US Airways 2011 Annual Report Download - page 67

Table of Contents
2010 Compared to 2009
Operating Activities
Net cash provided by operating activities was $821 million and $326 million in 2010 and 2009, respectively, a year-over-year improvement of
$495 million. Growth in operating cash flows resulted from a $1.45 billion increase in total operating revenues driven primarily by higher yields as a result of
the improved economy and industry capacity discipline. The increase in revenues was offset in part by increases in mainline and Express fuel expense, which
was $701 million, or 28.4% higher than the 2009 period on a 0.9% increase in total system capacity. In addition, US Airways' 2009 operating cash flows also
benefited from $257 million of net intercompany cash transfers received from US Airways Group. US Airways' 2010 operating cash flows were not materially
impacted by net intercompany cash transfers.
Investing Activities
Net cash provided by investing activities was $77 million in 2010 as compared to net cash used in investing activities of $489 million in 2009. Principal
investing activities in 2010 included proceeds from sales of marketable securities of $325 million, including sales of certain auction rate securities of
$145 million, and a $116 million decrease in restricted cash. These cash inflows were offset in part by expenditures for property and equipment totaling
$187 million and purchases of marketable securities of $180 million. Expenditures for property and equipment in 2010 related primarily to the purchase of
new Airbus aircraft and payments of aircraft pre-delivery deposits.
Principal investing activities in 2009 included expenditures for property and equipment totaling $677 million primarily related to the purchase of new
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 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. Changes in restricted cash reflect adjustments to the amount of holdback held by certain credit card
processors for advance ticket sales for which US Airways has not yet provided air transportation.
Financing Activities
Net cash used in financing activities was $251 million in 2010 as compared to net cash provided by financing activities of $346 million in 2009.
Principal financing activities in 2010 included debt repayments of $679 million, which included the repayment of existing debt associated with eight Airbus
aircraft refinanced using cash provided in the 2010 EETC issuance. Proceeds from the issuance of debt were $437 million, which included $340 million of
proceeds from the issuance of equipment notes associated with the 2010 EETCs as well as the financing associated with the purchase of new Airbus aircraft.
Principal financing activities in 2009 included proceeds from the issuance of debt of $747 million, which primarily included the financing associated
with the purchase of new Airbus aircraft, as well as additional loans under a spare parts loan agreement, a loan secured by certain airport landing slots and an
unsecured financing with one of US Airways' third party Express carriers. Debt repayments were $391 million in 2009.
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