Yeah, and USAirways was soooooo profitable before the merger.
AWA carried the entire profit for the merged airline in 2005 ..and was profitable in 2003 & 2004.
"The Company recently undertook a review of its fuel hedge accounting as part of
its preparation to complete its annual report on Form 10-K for the year ended
Dec. 31, 2004. During this review, the Company determined that, due to recent
business and regulatory developments, its formal hedge documentation did not
meet the requirements imposed by the Statement of Financial Accounting Standards
No. 133, "Accounting for Derivative Instruments and Hedging Activities" (SFAS
No. 133) to hedge its fuel purchases as cash flow hedges. SFAS No. 133 provides
guidance to companies when accounting for financial derivative instruments. In
addition, management also concluded that the accounting entries made at each
quarter end in 2003 and 2004 needed to be corrected to properly reflect the fair
value of open derivative instruments in the balance sheets and statements of
stockholders' equity and comprehensive income of Holdings and AWA. Accordingly,
the Company will restate the Company's and the airline's balance sheet and
statement of changes in stockholders' equity and comprehensive income (loss) as
of and for the year ended Dec. 31, 2003, as well as their interim financial
results during 2003 and 2004. Those restatements will recognize, as part of its
net income or loss during these periods, the non-cash gains and losses on these
financial derivative instruments. The restatements will not impact the Company's
or the airline's cash position at any date."
AMERICA WEST UPDATES PREVIOUSLY REPORTED FINANCIAL RESULTS 2003 2004
