714560--2/17/2010--US_AIRWAYS_GROUP

related topics

{operation, natural, condition}

{cost, operation, labor}

{stock, price, share}

{capital, credit, financial}

{debt, indebtedness, cash}

{system, service, information}

{cost, regulation, environmental}

{provision, law, control}

{tax, income, asset}

{operation, international, foreign}

{gas, price, oil}

{competitive, industry, competition}

{personnel, key, retain}

{loss, insurance, financial}

{regulation, government, change}

Our high level of fixed obligations limits our ability to fund general corporate requirements and obtain additional financing, limits our flexibility in responding to competitive developments and increases our vulnerability to adverse economic and industry conditions. Any failure to comply with the liquidity covenants contained in our financing arrangements would likely have a material adverse effect on our business, financial condition and results of operations. Our business is dependent on the price and availability of aircraft fuel. Continued periods of high volatility in fuel costs, increased fuel prices and significant disruptions in the supply of aircraft fuel could have a significant negative impact on our operating results and liquidity. If our financial condition worsens, provisions in our credit card processing and other commercial agreements may adversely affect our liquidity. Union disputes, employee strikes and other labor-related disruptions may adversely affect our operations. The inability to maintain labor costs at competitive levels could harm our financial performance. If we incur problems with any of our third-party regional operators or third-party service providers, our operations could be adversely affected by a resulting decline in revenue or negative public perception about our services. We rely heavily on automated systems to operate our business and any failure or disruption of these systems could harm our business. Changes to our business model that are designed to increase revenues may not be successful and may cause operational difficulties or decreased demand. The airline industry is intensely competitive and dynamic. The loss of key personnel upon whom we depend to operate our business or the inability to attract additional qualified personnel could adversely affect the results of our operations or our financial performance. We may be adversely affected by conflicts overseas or terrorist attacks; the travel industry continues to face ongoing security concerns. Changes in government regulation could increase our operating costs and limit our ability to conduct our business. Our ability to operate and grow our route network in the future is dependent on the availability of adequate facilities and infrastructure throughout our system. We are subject to many forms of environmental regulation and may incur substantial costs as a result. Ongoing data security compliance requirements could increase our costs, and any significant data breach could harm our business, financial condition or results of operations. Interruptions or disruptions in service at one of our hub airports or our focus city could have a material adverse impact on our operations. We are at risk of losses and adverse publicity stemming from any accident involving any of our aircraft or the aircraft of our regional operators. Delays in scheduled aircraft deliveries or other loss of anticipated fleet capacity may adversely impact our operations and financial results. Our business is subject to weather factors and seasonal variations in airline travel, which cause our results to fluctuate. Increases in insurance costs or reductions in insurance coverage may adversely impact our operations and financial results. We may be adversely affected by global events that affect travel behavior. We are exposed to foreign currency exchange rate fluctuations. The use of US Airways Group s net operating losses and certain other tax attributes could be limited in the future. Risks Relating to Our Common Stock The price of our common stock has recently been and may in the future be volatile. Conversion of our convertible notes will dilute the ownership interest of existing stockholders and could adversely affect the market price of our common stock. Certain provisions of the amended and restated certificate of incorporation and amended and restated bylaws of US Airways Group make it difficult for stockholders to change the composition of our board of directors and may discourage takeover attempts that some of our stockholders might consider beneficial.

Full 10-K form ▸

714560--2/17/2010--US_AIRWAYS_GROUP_INC