US Airways 2005 Annual Report Download - page 62

Table of Contents
AMERICA WEST AIRLINES, INC.
Consolidated Statements of Operations
For the Years Ended December 31, 2005, 2004 and 2003
2005 2004 2003
(In millions)
Operating revenues:
Mainline passenger $ 2,521 $ 2,203 $ 2,118
Express passenger 512 353 268
Cargo 33 28 27
Other 188 163 158
Total operating revenues 3,254 2,747 2,571
Operating expenses:
Aircraft fuel and related taxes 812 590 404
Gain on fuel hedging instruments, net (75) (24) (11)
Salaries and related costs 701 655 658
Express expenses 545 374 287
Aircraft rent 327 304 298
Aircraft maintenance 259 206 223
Other rent and landing fees 176 168 155
Selling expenses 161 153 156
Special charges (credits), net 106 (16) 14
Depreciation and amortization 53 54 67
Other 309 299 283
Total operating expenses 3,374 2,763 2,534
Operating income (loss) (120) (16) 37
Nonoperating income (expenses):
Interest income 25 14 13
Interest expense, net (94) (86) (87)
Federal government assistance — — 81
Gain on disposition of property and equipment 2 1 —
Gain on sale of investment — — 10
Other, net (8) 2 7
Total nonoperating income (expenses), net (75) (69) 24
Income (loss) before income taxes (benefit) and cumulative effect of change in accounting principle $ (195) $ (85) $ 61
AWA realized operating losses of $120 million and $16 million in 2005 and 2004, respectively, as compared to $37 million of operating income in 2003.
Loss before income taxes and cumulative effect of change in accounting principle was $195 million and $85 million in 2005 and 2004, respectively, as
compared to income before income taxes and cumulative effect of change in accounting principle of $61 million in 2003. In 2005, AWA changed its
accounting policy for certain maintenance costs from the deferral method to the direct expense method as if that change occurred January 1, 2005. This
resulted in a $202 million loss from the cumulative effect of a change in accounting principle. See note 3, "Change in Accounting Principle for Maintenance
Costs," to the consolidated financial statements in Item 8B of this report. 56