US Airways 2005 Annual Report Download - page 30

Table of Contents
Our business is subject to weather factors and seasonal variations in airline travel, which cause our results to fluctuate.
Our operations are vulnerable to severe weather conditions in parts of our network that could disrupt service, create air traffic control problems, decrease
revenue, and increase costs, such as during hurricane season in the Caribbean and Southeast United States, and snow and severe winters in the Northeast
United States. In addition, the air travel business historically fluctuates on a seasonal basis. Due to the greater demand for air and leisure travel during the
summer months, revenues in the airline industry in the second and third quarters of the year tend to be greater than revenues in the first and fourth quarters of
the year. The results of operations of the combined company will likely reflect weather factors and seasonality, and therefore quarterly results are not
necessarily indicative of those for an entire year and the prior results of America West Holdings and US Airways Group are not necessarily indicative of the
Company's future results.
Employee benefit plans represent significant continuing costs to the sponsoring employers.
US Airways Group and its subsidiaries sponsor employee benefit plans and arrangements that provide retirement, medical, disability and other benefits to
our employees and participating retirees. Many of the benefits provided under these plans are mandated under various collective bargaining agreements, while
others are provided on a voluntary basis as a means to recruit and retain valuable employees. While we recently terminated certain defined benefit pension
plans and significantly reduced post-retirement medical benefits and other retiree benefits, the benefit obligations associated with the remaining employee
benefit plans and related costs represent a substantial continuing cost to the sponsors. In addition, many of these employee benefit plans are subject to federal
laws such as ERISA and the Internal Revenue Code, and must be maintained accordingly. Continued compliance with these employee benefit plans' rules is
necessary, as even unintentional failures to comply can result in significant fines and penalties. Employee benefit plans in general also are increasingly the
subject of protracted litigation, especially following significant plan design changes. Certain of the plans sponsored by the subsidiaries of US Airways Group
have undergone several changes in connection with the recent bankruptcy cases.
Risks Related to Our Common Stock
Our common stock has limited trading history and its market price may be volatile.
Because our common stock began trading on the NYSE on September 27, 2005, there is only a limited trading history for our common stock. The market
price of our common stock may fluctuate substantially due to a variety of factors, many of which are beyond our control, including:
• our operating results failing to meet the expectations of securities analysts or investors;
• changes in financial estimates or recommendations by securities analysts;
• material announcements by us or our competitors;
• movements in fuel prices;
• new regulatory pronouncements and changes in regulatory guidelines;
• general and industry-specific economic conditions;
• public sales of a substantial number of shares of our common stock; and
• general market conditions.
Substantial sales of our common stock after the merger could cause our stock price to fall.
Upon completion of all of the merger related equity transactions, we had approximately 77.1 million shares of common stock outstanding, and as of
December 31, 2005, we had approximately 81.7 million shares of common stock outstanding. Each of the new equity investors entered into a stockholders
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