US Airways Reports June Traffic

ARLINGTON, Va., July 3, 2002—

US Airways reported today that revenue passenger miles for June 2002 declined 19.1 percent compared to June 2001, while available seat miles for the month were down 19.6 percent compared to June 2001. The passenger load factor for June 2002 was 77.3 percent, an increase of 0.5 percentage points compared to June 2001.


For the second quarter 2002, revenue passenger miles decreased 18.6 percent compared to the same period in 2001, while available seat miles decreased 20.0 percent. The passenger load factor for the second quarter was 75.1 percent, an increase of 1.3 percentage points compared to the second quarter 2001.


Revenue passenger miles for the first six months of the year decreased 17.4 percent compared to the same period in 2001, while available seat miles were down 19.5 percent year-over-year. The passenger load factor for the period was 71.9 percent, an increase of 1.8 percentage points compared to the same period in 2001.


The three wholly-owned subsidiaries of US Airways Group, Inc.—Allegheny Airlines, Inc., Piedmont Airlines, Inc., and PSA, Inc.—reported that revenue passenger miles for June 2002 increased 4.8 percent compared to June 2001, while available seat miles increased 14.3 percent. The passenger load factor for the month was 56.5 percent, a decrease of 5.1 percentage points compared to June 2001.

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Revenue passenger miles for the second quarter for the three US Airways Express wholly-owned subsidiaries increased 6.3 percent compared to the same period in 2001, while available seat miles were up 14.3 percent. The passenger load factor for the second quarter was 56.1 percent, a decrease of 4.2 percentage points compared to the second quarter 2001.


For the first six months of 2002, revenue passenger miles for the three US Airways Express wholly-owned subsidiaries were up 4.0 percent compared to the same period last year, while available seat miles increased by 10.5 percent. The passenger load factor for the period was 52.6 percent, a decrease of 3.3 percentage points from 2001.


“While we saw load factor improvement again this month, we are seeing unit revenues decline at an unacceptable rate, which partially is attributable to slumping business demand and some weakening in leisure demand,” said B. Ben Baldanza, US Airways senior vice president of marketing and planning.


Mainline passenger unit revenues are expected to decline between 10.5 percent and 11.5 percent for June 2002, compared to June 2001.


Certain of the information discussed above or enclosed herewith should be considered “forward-looking statements” within the meaning of the Private Securities Litigation Act of 1995. A number of risks and uncertainties exist which could cause the actual results to differ materially from the results projected in such forward-looking statements. Additional information concerning the factors which could cause actual results to differ materially from the forward-looking statements are contained in US Airways` periodic filings with the Securities and Exchange Commission. US Airways assumes no obligation to update such estimates to reflect actual results, changes in assumptions or changes in other factors affecting such estimates.


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