US Airways 2010 Annual Report Download - page 25

Table of Contents
Increases in insurance costs or reductions in insurance coverage may adversely impact our operations and financial results.
The terrorist attacks of September 11, 2001 led to a significant increase in insurance premiums and a decrease in the insurance
coverage available to commercial air carriers. Accordingly, our insurance costs increased significantly and our ability to continue to
obtain insurance even at current prices remains uncertain. In addition, we have obtained third-party war risk (terrorism) insurance through
a special program administered by the FAA, resulting in lower premiums than if we had obtained this insurance in the commercial
insurance market. The program has been extended, with the same conditions and premiums, until September 30, 2011. If the federal
insurance program terminates, we would likely face a material increase in the cost of war risk insurance. The failure of one or more of our
insurers could result in a lack of coverage for a period of time. Additionally, severe disruptions in the domestic and global financial
markets could adversely impact the claims paying ability of some insurers. Future downgrades in the ratings of enough insurers could
adversely impact both the availability of appropriate insurance coverage and its cost. Because of competitive pressures in our industry,
our ability to pass additional insurance costs to passengers is limited. As a result, further increases in insurance costs or reductions in
available insurance coverage could have an adverse impact on our financial results.
We may be adversely affected by global events that affect travel behavior.
Our revenue and results of operations may be adversely affected by global events beyond our control. An outbreak of a contagious
disease such as Severe Acute Respiratory Syndrome ("SARS"), H1N1 influenza virus, avian flu, or any other influenza-type illness, if it
were to persist for an extended period, could again materially affect the airline industry and us by reducing revenues and impacting travel
behavior.
We are exposed to foreign currency exchange rate fluctuations.
As a result of our international operations, we have significant operating revenues and expenses, as well as assets and liabilities,
denominated in foreign currencies. Fluctuations in foreign currencies can significantly affect our operating performance and the value of
our assets and liabilities located outside of the United States.
The use of US Airways Group's net operating losses and certain other tax attributes could be limited in the future.
When a corporation undergoes an ownership change, as defined in Section 382 of the Internal Revenue Code ("Section 382"), a
limitation is imposed on the corporation's future ability to utilize any net operating losses ("NOLs") generated before the ownership
change and certain subsequently recognized "built-in" losses and deductions, if any, existing as of the date of the ownership change. We
believe an "ownership change" as defined in Section 382 occurred for US Airways Group in February 2007. Since February 2007, there
have been additional changes in the ownership of US Airways Group that, if combined with sufficiently large future changes in
ownership, could result in another "ownership change" as defined in Section 382. Until US Airways Group has used all of its existing
NOLs, future shifts in ownership of US Airways Group's common stock could result in new Section 382 limitations on the use of our
NOLs as of the date of an additional ownership change.
Risks Relating to Our Common Stock
The price of our common stock has recently been and may in the future be volatile.
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;
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