $(13.88) $ (7.62)
 Effect of Accounting
 Change -- -- (13.35) --
 Loss Per Share $(5.66) $(0.24) $(27.23) $ (7.62)
 Shares Used for
 Computation (000) 47,197 46,354 47,026 45,864
 USAIR, INC.
 (A Wholly Owned Subsidiary of USAir Group, Inc.)
 Consolidated Statements of Operations
 (Unaudited)
 (Dollars in thousands)
 Three Months Ended
 Dec. 31, Percent
 1992 1991 Change
 Operating Revenues
 Passenger
 Transportation $1,411,804 $1,457,504 (3.1)
 Cargo and Other
 Airline 117,877 96,315 22.4
 Non-airline -- -- NM
 Total Operating
 Revenues 1,529,681 1,553,819 (1.6)
 Operating Expenses
 Personnel Costs 584,328 523,559 11.6
 Aviation Fuel 180,150 193,156 (6.7)
 Travel Agency
 Commissions 130,687 131,971 (1.0)
 Aircraft Maintenance 105,311 101,261 4.0
 Aircraft Rent 184,454 80,694 NM
 Other Rent and
 Landing Fees 105,744 85,426 23.8
 Depreciation and
 Amortization 78,575 74,054 6.1
 Other Airline, Net 331,201 312,599 6.0
 Non-Airline, Net -- 1,417 NM
 Total Operating
 Expenses 1,700,450 1,504,137 13.1
 Operating Loss (170,769) 49,682 NM
 Other Income (Expense)
 Interest Income 10,590 9,473 11.8
 Interest Expense (57,572) (54,470) 5.7
 Interest Capitalized 6,045 6,499 (7.0)
 Other, net (43,938) (3,288) NM
 Other Income
 (Expense), Net (84,875) (41,786) NM
 Loss Before Taxes and Cumulative
 Effect of Accounting Change (255,644) 7,896 NM
 Income Tax Credit -- 7,616 NM
 Loss before cumulative effect
 of accounting change (255,644) 280 NM
 Cumulative effect of change in method
 of accounting for postretirement
 benefits other than pensions (net
 of income tax benefit of $106,721) -- -- NM
 Net Loss (255,644) 280 NM
 Airline Operating Statistics
 Revenue Passengers
 (Thousands) (A) 12,644 14,300 (11.6)
 Average Passenger
 Journey (Miles) (A) 642.8 615.3 4.5
 Revenue Passenger
 Miles (Millions) (A) 8,128 8,799 (7.6)
 Available Seat Miles
 (Millions) (A) 14,489 14,409 0.6
 Passenger Load Factor (A) 56.1 pct. 61.1 pct. (5.0) pts.
 Yield (A) 17.37 cents 16.56 cents 4.9
 Average Stage Length (Miles) (A) 526 501 5.0
 Cost Per Available Seat Mile 10.94 cents 10.92 cents (0.2)
 Total Revenue Passenger
 Miles (Millions) 8,194 8,872 (7.6)
 Total Available Seat
 Miles (Millions) 14,566 14,494 0.5
 Revenue Aircraft Miles
 (Thousands) (A) 114 115 (0.9)
 Breakeven Load Factor (Net) 60.3 pct. 64.2 pct. (3.9) pts.
 Cost of Fuel Per Gallon 63.21 cents 67.47 cents (6.3)
 Gallons of Fuel
 Consumed (Millions) 285 286 (0.3)
 Years Ended
 Dec. 31, Percent
 1992 1991 Change
 Operating Revenues
 Passenger
 Transportation $5,785,830 $5,687,892 1.7
 Cargo and Other
 Airline 449,792 361,278 24.5
 Non-airline -- 19,798 NM
 Total Operating
 Revenues 6,235,622 6,068,968 (2.7)
 Operating Expenses
 Personnel Costs 2,492,424 2,392,698 4.2
 Aviation Fuel 726,605 775,358 (6.3)
 Travel Agency
 Commissions 524,927 502,089 4.5
 Aircraft Maintenance 318,986 362,401 (12.0)
 Aircraft Rent 496,061 351,881 41.0
 Other Rent and
 Landing Fees 391,215 336,142 16.4
 Depreciation and
 Amortization 286,998 273,293 5.0
 Other Airline, Net 1,373,951 1,257,409 9.3
 Non-Airline, Net -- 33,473 NM
 Total Operating
 Expenses 6,611,167 6,284,744 5.2
 Operating Loss (375,545) (215,776) 74.0
 Other Income (Expense)
 Interest Income 48,866 33,829 44.5
 Interest Expense (229,643) (201,811) 13.8
 Interest Capitalized 27,181 34,398 (21.0)
 Other, net (60,535) (33,566) 80.3
 Other Income
 (Expense), Net (214,131) (167,150) 28.1
 Loss Before Taxes and Cumulative
 Effect of Accounting Change (589,676) (382,926) 54.0
 Income Tax Credit -- (98,831) NM
 Loss before cumulative effect
 of accounting change (589,676) (284,095) NM
 Cumulative effect of change in method
 of accounting for postretirement
 benefits other than pensions (net
 of income tax benefit
 of $106,721) 638,822 -- NM
 Net Loss (1,228,498) (284,095) NM
 Airline Operating Statistics
 Revenue Passengers
 (Thousands) (A) 54,655 55,600 (1.7)
 Average Passenger
 Journey (Miles) (A) 642.2 613.7 4.6
 Revenue Passenger
 Miles (Millions) (A) 35,097 34,120 2.9
 Available Seat Miles
 (Millions) (A) 59,667 58,261 2.4
 Passenger Load Factor (A) 58.8 pct. 58.6 pct. 0.2 pts.
 Yield (A) 16.49 cents 16.67 cents (1.1)
 Average Stage Length (Miles) (A) 516 495 4.2
 Cost Per Available Seat Mile 10.83 cents 10.78 cents 0.5
 Total Revenue Passenger
 Miles (Millions) 35,436 34,398 3.0
 Total Available Seat
 Miles (Millions) 60,052 58,574 2.5
 Revenue Aircraft Miles
 (Thousands) (A) 473 468 1.1
 Breakeven Load Factor (Net) 63.2 pct. 62.7 pct. 0.5 pts.
 Cost of Fuel Per Gallon 61.44 cents 66.41 cents (7.5)
 Gallons of Fuel
 Consumed (Millions) 1,183 1,168 1.3
 (A) Scheduled service
 NM Not meaningful
 USAir Group, Inc.
 Adjustment For FAS 106
 For The Year Ended Dec. 31, 1992
 (unaudited)
 (dollars in millions except per share amounts)
 RESTATED
 1st 2nd 3rd 4th 1992
 Qtr Qtr Qtr Qtr Year
 Operating Revenues $1,651.3 $1,699.9 $1,700.4 $1,634.8 $6,686.4
 Operating Expenses
 Before Impact of
 FAS 106 1,675.6 1,743.6 1,737.0 1,763.9 6,920.2
 FAS 106 Impact to
 Personnel Costs 25.7 25.7 25.7 25.7 102.7
 After Impact of
 FAS 106 1,701.3 1,769.3 1,762.7 1,789.6 7,022.9
 Operating Loss
 Before Impact of
 FAS 106 (24.3) (43.7) (36.6) (129.1) (233.8)
 FAS 106 Impact (25.7) (25.7) (25.7) (25.7) (102.7)
 After Impact of
 FAS 106 (50.0) (69.4) (62.3) (154.8) (336.5)
 Loss Before Income
 Taxes and Cumulative
 Effect of Accounting
 Change
 Before Impact of
 FAS 106 (84.5) (105.4) (79.8) (228.3) (498.1)
 FAS 106 Impact (25.7) (25.7) (25.7) (25.7) (102.7)
 After Impact of
 FAS 106 (110.2) (131.1) (105.5) (254.0) (600.8)
 Income Tax Credit
 Before Impact of
 FAS 106 (21.4) (20.5) (24.4) (28.6) (94.9)
 FAS 106 Impact 21.4 20.5 24.4 28.6 94.9
 After Impact of FAS 106 -- -- -- -- --
 Loss Before Cumulative
 Effect of Accounting Change
 Before Impact of
 FAS 106 (63.1) (84.9) (55.4) (199.7) (403.2)
 FAS 106 Impact (47.1) (46.2) (50.1) (54.3) (197.6)
 After Impact of
 FAS 106 (110.2) (131.1) (105.5) (254.0) (600.8)
 Cumulative Effect of
 Accounting Change
 -- FAS 106 (628.1) -- -- -- (628.1)
 Net Loss $ (738.3) $(131.1) $(105.5) $(254.0) $(1,228.9)
 Loss Per Common Share
 As Reported $ (1.63) $(2.08) $(1.45)
 After Impact of
 FAS 106: Before
 Cumulative
 Adjustment (2.63) (3.07) (2.52) (5.66) (13.88)
 Cumulative
 Adjustment (13.44) -- -- -- (13.35)
 Net Loss $ (16.07) $(3.07) $(2.52) $(5.66) $(27.23)
 NOTE: Numbers may not add due to rounding
 -0- 1/27/93
 /CONTACT: USAir Corporate Communications, 703-418-5100 or 310-417-1294 (Western Region)/
 (U)


CO: USAir Group ST: Virginia IN: AIR SU: ERN

MP -- DC001 -- 9486 01/27/93 09:33 EST
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