US Airways 2004 Annual Report Download - page 29

Table of Contents
The 2002 results include charges of $19.0 million primarily related to the restructuring completed on January 18, 2002 and an operating gain of
$4.9 million related to a change in the Company's vacation policy for certain administrative employees. The Company also recognized a nonoperating charge
of $2.8 million related to the write-off of the Company's investment in an e-commerce entity and a nonoperating gain of $8.5 million related to the federal
government assistance received under the Air Transportation Safety and System Stabilization Act in 2002. AWA did not record an income tax benefit for the
year ended December 31, 2004 as it currently expects to continue to record a full valuation allowance on any future tax benefits until it has achieved several
quarters of consecutive profitable results coupled with an expectation of continued profitability. Consolidated income tax expense for financial reporting
purposes was $0.1 million for 2003 on pretax income of $57.5 million. This compares to a consolidated income tax benefit for financial reporting purposes of
$35.1 million for the 2002 period on a consolidated loss before income tax benefit and cumulative effect of a change in accounting principle of
$214.8 million. The benefit in 2002 is primarily due to additional carryback losses made available as a result of the enactment of new tax legislation allowing
an extended carryback period under the Job Creation and Workers Assistance Act of 2002.
AWA
The following discussion provides an analysis of AWA's results of operations and reasons for material changes therein for the years ended December 31,
2004, 2003 and 2002.
AMERICA WEST AIRLINES, INC.
Statements of Operations
For the Years Ended December 31, 2004, 2003 and 2002
(in thousands)
2004 2003 2002
Operating revenues:
Passenger $ 2,196,627 $ 2,113,629 $ 1,929,444
Cargo 28,233 26,914 27,574
Other 113,417 113,274 89,545
Total operating revenues 2,338,277 2,253,817 2,046,563
Operating expenses:
Salaries and related costs 655,185 658,042 601,870
Aircraft rents 304,343 297,518 295,016
Other rents and landing fees 167,772 154,598 158,290
Aircraft fuel 557,098 375,996 299,284
Agency commissions 25,191 34,457 49,953
Aircraft maintenance materials and repairs 205,580 223,266 252,691
Depreciation and amortization 54,354 66,865 75,201
Special charges (credits), net (15,432) 14,370 19,030
Other 423,890 402,613 451,444
Total operating expenses 2,377,981 2,227,725 2,202,779
Operating income (loss) (39,704) 26,092 (156,216)
Nonoperating income (expenses):
Interest income 14,169 13,249 17,551
Interest expense, net (86,488) (86,743) (79,529)
Federal government assistance — 81,255 8,466
Gain (loss) on disposition of property and equipment 1,460 151 (1,852)
Gain on sale of investment — 9,762 —
Gain (loss) on derivative instruments, net 23,782 10,746 (656)
Other, net 1,547 6,888 215
Total nonoperating income (expenses), net (45,530) 35,308 (55,805)
Income (loss) before income taxes (benefit) and cumulative effect of change in accounting principle $ (85,234) $ 61,400 $ (212,021)
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