Seabury Group LLC's broker-dealer unit, Seabury Securities LLC, served as the company's financial advisor and McKenna Long & Aldridge LLP served as the company's counsel for the offering.

US Airways is the fifth largest domestic airline employing more than 35,000 aviation professionals worldwide. US Airways, US Airways Shuttle and US Airways Express operate approximately 3,500 flights per day and serve more than 230 communities in the U.S., Canada, Europe, the Caribbean and Latin America. US Airways is a member of the Star Alliance network, which offers our customers 18,000 daily flights to 965 destinations in 162 countries worldwide. This press release and additional information on US Airways can be found at www.usairways.com. (LCCF)

Forward-Looking Statements

Certain of the statements contained herein should be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements may be identified by words such as "may," "will," "expect," "intend," "anticipate," "believe," "estimate," "plan," "could," "should," and "continue" and similar terms used in connection with statements regarding the outlook, expected fuel costs, revenue and pricing environment, and expected financial performance of US Airways Group (the "Company"). Such statements include, but are not limited to, statements about the benefits of the business combination transaction involving America West Holdings Corporation and US Airways Group, including future financial and operating results, the Company's plans, objectives, expectations and intentions, and other statements that are not historical facts. These statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties that could cause the Company's actual results and financial position to differ materially from these statements. Such risks and uncertainties include, but are not limited to, the following: the impact of high fuel costs, significant disruptions in fuel supply and further significant increases to fuel prices; the impact of future significant operating losses; the Company's high level of fixed obligations (including compliance with financial covenants related to those obligations) and the ability of the Company to obtain and maintain any necessary financing for operations and other purposes; the impact of changes in the Company's business model; the ability of the Company to maintain adequate liquidity; changes in prevailing interest rates and increased costs of financing; the impact of economic conditions; the ability of the Company to obtain and maintain commercially reasonable terms with vendors and service providers and reliance on those vendors and service providers; reliance on third party service providers and the impact of any failure or disruption by these providers; labor costs, relations with unionized employees generally and the impact and outcome of the labor negotiations; reliance on automated systems and the impact of any failure or disruption of these systems; the impact of industry consolidation; competitive practices in the industry, including significant fare restructuring activities, capacity reductions or other restructuring or consolidation activities by major airlines; the ability to attract and retain qualified personnel; the impact of global instability including the potential impact of current and future hostilities, terrorist attacks, infectious disease outbreaks or other global events; security-related and insurance costs; government legislation and regulation, including environmental regulation; the Company's ability to obtain and maintain adequate facilities and infrastructure to operate and grow the Company's network; costs of ongoing data security compliance requirements and the impact of any data security breach; interruptions or disruptions in service at one or more of the Company's hub airports; the impact of any accident involving the Company's aircraft; delays in scheduled aircraft deliveries or other loss of anticipated fleet capacity; weather conditions; the cyclical nature of the airline industry; the impact of foreign currency exchange rate fluctuations; the ability to use pre-merger NOLs and certain other tax attributes; ability to integrate management, operations and labor groups; the ability to maintain contracts critical to the Company's operations; the ability of the Company to attract and retain customers; and other risks and uncertainties listed from time to time in the Company's reports to the SEC. There may be other factors not identified above of which the Company is not currently aware that may affect matters discussed in the forward-looking statements, and may also cause actual results to differ materially from those discussed. The Company assumes no obligation to publicly update any forward-looking statement to reflect actual results, changes in assumptions or changes in other factors affecting such estimates other than as required by law. Additional factors that may affect the future results of the Company are set forth in the section entitled "Risk Factors" in the Company's Report on Form 10-Q for the quarter ended June 30, 2008 and in the Company's filings with the SEC, which are available at www.usairways.com.

SOURCE: US Airways Group, Inc.

US Airways Group, Inc., Tempe
Dan Cravens, 480-693-5729

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"On the liquidity front, we ended the quarter with a strong total cash and investments balance of $2.8 billion. While pleased with this position relative to our peers, in light of the industry environment, we are working productively with all of our stakeholders to further enhance liquidity.

"Last but certainly not least, US Airways' operational turnaround has been nothing short of spectacular. Following six consecutive months of top-three finishes in on-time performance among the ten largest U.S. airlines, our team of 35,000 employees is to be congratulated. As a result of their hard work, US Airways is leading the major airlines in on-time performance in 2008," continued Parker.

Revenue and Cost Comparisons

Mainline passenger revenue per available seat mile (PRASM) in the second quarter was 11.42 cents, up 1.6 percent over the same period last year. Express PRASM was 20.60 cents, down 0.6 percent over the second quarter 2007. Total mainline and Express PRASM for US Airways Group was 12.96 cents, which was up 2.0 percent over the second quarter 2007 on a 0.9 percent increase in total available seat miles (ASMs).

Mainline cost per available seat mile (CASM) was 15.33 cents, up 35.2 percent versus the same period last year on a decrease in mainline capacity of 0.7 percent versus the second quarter of 2007. The non-cash goodwill impairment contributed 3.21 cents, or 80 percent of the period-over-period CASM increase. Additionally, fuel expense continues to be a significant contributing factor to the CASM increase as the average mainline fuel price per gallon excluding realized gains/losses on fuel hedging instruments increased 69.2 percent year-over-year. Excluding fuel, unrealized and realized gains/losses on fuel hedging instruments, and net special items, mainline CASM was 8.32 cents, up 4.0 percent from the same period last year.

Chief Financial Officer Derek Kerr stated, "Although our second quarter results reflect the staggering increase in the price of fuel, our fuel hedging strategy resulted in significant realized gains of $192 million during the quarter. Had the average price per gallon remained constant from the second quarter 2007, our total fuel expense, including realized gains/losses on fuel hedging instruments, would have been approximately $390 million lower. In addition, during the second quarter we also saw an increase in non-fuel unit costs that was primarily driven by higher engine maintenance expense as well as a reduction in mainline capacity of 0.7 percent."

Liquidity

As of June 30, 2008, the Company had $2.8 billion in total cash and investments, of which $2.3 billion was unrestricted.

As previously announced, in order to preserve liquidity, US Airways has reduced its forecasted capital expenditure plan for 2008 by approximately $90 million since the beginning of the year. This brings the total 2008 estimated non-aircraft capital expenditures to $225 million.

Capacity Reductions

In response to the continued and unprecedented surge in oil prices, the airline will reduce its fourth quarter and 2009 capacity by an additional one to two percent on a year-over-year basis. The airline had previously planned on a three to five percent decrease in system capacity for both its fourth quarter 2008 and full-year 2009.

                      Available Seat Miles Year-Over-Year Change
                ------------------------------------------------------
                     3Q08          4Q08          FY08         FY09
                -------------- ------------- ------------- -----------
Domestic          -1% to -3%    -6% to -8%    -3% to -5%   -8% to -10%
International     -0% to -2%    -1% to -3%    +2% to +4%   +9% to +11%
                -------------- ------------- ------------- -----------
Total Mainline    -1% to -3%    -5% to -7%    -1% to -3%   -4% to -6%
Express          +8% to +10%    -1% to -3%    +4% to +6%   -5% to -7%
                -------------- ------------- ------------- -----------
Total System      -1% to +1%    -4% to -6%    -0% to -2%   -4% to -6%

Second Quarter Special Items

During its second quarter, the Company recognized $466 million of net special items. These special items included a non-cash accounting charge of $622 million to write off all of the goodwill created by the merger of US Airways Group, Inc. and America West Holdings Corporation in September 2005, a non-cash accounting charge of $18 million related to the decline in fair market value of certain spare parts associated with the Company's Boeing 737 aircraft, $10 million in merger related transition costs, and a $6 million charge for lease return costs and lease cancellation penalties related to certain Airbus aircraft as a result of the fleet reductions announced in June 2008. These expenses were offset by a $190 million non-cash unrealized net gain associated with the change in fair value of the Company's outstanding fuel hedge contracts.

Notable Accomplishments

People

-- Signed contracts with the airline's fleet service, maintenance training instructors, and mechanic-and-related employees represented by the International Association of Machinists and Aerospace Workers (IAM). US Airways now has ratified contracts with all 11,000 of its IAM-represented employees.

-- Distributed approximately $10 million over the first six months of 2008 to the airline's 35,000 employees through its Triple Play program, which measures US Airways' operational performance against the 10 largest U.S. airlines.

Finance

-- Announced several significant changes to the airline's business model including the fourth quarter 2008 and full-year 2009 domestic mainline capacity reductions of six to eight percent and eight to ten percent, respectively.

-- Implemented an a la carte pricing strategy, which was originally expected to generate approximately $300 to $400 million annually in incremental revenue; the Company recently revised its estimates by $100 million based on positive results thus far. The Company now anticipates it will generate $400 to $500 million in incremental revenue on an annualized basis.

Marketing

-- Introduced upgraded and enhanced Envoy (trans-Atlantic premium class) product with more personalized in-flight service, better-quality menus and greater choice.

-- Successfully began offering Choice Seats, where customers can reserve window and aisle seat assignments in the first few rows in the main cabin during web check-in for a small fee.

-- Signed new codeshare agreements with Swiss International Air Lines and Air China. The new agreements allow for more convenient connectivity options for US Airways customers to both Europe and Asia.

-- Introduced redesigned and updated flight attendant and airport customer service employee uniforms.

Operations

-- For six consecutive months, US Airways has ranked as one of the top three airlines in on-time performance (among the 10 largest U.S. carriers). This includes three number one finishes in December, January and March.

-- Broke ground on a new, state-of-the-art, environmentally friendly, 58,000 square foot ground service equipment facility at Philadelphia International Airport.

Analyst Conference Call/Webcast Details

US Airways will conduct a live audio webcast of its earnings call today at 12:30 p.m. EDT, which will be available to the public on a listen-only basis at www.usairways.com under the About US // Investor Relations tab. An archive of the call/webcast will be available in the Public/Investor Relations portion of the Web site through Aug. 22, 2008.

The airline will also update its investor relations guidance on its Web site (www.usairways.com). Information that will be updated includes cost per available seat mile (CASM) excluding fuel and transition expenses, fuel prices and hedging positions, other revenues, estimated interest expense/income and merger related transition expense guidance. The investor relations update page also includes the airline's capacity, fleet plan, and estimated capital spending for 2008.

About US Airways

US Airways is the fifth largest domestic airline employing more than 35,000 aviation professionals worldwide. US Airways, US Airways Shuttle and US Airways Express operate approximately 3,500 flights per day and serve more than 230 communities in the U.S., Canada, Europe, the Caribbean and Latin America. US Airways is a member of the Star Alliance network, which offers our customers 18,000 daily flights to 965 destinations in 162 countries worldwide. This press release and additional information on US Airways can be found at www.usairways.com. (LCCF)

Forward Looking Statements

Certain of the statements contained herein should be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements may be identified by words such as "may," "will," "expect," "intend," "anticipate," "believe," "estimate," "plan," "could," "should," and "continue" and similar terms used in connection with statements regarding the outlook, expected fuel costs, revenue and pricing environment, and expected financial performance of US Airways Group (the "Company"). Such statements include, but are not limited to, statements about the benefits of the business combination transaction involving America West Holdings Corporation and US Airways Group, including future financial and operating results, the Company's plans, objectives, expectations and intentions, and other statements that are not historical facts. These statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties that could cause the Company's actual results and financial position to differ materially from these statements. Such risks and uncertainties include, but are not limited to, the following: the impact of high fuel costs, significant disruptions in fuel supply and further significant increases to fuel prices; the impact of future significant operating losses; the Company's high level of fixed obligations (including compliance with financial covenants related to those obligations) and the ability of the Company to obtain and maintain any necessary financing for operations and other purposes; the impact of changes in the Company's business model; the ability of the Company to maintain adequate liquidity; changes in prevailing interest rates and increased costs of financing; the impact of economic conditions; the ability of the Company to obtain and maintain commercially reasonable terms with vendors and service providers and reliance on those vendors and service providers; reliance on third party service providers and the impact of any failure or disruption by these providers; labor costs, relations with unionized employees generally and the impact and outcome of the labor negotiations; reliance on automated systems and the impact of any failure or disruption of these systems; the impact of industry consolidation; competitive practices in the industry, including significant fare restructuring activities, capacity reductions or other restructuring or consolidation activities by major airlines; the ability to attract and retain qualified personnel; the impact of global instability including the potential impact of current and future hostilities, terrorist attacks, infectious disease outbreaks or other global events; security-related and insurance costs; government legislation and regulation, including environmental regulation; the Company's ability to obtain and maintain adequate facilities and infrastructure to operate and grow the Company's network; costs of ongoing data security compliance requirements and the impact of any data security breach; interruptions or disruptions in service at one or more of the Company's hub airports; the impact of any accident involving the Company's aircraft; delays in scheduled aircraft deliveries or other loss of anticipated fleet capacity; weather conditions; the cyclical nature of the airline industry; the impact of foreign currency exchange rate fluctuations; the ability to use pre-merger NOLs and certain other tax attributes; ability to integrate management, operations and labor groups; the ability to maintain contracts critical to the Company's operations; the ability of the Company to attract and retain customers; and other risks and uncertainties listed from time to time in the Company's reports to the SEC. There may be other factors not identified above of which the Company is not currently aware that may affect matters discussed in the forward-looking statements, and may also cause actual results to differ materially from those discussed. The Company assumes no obligation to publicly update any forward-looking statement to reflect actual results, changes in assumptions or changes in other factors affecting such estimates other than as required by law. Additional factors that may affect the future results of the Company are set forth in the section entitled "Risk Factors" in the Company's Report on Form 10-Q for the quarter ended March 31, 2008 and in the Company's filings with the SEC, which are available at www.usairways.com.

                        US Airways Group, Inc.
           Condensed Consolidated Statements of Operations
          (in millions, except share and per share amounts)
                             (unaudited)


                                 3 Months Ended 3 Months Ended Percent
                                 June 30, 2008  June 30, 2007  Change
                                 -------------- -------------- -------

Operating revenues:
    Mainline passenger                 $ 2,214        $ 2,194     0.9
    Express passenger                      802            737     8.8
    Cargo                                   38             34    12.1
    Other                                  203            190     6.7
                                 -------------- --------------
    Total operating revenues             3,257          3,155     3.2
                                 -------------- --------------

Operating expenses:
    Aircraft fuel and related
     taxes                               1,086            658    65.1
    Loss (gain) on fuel hedging
     instruments, net:
         Realized                         (192)             2      nm
         Unrealized                       (190)           (25)     nm
    Salaries and related costs             571            576    (0.9)
    Express expenses:
         Fuel                              340            187    81.6
         Other                             482            465     3.6
    Aircraft rent                          183            180     1.5
    Aircraft maintenance                   200            170    17.9
    Other rent and landing fees            142            139     2.2
    Selling expenses                       116            125    (7.1)
    Special items, net                      34             27    22.8
    Depreciation and
     amortization                           57             46    22.4
    Goodwill impairment                    622              -      nm
    Other                                  342            316     9.0
                                 -------------- --------------
    Total operating expenses             3,793          2,866    32.4
                                 -------------- --------------

    Operating income (loss)               (536)           289      nm
                                 -------------- --------------

Nonoperating income (expense):
    Interest income                         21             48   (56.2)
    Interest expense, net                  (56)           (69)  (18.4)
    Other, net                               4              3    60.8
                                 -------------- --------------
    Total nonoperating expense,
     net                                   (31)           (18)   69.0
                                 -------------- --------------

Income (loss) before income
 taxes                                    (567)           271      nm

Income tax provision                         -              8      nm
                                 -------------- --------------

    Net income (loss)                  $  (567)       $   263      nm
                                 ============== ==============


Earnings (loss) per share:
    Basic                              $ (6.16)       $  2.88
                                 ============== ==============
    Diluted                            $ (6.16)       $  2.77
                                 ============== ==============

Shares used for computation (in
 thousands):
    Basic                               92,137         91,477
                                 ============== ==============
    Diluted                             92,137         95,613
                                 ============== ==============


                                 6 Months Ended 6 Months Ended Percent
                                 June 30, 2008  June 30, 2007  Change
                                 -------------- -------------- -------

Operating revenues:
    Mainline passenger                 $ 4,167        $ 4,100     1.6
    Express passenger                    1,459          1,346     8.4
    Cargo                                   74             70     5.4
    Other                                  396            371     6.9
                                 -------------- --------------
    Total operating revenues             6,096          5,887     3.6
                                 -------------- --------------

Operating expenses:
    Aircraft fuel and related
     taxes                               1,908          1,208    58.0
    Loss (gain) on fuel hedging
     instruments, net:
         Realized                         (274)            37      nm
         Unrealized                       (226)          (115)   96.2
    Salaries and related costs           1,134          1,104     2.7
    Express expenses:
         Fuel                              589            340    73.2
         Other                             967            932     3.7
    Aircraft rent                          361            360     0.3
    Aircraft maintenance                   413            335    23.2
    Other rent and landing fees            287            267     7.5
    Selling expenses                       220            231    (4.7)
    Special items, net                      59             66   (10.7)
    Depreciation and
     amortization                          107             90    18.1
    Goodwill impairment                    622              -      nm
    Other                                  662            627     5.7
                                 -------------- --------------
    Total operating expenses             6,829          5,482    24.6
                                 -------------- --------------

    Operating income (loss)               (733)           405      nm
                                 -------------- --------------

Nonoperating income (expense):
    Interest income                         50             88   (43.6)
    Interest expense, net                 (116)          (140)  (16.9)
    Other, net                              (5)           (13)  (66.9)
                                 -------------- --------------
    Total nonoperating expense,
     net                                   (71)           (65)    9.4
                                 -------------- --------------

Income (loss) before income
 taxes                                    (804)           340      nm

Income tax provision                         -             11      nm
                                 -------------- --------------

    Net income (loss)                  $  (804)       $   329      nm
                                 ============== ==============


Earnings (loss) per share:
    Basic                              $ (8.73)       $  3.60
                                 ============== ==============
    Diluted                            $ (8.73)       $  3.46
                                 ============== ==============

Shares used for computation (in
 thousands):
    Basic                               92,080         91,420
                                 ============== ==============
    Diluted                             92,080         95,918
                                 ============== ==============

                        US Airways Group, Inc.
                         Operating Statistics



                              3 Months Ended 3 Months Ended Percent
                              June 30, 2008  June 30, 2007  Change
                              -------------- -------------- -------

Mainline
-----------------------------
Revenue passenger miles
 (millions)                           16,193         16,294  (0.6)
Available seat miles (ASM)
 (millions)                           19,387         19,523  (0.7)
Passenger load factor
 (percent)                              83.5           83.5     -  pts
Yield (cents)                          13.67          13.47   1.5
Passenger revenue per ASM
 (cents)                               11.42          11.24   1.6

Passenger enplanements
 (thousands)                          14,410         15,375  (6.3)
Departures (thousands)                 127.2          134.3  (5.3)
Aircraft at end of period                357            358  (0.3)

Block hours                          337,257        344,736  (2.2)
Average stage length (miles)             971            930   4.5
Average passenger journey
 (miles)                               1,584          1,494   6.0
Fuel consumption (gallons in
 millions)                             299.1          306.6  (2.4)
Average aircraft fuel price
 including related taxes
 (dollars per gallon)                   3.63           2.15  69.2
Average aircraft fuel price
 including related taxes and
 realized loss (gain) on fuel
 hedging instruments, net
 (dollars per gallon)                   2.99           2.15  38.9
Full-time equivalent
 employees at end of period           34,359         35,532  (3.3)

Operating cost per ASM
 (cents)                               15.33          11.34  35.2
Operating cost per ASM
 excluding special items
 (cents)                               12.92          11.37  13.6
Operating cost per ASM
 excluding special items,
 fuel and realized gain
 (loss) on fuel hedging
 instruments, net (cents)               8.32           8.00   4.0

Express*
-----------------------------
Revenue passenger miles
 (millions)                            2,906          2,740   6.1
Available seat miles
 (millions)                            3,893          3,558   9.4
Passenger load factor
 (percent)                              74.7           77.0  (2.3) pts
Yield (cents)                          27.59          26.90   2.5
Passenger revenue per ASM
 (cents)                               20.60          20.72  (0.6)

Passenger enplanements
 (thousands)                           7,071          6,857   3.1
Aircraft at end of period                295            281   5.0
Fuel consumption (gallons in
 millions)                              91.3           86.1   6.0
Average aircraft fuel price
 including related taxes
 (dollars per gallon)                   3.72           2.17  71.3

Operating cost per ASM
 (cents)                               21.12          18.34  15.1
Operating cost per ASM
 excluding fuel, net (cents)           12.39          13.08  (5.3)

TOTAL - Mainline & Express
-----------------------------
Revenue passenger miles
 (millions)                           19,099         19,034   0.3
Available seat miles
 (millions)                           23,280         23,081   0.9
Passenger load factor
 (percent)                              82.0           82.5  (0.5) pts
Yield (cents)                          15.79          15.40   2.5
Passenger revenue per ASM
 (cents)                               12.96          12.70   2.0
Total revenue per ASM (cents)          13.99          13.67   2.3
Passenger enplanements
 (thousands)                          21,481         22,232  (3.4)
Aircraft at end of period                652            639   2.0
Fuel consumption (gallons in
 millions)                             390.4          392.7  (0.6)
Average aircraft fuel price
 including related taxes
 (dollars per gallon)                   3.65           2.15  69.7
Operating cost per ASM
 (cents)                               16.29          12.42  31.2



                              6 Months Ended 6 Months Ended Percent
                              June 30, 2008  June 30, 2007  Change
                              -------------- -------------- -------

Mainline
-----------------------------
Revenue passenger miles
 (millions)                           30,682         30,712  (0.1)
Available seat miles (ASM)
 (millions)                           37,721         38,079  (0.9)
Passenger load factor
 (percent)                              81.3           80.7   0.6  pts
Yield (cents)                          13.58          13.35   1.7
Passenger revenue per ASM
 (cents)                               11.05          10.77   2.6

Passenger enplanements
 (thousands)                          27,946         29,355  (4.8)
Departures (thousands)                 253.0          266.0  (4.9)
Aircraft at end of period                357            358  (0.3)

Block hours                          664,587        679,693  (2.2)
Average stage length (miles)             954            921   3.6
Average passenger journey
 (miles)                               1,552          1,478   4.9
Fuel consumption (gallons in
 millions)                             584.6          598.5  (2.3)
Average aircraft fuel price
 including related taxes
 (dollars per gallon)                   3.26           2.02  61.8
Average aircraft fuel price
 including related taxes and
 realized loss (gain) on fuel
 hedging instruments, net
 (dollars per gallon)                   2.80           2.08  34.4
Full-time equivalent
 employees at end of period           34,359         35,532  (3.3)

Operating cost per ASM
 (cents)                               13.98          11.06  26.5
Operating cost per ASM
 excluding special items
 (cents)                               12.77          11.21  14.0
Operating cost per ASM
 excluding special items,
 fuel and realized gain
 (loss) on fuel hedging
 instruments, net (cents)               8.44           7.94   6.3

Express*
-----------------------------
Revenue passenger miles
 (millions)                            5,391          5,123   5.2
Available seat miles
 (millions)                            7,492          7,006   6.9
Passenger load factor
 (percent)                              72.0           73.1  (1.1) pts
Yield (cents)                          27.07          26.28   3.0
Passenger revenue per ASM
 (cents)                               19.48          19.22   1.3

Passenger enplanements
 (thousands)                          13,266         12,812   3.5
Aircraft at end of period                295            281   5.0
Fuel consumption (gallons in
 millions)                             177.0          170.3   3.9
Average aircraft fuel price
 including related taxes
 (dollars per gallon)                   3.33           2.00  66.4

Operating cost per ASM
 (cents)                               20.77          18.16  14.3
Operating cost per ASM
 excluding fuel, net (cents)           12.91          13.30  (3.0)

TOTAL - Mainline & Express
-----------------------------
Revenue passenger miles
 (millions)                           36,073         35,835   0.7
Available seat miles
 (millions)                           45,213         45,085   0.3
Passenger load factor
 (percent)                              79.8           79.5   0.3  pts
Yield (cents)                          15.60          15.20   2.6
Passenger revenue per ASM
 (cents)                               12.44          12.08   3.0
Total revenue per ASM (cents)          13.48          13.06   3.3
Passenger enplanements
 (thousands)                          41,212         42,167  (2.3)
Aircraft at end of period                652            639   2.0
Fuel consumption (gallons in
 millions)                             761.6          768.8  (0.9)
Average aircraft fuel price
 including related taxes
 (dollars per gallon)                   3.28           2.01  62.8
Operating cost per ASM
 (cents)                               15.11          12.16  24.2



* Express includes US Airways Group's wholly owned regional airline
 subsidiaries, Piedmont Airlines and PSA Airlines, as well as
 operating and financial results from capacity purchase agreements
 with Mesa Airlines, Chautauqua Airlines, Air Wisconsin Airlines and
 Republic Airlines.

Reconciliation of GAAP Financial Information to Non-GAAP Financial
 Information


US Airways Group, Inc. (the "Company") is providing disclosure of the
 reconciliation of reported non-GAAP financial measures to their
 comparable financial measures on a GAAP basis. The Company believes
 that the non-GAAP financial measures provide investors the ability to
 measure financial performance excluding special items, which is more
 indicative of the Company's ongoing performance and is more
 comparable to measures reported by other major airlines. The Company
 believes that the presentation of mainline and Express CASM excluding
 fuel and gain or loss on fuel hedging instruments is useful to
 investors as both the cost and availability of fuel are subject to
 many economic and political factors beyond the Company's control.


                                        3 Months Ended 3 Months Ended
                                        June 30, 2008  June 30, 2007
                                        -------------- ---------------
                                        (in millions, except share and
                                              per share amounts)

  Reconciliation of Net Income (loss)
   Excluding Special Items for US
   Airways Group, Inc.
  -------------------------------------

  Net income (loss) as reported              $  (567)       $   263

  Special items:
     Unrealized gain on fuel hedging
      instruments, net (1)                      (190)           (25)
     Special items, net (2)                       34             27
     Goodwill impairment (3)                     622              -
     Other operating special items, net
      (4)                                          -             (9)
     Nonoperating special items, net
      (5)                                          -              -
     Non-cash tax provision from
      utilization of pre-acquisition
      NOL (6)                                      -              5
                                        -------------  -------------

  Net income (loss) as adjusted for
   special items                             $  (101)       $   261
                                        =============  =============

  Shares used for computation (in
   thousands):
     Basic                                    92,137         91,477
                                        =============  =============
     Diluted (7)                              92,137         95,613
                                        =============  =============

  Earnings (loss) per share as adjusted
   for special items:
     Basic                                   $ (1.11)       $  2.85
                                        =============  =============
     Diluted                                 $ (1.11)       $  2.74
                                        =============  =============


                                        3 Months Ended 3 Months Ended
                                        June 30, 2008  June 30, 2007
                                        -------------- ---------------

  Reconciliation of Operating Cost per
   ASM Excluding Special Items, Fuel,
   Realized Gain (Loss) on Fuel Hedging
   Instruments, Net - Mainline only
  -------------------------------------

  US Airways Group, Inc.
  -----------------------------------
  (in millions)
  Total operating expenses                   $ 3,793        $ 2,866
  Less Express expenses:
    Fuel                                        (340)          (187)
    Other                                       (482)          (465)
                                        -------------  -------------
  Total mainline operating expenses            2,971          2,214

  Special items:
     Unrealized gain on fuel hedging
      instruments, net (1)                       190             25
     Special items, net (2)                      (34)           (27)
     Goodwill impairment (3)                    (622)             -
     Other operating special items, net
      (4)                                          -              9
                                        -------------  -------------
   Mainline operating expenses,
    excluding special items                    2,505          2,221

   Aircraft fuel and related taxes            (1,086)          (658)
   Realized gain (loss) on fuel hedging
    instruments, net                             192             (2)
                                        -------------  -------------
   Mainline operating expenses,
    excluding special items, fuel and
    realized gain (loss) on fuel
    hedging instruments, net                 $ 1,611        $ 1,561
                                        =============  =============

   (in cents)
   Mainline operating expenses per ASM         15.33          11.34

  Special items per ASM
      Unrealized gain on fuel hedging
       instruments, net (1)                     0.98           0.13
      Special items, net (2)                   (0.17)         (0.14)
      Goodwill impairment (3)                  (3.21)             -
      Other operating special items,
       net (4)                                     -           0.05
                                        -------------  -------------
   Mainline operating expenses per ASM,
    excluding special items                    12.92          11.37

   Aircraft fuel and related taxes             (5.60)         (3.37)
   Realized gain (loss) on fuel hedging
    instruments, net                            0.99          (0.01)
                                        -------------  -------------
   Mainline operating expenses per ASM,
    excluding special items, fuel and
    realized gain (loss) on fuel
    hedging instruments, net                 $  8.32        $  8.00
                                        =============  =============


                                        3 Months Ended 3 Months Ended
                                        June 30, 2008  June 30, 2007
                                        -------------- ---------------

  Reconciliation of Operating Cost per
   ASM Excluding Fuel - Express only
  -------------------------------------

  US Airways Group, Inc.
  -----------------------------------
  (in millions)
  Total Express operating expenses           $   822        $   652

   Aircraft fuel and related taxes              (340)          (187)
                                        -------------  -------------
   Express operating expenses,
    excluding fuel                           $   482        $   465
                                        =============  =============

   (in cents)
   Express operating expenses per ASM          21.12          18.34

   Aircraft fuel and related taxes             (8.73)         (5.26)
                                        -------------  -------------
   Express operating expenses per ASM,
    excluding fuel                           $ 12.39        $ 13.08
                                        =============  =============


                                         6 Months Ended 6 Months Ended
                                         June 30, 2008  June 30, 2007
                                         -------------- --------------
                                       (in millions, except share and
                                              per share amounts)

  Reconciliation of Net Income (loss)
   Excluding Special Items for US
   Airways Group, Inc.
  ------------------------------------

  Net income (loss) as reported               $  (804)        $   329

  Special items:
     Unrealized gain on fuel hedging
      instruments, net (1)                       (226)           (115)
     Special items, net (2)                        59              66
     Goodwill impairment (3)                      622               -
     Other operating special items,
      net (4)                                       -              (9)
     Nonoperating special items, net
      (5)                                           7              18
     Non-cash tax provision from
      utilization of pre-acquisition
      NOL (6)                                       -               6
                                         -------------  --------------

  Net income (loss) as adjusted for
   special items                              $  (342)        $   295
                                         =============  ==============

  Shares used for computation (in
   thousands):
     Basic                                     92,080          91,420
                                         =============  ==============
     Diluted (7)                               92,080          95,918
                                         =============  ==============

  Earnings (loss) per share as
   adjusted for special items:
     Basic                                    $ (3.70)        $  3.23
                                         =============  ==============
     Diluted                                  $ (3.70)        $  3.11
                                         =============  ==============


                                         6 Months Ended 6 Months Ended
                                         June 30, 2008  June 30, 2007
                                         -------------- --------------

  Reconciliation of Operating Cost per
   ASM Excluding Special Items, Fuel,
   Realized Gain (Loss) on Fuel
   Hedging Instruments, Net - Mainline
   only
  ------------------------------------

  US Airways Group, Inc.
  ----------------------------------
  (in millions)
  Total operating expenses                    $ 6,829         $ 5,482
  Less Express expenses:
    Fuel                                         (589)           (340)
    Other                                        (967)           (932)
                                         -------------  --------------
  Total mainline operating expenses             5,273           4,210

  Special items:
     Unrealized gain on fuel hedging
      instruments, net (1)                        226             115
     Special items, net (2)                       (59)            (66)
     Goodwill impairment (3)                     (622)              -
     Other operating special items,
      net (4)                                       -               9
                                         -------------  --------------
   Mainline operating expenses,
    excluding special items                     4,818           4,268

   Aircraft fuel and related taxes             (1,908)         (1,208)
   Realized gain (loss) on fuel
    hedging instruments, net                      274             (37)
                                         -------------  --------------
   Mainline operating expenses,
    excluding special items, fuel and
    realized gain (loss) on fuel
    hedging instruments, net                  $ 3,184         $ 3,023
                                         =============  ==============

   (in cents)
   Mainline operating expenses per ASM          13.98           11.06

  Special items per ASM
      Unrealized gain on fuel hedging
       instruments, net (1)                      0.60            0.30
      Special items, net (2)                    (0.16)          (0.17)
      Goodwill impairment (3)                   (1.65)              -
      Other operating special items,
       net (4)                                      -            0.03
                                         -------------  --------------
   Mainline operating expenses per
    ASM, excluding special items                12.77           11.21

   Aircraft fuel and related taxes              (5.06)          (3.17)
   Realized gain (loss) on fuel
    hedging instruments, net                     0.73           (0.10)
                                         -------------  --------------
   Mainline operating expenses per
    ASM, excluding special items, fuel
    and realized gain (loss) on fuel
    hedging instruments, net                  $  8.44         $  7.94
                                         =============  ==============


                                         6 Months Ended 6 Months Ended
                                         June 30, 2008  June 30, 2007
                                         -------------- --------------

  Reconciliation of Operating Cost per
   ASM Excluding Fuel - Express only
  ------------------------------------

  US Airways Group, Inc.
  ----------------------------------
  (in millions)
  Total Express operating expenses            $ 1,556         $ 1,272

   Aircraft fuel and related taxes               (589)           (340)
                                         -------------  --------------
   Express operating expenses,
    excluding fuel                            $   967         $   932
                                         =============  ==============

   (in cents)
   Express operating expenses per ASM           20.77           18.16

   Aircraft fuel and related taxes              (7.86)          (4.86)
                                         -------------  --------------
   Express operating expenses per ASM,
    excluding fuel                            $ 12.91         $ 13.30
                                         =============  ==============


 Note: Amounts may not recalculate due to rounding.

   FOOTNOTES:
   -------------------------------------------------------------------

1) The 2008 second quarter and six month periods include $190 million
    and $226 million of unrealized gains, respectively, and the 2007
    second quarter and six month periods include $25 million and $115
    million of unrealized gains, respectively, resulting from mark-to-
    market accounting for changes in the fair value of the Company's
    fuel hedging instruments.

2) The 2008 second quarter includes $18 million of non-cash accounting
    charges related to the decline in fair market value of certain
    spare parts associated with the Company's Boeing 737 aircraft
    fleet, $10 million of merger related transition expenses, and $6
    million in charges for lease return costs and lease cancellation
    penalties related to certain Airbus aircraft as a result of the
    capacity reductions announced in June 2008. The 2008 six month
    period includes the $18 million and $6 million discussed above in
    addition to $35 million of merger related transition expenses. The
    2007 second quarter and six month periods include $27 million and
    $66 million, respectively, of merger related transition expenses.

3) The 2008 second quarter and six month periods include a non-cash
    accounting charge of $622 million to write off all the goodwill
    created by the merger of US Airways Group, Inc. and America West
    Holdings Corporation in September of 2005.

4)  The 2007 second quarter and six month periods include $9 million
     of insurance settlement proceeds related to business interruption
     and property damages incurred as a result of Hurricane Katrina.

5) The 2008 six month period includes $13 million in impairment losses
    on certain available for sale auction rate securities considered
    to be other than temporary, as well as a $2 million write-off of
    debt discount and debt issuance costs in connection with the
    refinancing of certain aircraft equipment notes, offset by $8
    million in gains on forgiveness of debt. The 2007 six month period
    includes an $18 million write-off of debt issuance costs in
    connection with the refinancing of the $1.25 billion GE debt.

6) For the three and six months ended June 20, 2007, the Company
    utilized $5 million and $6 million, respectively, of NOL acquired
    from US Airways. The valuation allowance associated with the
    acquired NOL was recognized as a reduction of goodwill rather than
    a reduction in tax expense. As a result, the Company recorded non-
    cash expense for income taxes of $5 million and $6 million,
    respectively, in the three and six months ended June 30, 2007.

7) The 2007 diluted EPS computation excludes interest associated with
    the 7.0% senior convertible notes of $1 million and $3 million for
    the three and six month periods, respectively.

                        US Airways Group, Inc.
                Condensed Consolidated Balance Sheets
                            (in millions)
                             (unaudited)


                                       June 30, 2008 December 31, 2007
                                       ------------- -----------------
Assets

Current assets
   Cash, cash equivalents and
    investments in marketable
    securities                                2,010             2,174
   Restricted cash                                2                 2
   Accounts receivable, net                     564               374
   Materials and supplies, net                  290               249
   Prepaid expenses and other                   862               548
                                       ------------- -----------------
      Total current assets                    3,728             3,347

Property and equipment
   Flight equipment                           2,704             2,414
   Ground property and equipment                772               703
   Less accumulated depreciation and
    amortization                               (856)             (757)
                                       ------------- -----------------
                                              2,620             2,360
   Equipment purchase deposits                  207               128
                                       ------------- -----------------
      Total property and equipment            2,827             2,488

Other assets
   Goodwill                                       -               622
   Other intangibles, net                       558               553
   Restricted cash                              460               466
   Investments in marketable
    securities                                  285               353
   Other assets, net                            213               211
                                       ------------- -----------------
      Total other assets                      1,516             2,205

      Total assets                           $8,071            $8,040
                                       ============= =================

Liabilities and Stockholders' Equity

Current liabilities
   Current maturities of debt and
    capital leases                              159               117
   Accounts payable                             533               366
   Air traffic liability                      1,286               832
   Accrued compensation and vacation            171               225
   Accrued taxes                                184               152
   Other accrued expenses                       924               859
                                       ------------- -----------------
      Total current liabilities               3,257             2,551

Noncurrent liabilities and deferred
 credits
   Long-term debt and capital leases,
    net of current maturities                 3,205             3,031
   Deferred gains and credits, net              142               168
   Employee benefit liabilities and
    other                                       874               851
                                       ------------- -----------------
      Total noncurrent liabilities and
       deferred credits                       4,221             4,050

Stockholders' equity
   Common stock                                   1                 1
   Additional paid-in capital                 1,554             1,536
   Accumulated other comprehensive
    income (loss)                               (48)               10
   Accumulated deficit                         (901)              (95)
   Treasury stock                               (13)              (13)
                                       ------------- -----------------
      Total stockholders' equity                593             1,439
                                       ------------- -----------------

   Total liabilities and stockholders'
    equity                                   $8,071            $8,040
                                       ============= =================

SOURCE: US Airways

US Airways Group, Inc.
Dan Cravens, 480-693-5729

The shares of common stock are being offered under the Company's existing shelf registration statement, which became automatically effective upon filing with the Securities and Exchange Commission. A prospectus supplement and accompanying prospectus describing the terms of the offering will be filed with the Securities and Exchange Commission. When available, copies of the prospectus supplement and the accompanying prospectus may be obtained from Merrill Lynch & Co., 4 World Financial Center, 250 Vesey St., New York, New York 10080, or by phone at 212-449-1000.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sales of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

US Airways is the fifth largest domestic airline employing more than 35,000 aviation professionals worldwide. US Airways, US Airways Shuttle and US Airways Express operate approximately 3,500 flights per day and serve more than 230 communities in the U.S., Canada, Europe, the Caribbean and Latin America. US Airways is a member of the Star Alliance network, which offers our customers 18,000 daily flights to 965 destinations in 162 countries worldwide. This press release and additional information on US Airways can be found at www.usairways.com. (LCCG)

Forward Looking Statements

Certain of the statements contained herein should be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements may be identified by words such as "may," "will," "expect," "intend," "anticipate," "believe," "estimate," "plan," "could," "should," and "continue" and similar terms used in connection with statements regarding the outlook, expected fuel costs, revenue and pricing environment, and expected financial performance of US Airways Group (the "Company"). Such statements include, but are not limited to, statements about the benefits of the business combination transaction involving America West Holdings Corporation and US Airways Group, including future financial and operating results, the Company's plans, objectives, expectations and intentions, and other statements that are not historical facts. These statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties that could cause the Company's actual results and financial position to differ materially from these statements. Such risks and uncertainties include, but are not limited to, the following: the impact of high fuel costs, significant disruptions in fuel supply and further significant increases to fuel prices; the impact of future significant operating losses; the Company's high level of fixed obligations (including compliance with financial covenants related to those obligations) and the ability of the Company to obtain and maintain any necessary financing for operations and other purposes; the impact of changes in the Company's business model; the ability of the Company to maintain adequate liquidity; changes in prevailing interest rates and increased costs of financing; the impact of economic conditions; the ability of the Company to obtain and maintain commercially reasonable terms with vendors and service providers and reliance on those vendors and service providers; reliance on third party service providers and the impact of any failure or disruption by these providers; labor costs, relations with unionized employees generally and the impact and outcome of the labor negotiations; reliance on automated systems and the impact of any failure or disruption of these systems; the impact of industry consolidation; competitive practices in the industry, including significant fare restructuring activities, capacity reductions or other restructuring or consolidation activities by major airlines; the ability to attract and retain qualified personnel; the impact of global instability including the potential impact of current and future hostilities, terrorist attacks, infectious disease outbreaks or other global events; security-related and insurance costs; government legislation and regulation, including environmental regulation; the Company's ability to obtain and maintain adequate facilities and infrastructure to operate and grow the Company's network; costs of ongoing data security compliance requirements and the impact of any data security breach; interruptions or disruptions in service at one or more of the Company's hub airports; the impact of any accident involving the Company's aircraft; delays in scheduled aircraft deliveries or other loss of anticipated fleet capacity; weather conditions; the cyclical nature of the airline industry; the impact of foreign currency exchange rate fluctuations; the ability to use pre-merger NOLs and certain other tax attributes; ability to integrate management, operations and labor groups; the ability to maintain contracts critical to the Company's operations; the ability of the Company to attract and retain customers; and other risks and uncertainties listed from time to time in the Company's reports to the SEC. There may be other factors not identified above of which the Company is not currently aware that may affect matters discussed in the forward-looking statements, and may also cause actual results to differ materially from those discussed. The Company assumes no obligation to publicly update any forward-looking statement to reflect actual results, changes in assumptions or changes in other factors affecting such estimates other than as required by law. Additional factors that may affect the future results of the Company are set forth in the section entitled "Risk Factors" in the Company's Report on Form 10-Q for the quarter ended June 30, 2008 and in the Company's filings with the SEC, which are available at www.usairways.com

SOURCE: US Airways Group, Inc.

US Airways Group, Inc., Tempe
Dan Cravens, 480-693-5729