714560--2/21/2008--US_AIRWAYS_GROUP

related topics

{cost, operation, labor}

{operation, natural, condition}

{system, service, information}

{stock, price, share}

{competitive, industry, competition}

{condition, economic, financial}

{cost, regulation, environmental}

{capital, credit, financial}

{provision, law, control}

{operation, international, foreign}

{tax, income, asset}

{debt, indebtedness, cash}

{personnel, key, retain}

{loss, insurance, financial}

US Airways Group could experience significant operating losses in the future. Union disputes, employee strikes and other labor-related disruptions may adversely affect our operations. We rely heavily on automated systems to operate our business and any failure or disruption of these systems could harm our business. The inability to maintain labor costs at competitive levels could harm our financial performance. 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. Delays in scheduled aircraft deliveries or other loss of anticipated fleet capacity may adversely impact our operations and financial results. We are subject to many forms of environmental regulation and may incur substantial costs as a result. The travel industry continues to face ongoing security concerns. If we incur problems with any of our third party service providers, our operations could be adversely affected by a resulting decline in revenue or negative public perception about our services. Fluctuations in interest rates and increased costs of financing could adversely affect our liquidity, operating expenses and results. 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. Changes in government regulation could increase our operating costs and limit our ability to conduct our business. Ongoing data security compliance requirements could increase our costs, and any significant data breach could harm our business, financial condition or results of operations. Increases in insurance costs or reductions in insurance coverage may adversely impact our operations and financial results. The airline industry is intensely competitive and dynamic. Industry consolidation could weaken our competitive position. 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. Interruptions or disruptions in service at one of our hub airports 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. Our business is subject to weather factors and seasonal variations in airline travel, which cause our results to fluctuate. 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 pre-merger NOLs and certain other tax attributes could be limited in the future. Risks Related to Our Common Stock Our common stock has limited trading history and its market price may 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--2/21/2008--US_AIRWAYS_GROUP_INC