US Airways 2006 Annual Report Download - page 26

Table of Contents
reorganizations, including the termination of four defined benefit pension plans pursuant to agreements with the Pension Benefit
Guaranty Corporation (the "PBGC"). While the PBGC retains the authority to restore some or all of the terminated plans, we believe that
its ability to do so is limited given our emergence from bankruptcy and discharge from prior debts.
US Airways Group could experience significant operating losses in the future.
Although US Airways Group reported an operating profit in 2006, there is no guarantee of future profitability. There are several
reasons, including those addressed in these risk factors, why US Airways Group might fail to achieve profitability and might in fact
experience significant losses. For example, the condition of the national economy has an impact on our revenue performance.
Since early 2001, the U.S. airline industry's revenue performance has fallen short of what would have been expected based on
historical growth trends. This shortfall has been caused by a number of factors discussed in these risk factors.
Risks Related to Our Common Stock
Our common stock has limited trading history and its market price may be volatile.
Our common stock began trading on the NYSE on September 27, 2005 upon the effectiveness of our merger. 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.
Conversion of our convertible notes will dilute the ownership interest of existing stockholders and could adversely affect the market
price of our common stock.
The conversion of some or all of the US Airways Group's 7% senior convertible notes due 2020 will dilute the ownership interests
of existing shareholders. Any sales in the public market of the common stock issuable upon such conversion could adversely affect
prevailing market prices of our common stock. In addition, the existence of the notes may encourage short selling by market participants
because the conversion of the notes could depress the price of our common stock.
A small number of stockholders beneficially own a substantial amount of our common stock.
A significant portion of US Airways Group's common stock is beneficially owned by a relatively small number of equity investors.
As a result, until these stockholders sell a substantial portion of their shares, they will have a greater percentage vote in matters that may
be presented for a vote to stockholders than most other stockholders. This may make it more difficult for other stockholders to influence
votes on matters that may come before stockholders of US Airways Group. In addition, sales of these shares into the market could cause
the market price of our common stock to drop significantly, even if our business is doing well.
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