US AIRWAYS GROUP REPORTS SECOND QUARTER RESULTS Second Quarter Net Income of

US AIRWAYS GROUP REPORTS SECOND QUARTER RESULTS

Second Quarter Net Income of $13 Million Reflects
$214 Million TSA Reimbursement

Pre-Tax Loss of $154 Million Excluding Unusual Items -- $188 Million
Year-Over-Year Improvement Excluding $92 Million in Non-Cash Stock Charge

Company Continues to Execute Restructuring Plan
While Still Experiencing Weak Industry Conditions

ARLINGTON, Va., July 28, 2003 -- US Airways Group, Inc. today reported net income of $13 million for the second quarter 2003. This compares to a net loss of $248 million for the second quarter 2002.

Pre-tax income for the second quarter 2003 was $26 million compared to a pre-tax loss of $259 million in the second quarter of 2002. Results for the current quarter reflect a number of unusual items, described in Note 4 below, including a $214 million cash payment from the Transportation Security Administration (TSA) under the 2003 Emergency Wartime Supplemental Appropriations Act.

Excluding the unusual items described in Note 4, the loss before income taxes was $154 million for the second quarter of 2003, compared to a pre-tax loss of $250 million in the second quarter of last year. This improvement of $96 million year-over-year includes $92 million of non-cash stock-based compensation expenses related to stock granted to employees covered by collective bargaining agreements in connection with the company's emergence from bankruptcy on March 31, 2003. If excluding this stock charge, year-over-year improvement is $188 million. The relative improvement reflects the cost reductions put in place during the Chapter 11 reorganization, partially offset by lower passenger revenues and higher fuel costs.

"These results echo what virtually every major network carrier experienced in the second quarter through a combination of a weak economy and the impact of the Iraqi War," said David N. Siegel, US Airways president and chief executive officer. "Nevertheless, we have made great strides in executing the key elements of our restructuring plan related to increasing revenue, reducing costs, and improving liquidity, all against the backdrop of a challenging industry environment."

The second quarter 2003 US Airways mainline Revenue per Available Seat Mile (RASM) of 11.08 cents was up 1.1 percent compared to the second quarter of 2002. US Airways' mainline Passenger Revenue per Available Seat Mile (PRASM) of 9.88 cents was up 0.4 percent year-over-year for the quarter, while the rest of the industry* was up 0.1 percent. US Airways outpaced the industry* in year-over-year PRASM performance by 0.3 percentage points. This was driven by a 1.9 percentage point superior performance in the domestic market, partially offset by weaker transatlantic routes. While industry revenue performance remains weak, for the quarter, US Airways regained a domestic PRASM premium relative to the industry*, adjusted for length of haul, for the first time since the fourth quarter of 1999.

"As the industry began to recover from the impact of the Iraqi War, passenger loads built steadily throughout the quarter and June's load factor was a record for any month in the history of the company," said B. Ben Baldanza, US Airways senior vice president of marketing and planning. "Our initiatives to strengthen revenue are clearly enhancing our performance relative to the industry, but the industry revenue environment as a whole continues to be weak as the industry 'buys' its load factor with lower prices."

Available Seat Miles (ASMs) declined 11.0 percent, while Revenue Passenger Miles (RPMs) for the quarter declined 10.5 percent, resulting in a passenger load factor of 75.4 percent, a year-over-year increase of 0.3 percentage points. For the second quarter, US Airways Inc.'s mainline operations carried 10.9 million passengers, a decline of 16.4 percent compared to the same period of 2002. The second quarter 2003 yield of 13.10 cents was down 0.1 percent from the same period in 2002.

The mainline Cost per Available Seat Mile (CASM), excluding fuel and unusual items, of 10.75 cents for the quarter decreased 2.2 percent versus the same period of 2002. Mainline CASM includes $92 million or 0.71 cents per ASM of stock-based compensation related to stock grants given to US Airways' organized labor groups. Absent this stock charge, year-over-year CASM, excluding fuel and unusual items, declined 8.6 percent. CASM, excluding fuel and unusual items, provides management and investors the ability to measure and monitor US Airways' performance absent the significant price volatility of fuel and is more indicative of the company's operating performance.

For the quarter, US Airways continued to demonstrate strong operating reliability. The carrier's mainline departure completion factor for the quarter was 99.6 percent, and its on-time arrival performance averaged 81 percent for the three-month period. Along with a record load factor for the month of June, self-service check-in kiosk usage by customers is now at 54 percent of all eligible electronic ticketed passengers. US Airways now has 435 kiosks located in 81 airports systemwide and has implemented curbside boarding pass capabilities at its hubs in Charlotte, Philadelphia, and Pittsburgh, with additional locations to be added soon.

The cost of aviation fuel per gallon, including taxes, for the period was 84.9 cents, up 22.5 percent from the same period in 2002.

US Airways Group ended the quarter with total restricted and unrestricted cash of $2.0 billion, including $1.42 billion in unrestricted cash, cash equivalents and short-term investments. This represents a $157 million increase in unrestricted cash during the quarter.

"We are encouraged by the fact that our liquidity position relative to the industry remains superior despite significant debt issuance and asset sales by other airlines in the second quarter," said Neal S. Cohen, US Airways executive vice president of finance and chief financial officer. "The industry outlook, however, continues to remain uncertain and we must remain focused on reducing costs in this revenue environment."

Highlights from the second quarter include:

· Adjusted for length of haul, US Airways achieved PRASM at 100.4 percent of industry* average, its first quarterly premium since 1999.

· Through US Airways' marketing alliance with United Airlines, customers now can fly on 2,400 combined codeshare flights to about 120 cities. US Airways Dividend Miles members and United Mileage Plus members also can reserve and redeem award travel on either carrier.

· US Airways signed a Memorandum of Understanding with Lufthansa Airlines, covering the establishment of a long-term strategic alliance, with implementation and codesharing to begin in October 2003.

· US Airways was invited to join the Star Alliance, the largest airline alliance in the world. Implementation is scheduled to begin in early 2004, and will bring customers better service with each of the 16 member airlines through check-in, reciprocal frequent flyer benefits and airport lounge access, as well as codesharing relationships with certain of the carriers.
· US Airways placed the industry's largest-ever firm order for regional jet aircraft from Bombardier Aerospace of Canada and Embraer of Brazil. The first aircraft delivery is scheduled for October 2003. US Airways' MidAtlantic Airways division will be the launch customer for the Embraer 170/175 series of aircraft.

· In partnership with the city of Philadelphia, US Airways opened the most modern international gateway airport in the U.S., and also inaugurated new European service between Philadelphia and both Shannon and Dublin, Ireland.

· US Airways announced new service this quarter to San Jose, Costa Rica, and Mexico City, both scheduled to start in the fall of 2003. The airline also announced nearly a dozen new routes or additional frequencies to the Caribbean for the upcoming winter travel season. US Airways and US Airways Express along with the GoCaribbean Network partners now provide access to over 30 destinations in the Caribbean and Latin America.

· US Airways enhanced usairways.com, with the addition of electronic upgrades, flight check-in, ticket re-issues, and Dividend Miles award redemption.

· US Airways was the first major U.S. airline to roll out a buy-on-board meal service system wide. The In-flight Café meal service is on 324 domestic flights of 700 miles or more, representing 25.4 percent of all daily mainline departures.

A conference call will be held with analysts from the investment community at 1 p.m., Eastern time. All parties are invited to listen via a special Webcast on US Airways' Web site at usairways.com, http://investor.usairways.com/medialist.cfm. Participants must log on at least five minutes prior to the call in order to register. An archive of the conference call also will be available at usairways.com for one year following the call. A telephone replay of the call will be available through 1 p.m., Eastern time, July 31, 2003, by calling 973-341-3080, PIN 4049826.

The Webcast must be accessed using Real Player, which can be installed on your computer through the US Airways Web site by following the instructions shown on the Presentations page (URL listed above). The download is free and should take approximately 10 minutes.

* Carriers reporting data to the Air Transport Association

Certain of the information contained herein should be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, that reflect the company's current views with respect to current events and financial performance. Such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the company's operations and business environment which may cause the actual results of the company to be materially different from any future results, express or implied, by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: the ability of the company to operate pursuant to the terms of its financing facilities; the ability of the company to obtain and maintain normal terms with vendors and service providers; the company's ability to maintain contracts that are critical to its operations; the ability of the company to fund and execute its business plan; the ability of the company to attract, motivate and/or retain key executives and associates; the ability of the company to attract and retain customers; the ability of the company to maintain satisfactory labor relations; demand for transportation in the markets in which the company operates; economic conditions; labor costs; financing availability and costs; aviation fuel costs; security-related costs; competitive pressures on pricing (particularly from lower-cost competitors) and on demand (particularly from low cost carriers and multi-carrier alliances); weather conditions; government legislation and regulation; impact of the Iraqi war; other acts of war or terrorism; the commencement of public trading and market acceptance of the company's new common stock; and other risks and uncertainties listed from time to time in the company's reports to the United States Securities and Exchange Commission. Other factors and assumptions not identified above are also involved in the preparation of forward-looking statements, and the failure of such other factors and assumptions to be realized may also cause actual results to differ materially from those discussed. The company assumes no obligation to update such estimates to reflect actual results, changes in assumptions or changes in other factors affecting such estimates other than as required by law.