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Table of Contents

US Airways Group, Inc.

Notes to Consolidated Financial Statements — (Continued)

Weighted

Number of Average

2005 Plan Shares Exercise Price

Balance at December 31, 2004: — —

Options Granted 2,034,000 $ 23.08

Awards Granted 696,375 —

Exercised — —

Options Canceled (61,500) $ 20.64

Awards Canceled (9,200) —

Balance at December 31, 2005: 2,659,675 $ 23.15

At December 31, 2005, options and awards outstanding and exercisable by price range for all plans are as follows:

Weighted Options Weighted

Options Average Weighted and Awards Average

and Awards Remaining Average Currently Exercise

Range of Exercise Prices Outstanding Contractual Life Exercise Price Exercisable Price

$0.00 to $0.00 687,175 2.03 — — —

$0.01 to $9.21 485,879 6.82 $ 7.39 485,879 $ 7.39

$9.22 to $24.05 2,145,485 8.73 $ 17.24 887,735 $ 13.94

$24.06 to $26.06 645,790 7.95 $ 25.56 645,790 $ 25.56

$26.07 to $43.48 1,439,920 7.62 $ 29.14 518,920 $ 31.96

$43.49 to $70.76 570,204 2.81 $ 52.41 570,204 $ 52.41

5,974,453 6.89 $ 21.58 3,108,528 $ 25.40

There were 2,428,880 and 2,041,680 stock options exercisable as of December 31, 2004 and 2003, respectively. The per share weighted-average fair value

of stock options granted during 2005, 2004 and 2003 was $8.50, $10.90 and $4.67, respectively, on the date of grant using the Black-Scholes option pricing

model with the following weighted-average assumptions:

2005 2004 2003

Risk free interest rate 3.4% 3.4% 2.8%

Expected dividend yield 0% 0% 0%

Expected life (in years) 4.0 4.8 4.8

Volatility 54% 54% 70%

The stock option plans also provide for the issuance of stock and grant of stock options to non-employee directors. US Airways Group has granted options

to purchase 273,442 shares of US Airways Group common stock to members of the Board of Directors who are not employees of US Airways Group. The

options have a ten-year contractual term and are exercisable six months after the date of grant. As of December 31, 2005, 165,394 options were outstanding

and exercisable at prices ranging from $4.68 to $70.76 per share. 156