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INVESTOR RELATIONS UPDATE
September 27, 2006

General Comments

	•		Profit Sharing / CASM — Profit sharing equals 10% of pre-tax earnings excluding transition expenses and special items up to a 10% pre-tax margin and 15% above the 10% margin. Profit sharing is included in the CASM guidance given below.

	•		Cargo / Other Revenue — Cargo / Other Revenue includes: cargo revenue, ticket change fees, excess/overweight baggage fees, contract services, simulator rental, airport clubs, Materials Service Corporation (MSC), and inflight service revenues.

	•		MSC Reclassification — The Company’s wholly owned subsidiary, Material Services Company (MSC), sells fuel to Mesa Airlines specifically for use on US Airways Express flights operated by Mesa under a regional airline alliance agreement at a price that approximates MSC’s cost. Mesa in turn bills back US Airways under that agreement at the same cost billed by MSC. The costs associated with the regional airline alliance agreement, including fuel, are recorded as express expenses. In the third quarter of 2006, the Company concluded that the net method of reporting the revenue and expense for the MSC fuel sales better reflects the nature of these transactions. Accordingly, the cost of the MSC fuel sales previously reflected in other operating expenses, has been netted against the related revenue reported in other revenues. The expense associated with MSC fuel sales of $18 million in the first quarter and $20 million in the second quarter of 2006 has also been netted against the related other revenue to conform to the current period presentation. As a result, Q106 and Q206 Cargo/Other Revenue, CASM, and CASM ex fuel, special items and transition expenses reflect this reclassification. These changes will have no impact on either operating earnings or net income for the third quarter or nine months ending September 30, 2006.

	•		Fuel — US Airways uses costless collars on Heating Oil Futures as a fuel-hedging vehicle. For Q306, the Company has 44% of its mainline fuel hedged, and expects to pay between $2.18 and $2.23 per gallon of jet fuel (including taxes and hedges). The collar range of the hedges in place is between $1.82 and $2.01 per gallon of heating oil, or between $65.82 and $73.94 per barrel of crude oil. Forecasted volume, fuel prices, hedge percentages, and equivalent price per barrel of crude oil are provided in the table below.

	•		Taxes / NOLs — After the merger, US Airways and America West had a total of approximately $1.4 billion of net operating loss carryforwards (NOL) to shelter future taxable income. Of this amount approximately $1.1 billion is available to shelter federal taxable income in the calendar year 2006. Due to accumulated losses through the years ended December 31, 2005, the Company’s deferred tax asset, which includes the $1.4 billion of NOL discussed above, has been subject to a valuation allowance. As a result, when profitable, the Company’s utilization of those NOL does not result in the recognition of income tax expense for book purposes.

			For Alternative Minimum Tax (AMT) purposes, only 90% of AMT NOL may offset AMT taxable income. Accordingly, of the $1.1 billion of NOL available in 2006, 10% or up to $110 million would be deemed AMT taxable income and therefore subject to tax at the AMT rate of 20%. The Company expects to book tax expense and pay cash taxes associated with AMT in 2006.

	•		Share Count — During Q206, the Company had 85.9 million basic, and 94.7 million diluted weighted average shares outstanding. Both basic and diluted shares guidance is provided in the table below.

	•		Cash — At the end of the second quarter 2006, the Company had approximately $3.2 billion in total cash, of which $2.2 billion was unrestricted.

Please refer to the footnotes and the forward looking statements page of this document for additional information

MAINLINE UPDATE
September 27, 2006

Mainline General Comments

	•		Mainline data includes both US Airways and America West Airlines operated flights. All operating expenses are for mainline operated flights only. Please refer to the following page for information pertaining to Express.

	•		CASM excluding fuel, special items, and transition expenses has been adjusted slightly due to a reduction in ASMs, increased employee incentive/profit sharing, and higher operating costs primarily associated with the increased security measures and enhancing operational performance.


Mainline General Guidance	1Q06A		2Q06A		3Q06E			4Q06E			FY06E
Available Seat Miles (ASMs) (bil)		18.2		19.6		20.2			19.0			77.0
CASM ex fuel, special items, & transition expense (cts) ¹		7.72		7.61		7.25 to 7.35			7.55 to 7.70			7.50 to 7.60
Cargo / Other Revenues ($ mil)		210		205		205 to 215			210 to 220			830 to 850

Fuel Price (incl hedges and taxes)($/gal)		1.92		2.14		2.18 to 2.23			2.00 to 2.05			2.05 to 2.10
Fuel Gallons Consumed (mil)		288		307		~320			~300			~1,210

Percent Hedged						44	%		44	%		43	%
Heating Oil Collar Range ($/gal)						1.82 to 2.01			1.85 to 2.04			1.77 to 1.96
Jet Fuel Equivalent (incl taxes, transport, and refining margin) ($/gal)						2.05 to 2.25			2.04 to 2.23			1.98 to 2.18
Estimated Crude Oil Equivalent ($/bbl)						65.82 to 73.94			65.86 to 73.92			62.97 to 71.03
Interest Expense ($ mil)		75		72		~73			~74			~294
Interest Income ($ mil) ²		26		34		~39			~35			~133

Merger Update ($ mil)
Transition Expense		46		35		~25			~25			~130

Capital Update ($ mil)	FY06

Merger Related		90
Other		70

Total		160
Shares Outstanding ($ and shares mil)	Basic		Diluted		Interest Addback


For Q306 through Q406
Earnings above $39.0		88.5		95.0	$	2.2
Earnings up to $39.0		88.5		90.0		—
Net Loss		88.5		88.5		—

Full Year 2006
Earnings above $375		86.1		94.5	$	13.9
Earnings of $153 to $375		86.1		93.5		9.6
Earnings up to $153		86.1		88.0		—
Net Loss		86.1		86.1		—

Shares outstanding are based upon several estimates including average per share stock price, stock options and restricted stock award activity, and conversion of outstanding notes. The number of shares in the actual calculation of earnings per share will likely be different from those set forth above.


		Notes:

1.		CASM ex fuel, special items & transition expense is a non-GAAP financial measure. Please see the GAAP to non-GAAP reconciliation at the end of this document.

2.		Q206 interest income presented above of $34 mil excludes $7 mil in interest income recorded in Q206 from prior year federal income tax refunds for AWA.

Please refer to the footnotes and the forward looking statements page of this document for additional information

EXPRESS UPDATE
September 27, 2006

Express General Comments

•

US Airways Express is a network of nine regional airlines (2 wholly owned) operating under a code share and service agreement with US Airways and America West Airlines. All operating expenses (including purchase agreements) associated with US Airways Express are included within the Express Non-Fuel Operating Expense line item.

Express General Guidance

1Q06A

2Q06A

3Q06E

4Q06E

FY06E

Available Seat Miles (ASMs) (bil)

3.7

3.8

15.0

CASM ex fuel (cts) ¹

12.12

11.75 to 12.00

11.50 to 11.75

11.75 to 12.00

Fuel Price (incl taxes) ($/gal)

2.00

2.27

2.20 to 2.25

1.95 to 2.00

2.08 to 2.13

Fuel Gallons Consumed (mil)

~95

~365

Express Carriers

Air Midwest Airlines, Inc. ⁴

Air Wisconsin Airlines Corporation

Chautauqua Airlines, Inc.

Colgan Air, Inc. ⁴

Mesa Airlines ³

Piedmont Airlines, Inc. ²

PSA Airlines, Inc ²

Republic Airways

Trans States Airlines, Inc. ⁴


		Notes:

1.		CASM ex fuel expense is a non-GAAP financial measure. Please see the GAAP to non-GAAP reconciliation at the end of this document.

2.		Wholly owned subsidiary of US Airways Group, Inc.

3.		Subsidiary of Mesa Air Group, Inc

4.		Pro-rate agreement

Please refer to the footnotes and the forward looking statements page of this document for additional information

FLEET UPDATE
September 27, 2006

Fleet General Comments

	•		As previously announced, the airline has a firm order for 25 Embraer 190 aircraft. The delivery schedule will begin with 2 in 4Q06, 9 in 2007, and 14 in 2008. (One 4Q06 delivery has now moved to 1Q07).

	•		On July 24, 2006 the Company announced that it and Republic Airways Holdings have amended the existing partnership and will be adding 30 Embraer 175 aircraft to replace 20 existing 50 seat Embraer 145 aircraft currently operated by Republic Airways Holdings’ subsidiary, Chautauqua Airlines. The remaining 10 aircraft can replace other retiring aircraft, or be used for limited growth in 2008. The 50 seat aircraft will begin to be returned to Republic at the beginning of 2007. Deliveries of the E175 aircraft are scheduled to begin in 2007 at a rate of 1-2 airplanes per month through the summer of 2008.

	•		On August 30, 2006 the Company announced that it had restructured and added seven new Airbus A321s to an existing order for 30 A320 family aircraft. The amendment also converted one A320 aircraft and seven A319 aircraft to an order of eight A321 aircraft. Deliveries of the 15 new A321 aircraft will begin in 2008 and run through 2010. The new A321s will be configured to 183 passengers in two classes of service and will be used for replacement purposes or modest expansion should market conditions warrant.

Mainline Fleet Update (End of Period)


	1Q06A		2Q06A		3Q06E		4Q06E		FY06E
Mainline
ERJ-190		0		0		0		2		2
737-300		63		58		56		56		56
737-400		40		40		40		40		40
A319		93		93		93		93		93
A320		77		75		75		75		75
A321		28		28		28		28		28
A330		9		9		9		9		9
B757		47		46		46		46		46
B767		10		10		10		10		10

Total		367		359		357		359		359

Express Fleet Update (End of Period)


	1Q06A		2Q06A		3Q06E		4Q06E		FY06E
Express
DH8 (100/200/300)		65		63		63		60		60
CRJ-200		123		123		123		123		123
CRJ-700		14		14		14		14		14
CRJ-900		38		38		38		38		38
EMB-145		38		30		30		30		30
ERJ-170		28		28		28		28		28

Total		306		296		296		293		293

Please refer to the footnotes and the forward looking statements page of this document for additional information

GAAP to Non-GAAP RECONCILIATION
September 27, 2006

Reconciliation of GAAP 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 CASM excluding fuel, special items & transition expense and Express CASM excluding fuel 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.

This update contains forward-looking statements that are not limited to historical facts, but reflect the Company’s current beliefs, expectations or intentions regarding future events. All forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. For examples of such risks and uncertainties, please see the risk factors set forth in the Company’s Form 10-Q for the quarter ended June 30, 2006, and its other securities filings, including any amendments thereto, which identify important matters such as the consequences of fuel, labor costs, competition, and industry conditions, including the demand for air travel, the airline pricing environment and industry capacity decisions, regulatory matters and the seasonal nature of the airline business. The Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this update.


	GAAP to Non-GAAP Reconciliation ($mil except ASM and CASM data)
						Q306 Range				Q406 Range				FY06 Range
	Q106 Actual			Q206 Actual		Low		High		Low		High		Low			High
Mainline
Mainline Operating Expenses	$	1,890		$	2,169	$	2,187	$	2,223	$	2,059	$	2,102	$	8,296		$	8,433
Less Mainline Fuel (net of gains from fuel hedges)		527			640		698		714		600		615		2,481			2,541
Less Special Charges		(90	)		—		—		—		—		—		(90	)		(90	)
Less Transition Expenses		46			35		25		25		25		25		130			130

Mainline Operating Expense excluding fuel, charges, and transition expense		1,408			1,494		1,465		1,485		1,434		1,462		5,775			5,852

Mainline CASM (GAAP) (cts)		10.37			11.05		10.83		11.01		10.84		11.07		10.77			10.95
Mainline CASM excluding fuel, special items, and transition expenses (Non-GAAP) (cts)		7.72			7.61		7.25		7.35		7.55		7.70		7.50			7.60

Mainline ASMs (bil)		18.2			19.6		20.2		20.2		19.0		19.0		77.0			77.0

Express
Express Operating Expenses	$	616		$	660	$	656	$	671	$	623	$	637	$	2,526		$	2,582
Less Express Fuel Expense		172			203		209		214		185		190		759			777

Express Operating Expenses excluding Fuel		444			457		447		457		437		447		1,767			1,805
Express CASM (GAAP) (cts)		16.82			17.51		17.24		17.61		16.37		16.75		16.80			17.17
Express CASM Excluding Fuel (Non-GAAP) (cts)		12.12			12.12		11.75		12.00		11.50		11.75		11.75			12.00
Express ASMs (bil)		3.7			3.8		3.8		3.8		3.8		3.8		15.0			15.0

Please refer to the footnotes and the forward looking statements page of this document for additional information

FORWARD-LOOKING STATEMENTS
September 27, 2006

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,” “indicate,” “anticipate,” “believe,” “forecast,” “estimate,” “plan,” “guidance,” “outlook,” “could,” “should,” “continue” and similar terms used in connection with statements regarding the outlook of US Airways Group, Inc. (the “Company”). Such statements include, but are not limited to, statements about expected fuel costs, the revenue and pricing environment, the Company’s expected financial performance and operations, future financing plans and needs, overall economic conditions and the benefits of the business combination transaction involving America West Holdings Corporation and US Airways Group, including future financial and operating results and the combined companies’ plans, objectives, expectations and intentions. Other forward-looking statements that do not relate solely to historical facts include, without limitation, statements that discuss the possible future effects of current known trends or uncertainties or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. Such 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 the Company’s expectations. Such risks and uncertainties include, but are not limited to, the following: the ability of the Company to obtain and maintain any necessary financing for operations and other purposes (including compliance with financial covenants); the ability of the Company to maintain adequate liquidity; the ability of the Company to merge its operations following the merger involving America West Holdings Group; the impact of further increases in fuel prices; the impact of general economic conditions; changes in prevailing interest rates; the ability to attract and retain qualified personnel; the ability of the Company to attract and retain customers; the ability of the Company to obtain and maintain commercially reasonable terms with vendors and service providers; the cyclical nature of the airline industry; competitive practices in the industry, including significant fare restructuring activities by major airlines; potential failures or disruptions of the Company’s computer, communications or other technology systems; labor costs; security-related and insurance costs; weather conditions; government legislation and regulation of the Company’s operations; relations with unionized employees generally and the impact and outcome of ongoing labor negotiations; the impact of global instability including the potential impact of current and future hostilities, terrorist attacks, infectious disease outbreaks or other global events that affect travel behavior; the impact of the resolution of remaining claims in US Airways Group’s Chapter 11 proceedings; the ability of the Company to fund and execute its business plan following the Chapter 11 proceedings and the merger; and other risks and uncertainties listed from time to time in the Company’s reports to the Securities and Exchange Commission. 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. All forward-looking statements are based on information currently available to the Company. The Company assumes no obligation to p ublicly update or revise any forward-looking statement to reflect actual results, changes in assumptions or changes in other factors affecting such estimates. Additional factors that may affect the future results of the Company are set forth in the section entitled “Risk Factors” in the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2006, which is available at www.usairways.com.

Please refer to the footnotes and the forward looking statements page of this document for additional information