US Airways Group, Inc. Reports Fourth Quarter and Full Year 2005 Results

The analyst's are starting to update recommendations.....

Standard & Poor's:
February 21, 2006
11:40 am EST... S&P REITERATES HOLD OPINION ON SHARES OF US AIRWAYS GROUP (LCC 32.9***): In a very complicated earnings release, LCC’s Q4 per-share loss is $3.26 vs. a loss of $4.66, wider than our $2.00 loss forecast. Before one-time items, the loss was $1.72. We think LCC is making major progress in numerous areas; the co. reiterates that it expects to be profitable in ’06 before merger costs. Passenger demand remains strong. We are keeping our ’06 EPS estimate at $1.50, and raising our target price to $35 from $32, valuing the stock at 23X that estimate, above peers. We think LCC is doing a commendable job, but see much of this already priced into the stock. /J.Corridore

Lehman Brothers
US Airways Group (LCC - $ 32.50) 1-Overweight
Change of Earnings Forecast
Still See Opportunity - Investment Conclusion

The risk reward in LCC remains favorable from our perspective. We believe the combination of revenue strength and lower than anticipated nonfuel costs has positive implications for earnings power and relative valuation.

Summary
! Reported 4Q ($1.72), slightly ahead of our ($2.15).
Revenue slightly lower, but more than offset by better cost performance.
! Cost performance and outlook better than anticipated; we now estimate a 7% gap between heritage America West and US Airways versus more than 15% a year ago.
! Fuel guidance suggests a bit more fuel cost than we had modeled, especially in 1Q, but not changing commodity price assumptions.
! Slightly raising 2006 and 2007 estimates; valuation not materially impacted. Target remains $40.
! Overhang and trading liquidity concerns may dominate near-term performance, but we ultimately believe the shares will trade on earnings potential. On that basis, we like LCC relative to others in the group.

Prudential Equity Group
HIGHLIGHTS
• US Airways Group reported a fourth quarter fiscal 2005 net loss, excluding items, of $138 million, or $1.72 per share. This compares to our estimate of a loss per share of $1.55 and consensus loss per share of $1.93.
• Total revenue and operating expenses were in-line with our estimates. Within operating expenses there was nothing materially different than our expectations, only variances related to this being the first quarter with US Airways and America West reporting as a combined entity.
• Management was fairly specific with its guidance and is projecting full-year 2006 to be profitable. This expectation for a profit excludes an estimated $110 million in merger-related charges. Guidance was presented as such, that including the $110 million charge US Airways would unlikely remain profitable for the full year. We are adjusting our 2006 estimates based on the new guidance.
• We continue to rate US Airways Neutral Weight, as we believe the shares will move with the airline group in general.

Jim
 
The following is a link from AZCENTRAL.COM today. However, IMHO I really don't believe fuel is the entire problem...CUSTOMER SERVICE SUCKS!!! BAGGAGE ---well just ask LAS and PHX baggage office people what this past week has been like! It all boils down to serving the public in a way that makes people WANT to come to US Airways. All the advertising $ spent is still not enough when you have people treating pax with no respect or empathy to their plights that WE have caused them. Unfortunately, now US West (HP) has the old US Airways reputation...and as a HP emp I'm embarrassed! If their are people who truly care about people and their jobs, (just look at WN employees and their profitability each year-and the payscale and company profit sharing, and the way management treats employees), then perhaps this company will work. But not at this point...it seems to be crumbling around us and no one will recognize the mismanagement going on from res-to rampers on up! IMHO of course.

http://www.azcentral.com/business/articles...sairways22.html
 
Get your figures straight kid.. They lost $537 million for the year, $261 for 4Q 2005. The $537 million includes a charge of $202 million for a one accounting change in the way the west side operations handles maintance expenses (i.e. they knew they had no chance of profits so they took a bath and expensed some accruals.)

More embarrasing though was the $60M unrealized loss on the fuel hedge.
 
Get your figures straight kid.. They lost $537 million for the year, $261 for 4Q 2005. The $537 million includes a charge of $202 million for a one accounting change in the way the west side operations handles maintance expenses (i.e. they knew they had no chance of profits so they took a bath and expensed some accruals.)

More embarrasing though was the $60M unrealized loss on the fuel hedge.

GET MY FIGURES STRAIGHT!? I put the link to the article....I'M NOT THE CFO!!! Tell the writer of that article to get her figures straight. Good grief! What the heck is with the attitude anyway? Get over it! Day-gone I'm so sick of attitudes! Prime example as to why the flying public hates US! And where pray-tell do you get your figures? Just trying to make a point is all. I'm outta here..these boards are getting pathetic anymore. Sarcasm seems to be the going thing with US. Amazing to say the least! Standing back watching it all crumble! Absolutely amazing! It could be so simple...but that's too much to ask from the airline industry.

Tell ya what. I was raised to learn by example. Successful people learn from successful people. Until the airline industry learns from the one and only successful airline out there today..WN...we're all in a heap of trouble and no amount of investor $$ is gonna keep us out of it. Time to wake up and be a leader! But maybe that's too much to ask!

BTW....I'M NOT A "KID"!!! Don't demean people on these boards by calling them "kids" or anything else for that matter! That's just plain rude!!!

I'm disgusted! This is almost laughable anymore. At the rate things are going...I give it 5 years before more concessions, etc are goin to be asked of us. Don't be surprised!
 
GET MY FIGURES STRAIGHT!? I put the link to the article....I'M NOT THE CFO!!! Tell the writer of that article to get her figures straight. Good grief! What the heck is with the attitude anyway? Get over it! Day-gone I'm so sick of attitudes!

Looks to me like you're the one with the bad attitude. No one said anything bad in this thread until you showed up with
Unfortunately, now US West (HP) has the old US Airways reputation...and as a HP emp I'm embarrassed!

I must've missed where you took that from the article.
 
These guys must be bigger thieves and liars than I thought or maybe they are just not the talent they think they are. (I'll bank on the former) Any company who can cut salaries in half, steal pensions, eliminate perks, use bankruptcy to wipe out creditors, outsouce work and still report a loss yet always find blame have got to be kidding.
The extra fuel costs are a drop in the bucket compared to what they've paid their buddies handling the bankruptcy, (like the Seabury crooks) as well as their handpicked thieves running the regionals. No mention of record growth at those companies. Money trails usually smell, and this one stinks to high heaven!

In 2005, all U did was CUT. Utility was eliminated by March. Another 1200 f/as left through 2005 on VFLR. The contracts were all implemented ASAP (even before it was in hard copy). The losses should not have equated to a half a billion. The merger should have helped the balance sheet. Many workers were eliminated between Oct.-Dec. and consolidation of depts. They wiped out CCY. The pension,and benefits dept was wiped out along with the IMMS, and LTD was outsourced.2006, all the execs and management will receive moving expenses etc...and I can't visulize a "break even" by year's end.

The analyst are trying to pump up investors sentiment on Wall Street.

If I personally wanted to throw money at an airline stock it would be CO and/or LUV. Why would anyone buy U at 25 or 30 when LUV is somewhere in the teens, and has not reported a loss in any quarter in 30 years.
 
CCY was still very much in existence through the end of 2005. I wouldn't expect any savings from the HQ move until probably Q2-3 of this year, once all the moving expenses are paid.
 
CCY existed...there just were no folks working there.

How I know? I was there and it was a ghost town. And if you tried your damndest to call anyone in benefits, you couldn't get anyone, not even a secretary. After all, Jerry Glass testified in BK court in 2005 that management and the personnel were fleeing U and going elsewhere for jobs and the company desperately needed bonus and severance money to the tune of $51 Million to retain management. And the severance was awarded by the courts in Sept. I was there too, up close, and second row.

But how would you know? You claim to be a customer. :ph34r: Or has that changed and now you are employed holding specific information...
 
But how would you know? You claim to be a customer. :ph34r: Or has that changed and now you are employed holding specific information...

Here we go again. The closure has been extensively covered by the DC/Northern Va. press, so that's how I know.