US Airways 2010 Annual Report Download - page 58

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during 2009 due to a change in the amount of holdback held by certain credit card processors for advance ticket sales for which US
Airways has not yet provided air transportation.
Net cash used in financing activities was $307 million in 2010 as compared to net cash provided by financing activities of $701 million
in 2009. Principal financing activities in 2010 included debt repayments of $764 million, including the repayment of existing debt
associated with eight Airbus aircraft refinanced by a December 2010 enhanced equipment trust certificate ("2010 EETC") issuance and
the repurchase of $69 million aggregate principal amount of our 7% notes. These cash outflows were offset in part by proceeds from the
issuance of debt of $467 million, which included $340 million of proceeds from the issuance of equipment notes associated with the 2010
EETC issuance as well as the financing associated with the purchase of Airbus aircraft. Principal financing activities in 2009 included
proceeds from the issuance of debt of $919 million, which primarily included the financing associated with the purchase of Airbus
aircraft, as well as the issuance of $172 million of convertible notes in a May 2009 public offering, additional loans under a spare parts
loan agreement, a loan secured by certain airport landing slots and an unsecured financing with one of our third party Express carriers.
These cash inflows were offset in part by debt repayments that totaled $407 million in 2009. Financing activities in 2009 also included
net proceeds from the issuance of common stock of $66 million from a May 2009 public offering of 17.5 million shares and $137 million
from a September 2009 public offering of 29 million shares.
2009 Compared to 2008
Net cash provided by operating activities was $59 million in 2009 as compared to net cash used in operating activities of $980 million
in 2008, a year-over-year improvement of $1.04 billion. Operating cash flows significantly improved in 2009 due to the substantial
reduction in the cost of fuel offset by declines in revenues as a result of the global economic recession. Our mainline and Express fuel
expense was $2.28 billion, or 48%, lower in 2009 as compared to 2008 on 4.5% lower capacity. The weak demand environment caused
by the global economic recession resulted in a $1.66 billion, or 13.7%, decline in total operating revenues. In addition, operating cash
flows in 2009 improved by $321 million principally as a result of the wind down of our fuel hedging program. In the latter part of 2008,
we recognized unrealized losses on certain open fuel hedge transactions as the price of heating oil fell below the lower limit of our collar
transactions and caused us to use cash from operations to collateralize our counterparties. Since the third quarter of 2008, we have not
entered into any new transactions to hedge our fuel consumption, and we have not had any fuel hedging contracts outstanding since the
third quarter of 2009. Accordingly, our 2009 operating cash flows were not significantly impacted by fuel hedging transactions as any
hedges settling in 2009 had been fully collateralized through the cash deposits posted during 2008.
Net cash used in investing activities was $495 million and $915 million in 2009 and 2008, respectively. Principal investing activities in
2009 included expenditures for property and equipment totaling $683 million primarily related to the purchase of Airbus aircraft. These
cash outflows were offset in part by $76 million in proceeds from dispositions of property and equipment, a $60 million decrease in
restricted cash and proceeds from sales of investments in marketable securities of $52 million. The $76 million in proceeds from
dispositions of property and equipment was the result of the swap of one of US Airways' owned aircraft in exchange for the leased
aircraft involved in the Flight 1549 accident and sale-leaseback transactions involving four aircraft and five engines. Restricted cash
decreased during 2009 due to a change in the amount of holdback held by certain credit card processors for advance ticket sales for which
US Airways has not yet provided air transportation. Principal investing activities in 2008 included expenditures for property and
equipment totaling $1.07 billion, including the purchase of 14 Embraer aircraft, five Airbus aircraft and a $139 million net increase in
equipment purchase deposits for aircraft on order, as well as a $74 million increase in restricted cash, all of which were offset in part by
net sales of investments in marketable securities of $206 million. The change in the 2008 restricted cash balance was due to changes in
the amount of holdback held by certain credit card processors.
Net cash provided by financing activities was $701 million and $981 million in 2009 and 2008, respectively. Principal financing
activities in 2009 included proceeds from the issuance of debt of $919 million, which primarily included the financing associated with the
purchase of Airbus aircraft, as well as the issuance of $172 million of convertible notes in a May 2009 public offering, additional loans
under a spare parts loan agreement, a loan secured by certain airport landing slots and an unsecured financing with one of our third party
Express carriers. These cash
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