EXHIBIT 99.1

(AMERICA WEST HOLDINGS COPORATION NEWS RELEASE LOGO)

Contact: Elise Eberwein
480/693-5729

FOR IMMEDIATE RELEASE: July 21, 2005

AMERICA WEST REPORTS SECOND QUARTER RESULTS
Airline Posts Quarterly Profit

Highlights include:

	•		Net profit for the second quarter 2005 was $13.9 million or $0.29 per diluted share versus a net profit of $10.7 million or $0.20 per diluted share for the Company’s second quarter 2004. Excluding special items, the airline’s second quarter 2005 net income was $20.9 million or $0.41 per diluted share versus $3.5 million or $0.07 per share in the second quarter of 2004.

	•		Passenger revenue per available seat mile (RASM) increased 11.9 percent compared to the same period last year, which was driven by a 6.5 percent increase in yield and a 4.0 point increase in load factor.

	•		Operating cost per available seat mile (CASM) increased 12.2 percent to 8.58 cents from 7.65 cents from the same period last year, primarily driven by a 43.0 percent increase in average fuel price. CASM excluding fuel, fuel hedging and special items increased 2.7 percent to 6.17 cents from the same period last year.

	•		Total cash, cash equivalents, short-term investments and restricted cash at the end of the Company’s second quarter 2005 was $413.9 million, of which $322.3 million was unrestricted.

PHOENIX—America West Holdings Corporation (NYSE:AWA), parent company of America West Airlines, Inc., today reported second quarter 2005 net income of $13.9 million or $0.29 per diluted share. This compares to a net profit of $10.7 million or $0.20 per diluted share for the same period last year. The Company’s second quarter 2005 profit included a $2.7 million unrealized loss associated with the Company’s fuel hedging transactions and a $4.3 million loss on the sale and leaseback of an aircraft acquired during the period. The second quarter 2004 results included an unrealized gain on fuel hedging transactions of $7.2 million. Excluding these special items, the airline’s second quarter 2005 net income was $20.9 million or $0.41 per diluted share versus net income of $3.5 million or $0.07 per diluted share in the second quarter 2004. See the accompanying notes in the Financial Tables section of this press release for a reconciliation of Generally Accepted Accounting Principles (GAAP) financial information to non-GAAP financial information.

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Chairman and CEO Doug Parker stated, “We are pleased to report an improvement in year-over-year earnings despite a 43 percent increase in average fuel price. Our 14,000 employees did a terrific job of taking care of a record number of passengers and these results reflect their efforts. We are particularly pleased with our nearly 12 percent increase in passenger revenue per available seat mile, which we believe will be the greatest improvement by any major carrier.

“Our proposed merger with US Airways is well on track with $565 million of committed equity, Department of Justice approval and teams from both companies working diligently on integration. We continue to anticipate closing this important transaction in the fall.”

Revenue and Cost Performance

The airline’s operating revenues increased 20.0 percent to $833.0 million during its second quarter 2005 compared to the same period last year. Revenue passenger miles (RPMs) during the second quarter increased 8.0 percent to a record 6.4 billion on increased available seat miles (ASMs) of 2.7 percent. This resulted in a second quarter 2005 load factor of 82.3 percent versus the second quarter 2004 load factor of 78.3 percent. The increase in load factor, along with a 6.5 percent increase in the airline’s yield during its second quarter 2005, contributed to an 11.9 percent increase in RASM during the second quarter 2005 as compared to the same period last year.

The airline’s operating cost per available seat mile (CASM) increased 12.2 percent to 8.58 cents during its second quarter 2005, led primarily by a 43.6 percent increase in total fuel expenses. CASM excluding fuel, fuel hedging and special items increased 2.7 percent to 6.17 cents. On average, the airline paid $1.67 per gallon for fuel during the second quarter 2005, an increase of 43.0 percent over the per gallon price paid in the same period last year. The airline hedged approximately 58 percent of its fuel during its second quarter 2005, realizing gains on fuel hedging instruments of $11.4 million that reduced total fuel expense. Including these gains, the average net fuel price was $1.57 per gallon.

Chief Financial Officer Derek Kerr said, “While we are pleased with our revenue performance these improvements are not enough to offset the ongoing high price of fuel. Fuel expense for the quarter was the Company’s greatest expense item, exceeding even salaries and benefits for only the second time in Company history, and we do not see any signs of this trend altering itself in the foreseeable future.”

Liquidity

As of June 30, 2005, the Company had $413.9 million in cash and investments, of which $322.3 million was unrestricted.

Additional Marketing/Business Developments

	•		Announced increased service between the U.S. and Jordan through its code-share agreement with partner Royal Jordanian Airlines.

	•		Continued to grow Las Vegas by introducing service to six new markets: Bakersfield, Pittsburgh, Long Beach, Anchorage, Oklahoma City, and Monterey, Calif.

	•		Celebrated a “Three-Peat” when FlightFund, the airline’s loyalty program, earned the Freddie Award’s “Best Elite Program” recognition for the third straight year.

	•		Introduced a unique brand of in-flight entertainment with Cranium, Inc., which offers passengers fun and innovative games on video-equipped aircraft.

	•		Partnered with Vegas.com to offer tickets to Las Vegas’ premier shows and LookTours.com, which offers activity packages for passengers’ vacations.

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Analyst Conference Call/Webcast Details

America West will conduct a live audio webcast of its earnings call today at 1:00 p.m. EDT, which will be available to the public on a listen-only basis at www.americawest.com <http://www.americawest.com> under the About AWA/Investor Relations tab. A replay of today’s call will be available in the About AWA/Investor Relations portion of the airline’s Web site through August 21, 2005.

America West Holdings Corporation is an aviation and travel services company. Wholly owned subsidiary America West Airlines is the nation’s second largest low-fare carrier with 14,000 employees serving approximately 60,000 customers a day in more than 90 destinations in the U.S., Canada, Mexico and Costa Rica.

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 our outlook, expected fuel costs, the revenue environment, our expected 2005 financial performance and the proposed merger with US Airways Group, Inc. (“US Airways” and, together with America West Holdings Corporation, the “companies”). Such statements include, but are not limited to, statements about the benefits of the business combination transaction involving the companies, including future financial and operating results, the companies’ plans, objectives, expectations and intentions and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of the companies’ management and are subject to significant risks and uncertainties that could cause the companies’ actual results and financial position to differ materially from these statements. Such risks and uncertainties include, but are not limited to, the following: the ability of the companies to obtain and maintain any necessary financing for operations and other purposes, whether debtor-in-possession financing, in the case of US Airways, or other financing; the ability of the companies to maintain adequate liquidity; the duration and extent of the current soft economic conditions; the impact of global instability caused by military actions, terrorism, disease outbreaks and natural disasters; limitations on the companies’ flexibility in responding to industry conditions due to high fixed costs and restrictions imposed by debt instruments; changes in prevailing interest rates; the ability to attract and retain qualified personnel; the ability of the companies to attract and retain customers; the cyclical nature of the airline industry; competitive practices in the industry, including significant fare restructuring activities by major airlines; the impact of historically high fuel prices; economic conditions; reliance on automated systems and the impact of any failure of those systems; labor costs; security-related and insurance costs; weather conditions; government legislation and regulation; relations with unionized employees generally and the impact and outcome of the labor negotiations; US Airways ability to continue as a going concern; US Airways’ ability to obtain court approval with respect to motions in the Chapter 11 proceedings prosecuted by it from time to time; the ability of US Airways to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 proceedings; risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for US Airways to propose and confirm one or more plans of reorganization, to appoint a Chapter 11 trustee or to convert the cases to Chapter 7 cases; the ability of US Airways to obtain and maintain normal terms with vendors and service providers; US Airways’ ability to maintain contracts that are critical to its operations; the potential adverse impact of the Chapter 11 proceedings on US Airways’ liquidity or results of operations; the ability of US Airways to operate pursuant to the terms of its financing facilities (particularly the financial covenants); the ability of US Airways to fund and execute its Transformation Plan during the Chapter 11 proceedings and in the context of a plan of reorganization and thereafter; and other risks and uncertainties listed from time to time in the companies’ reports to the SEC. There may be other factors not identified above of which the companies are 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 companies assume 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. Similarly, these and other factors, including the terms of any reorganization plan of US Airways ultimately confirmed, can affect the value of the US Airways’ various prepetition liabilities, common stock and/or other equity securities. Accordingly, the companies urge that the appropriate caution be exercised with respect to existing and future investments in any of these liabilities and/or securities. Additional factors that may affect the future results of America West Holding Company and US Airways are set forth in their respective filings with the SEC, which are available at http://www.shareholder.com/americawest/edgar.cfm and http://investor.usairways.com/edgar.cfm, respectively.

ADDITIONAL INFORMATION AND WHERE TO FIND IT
In connection with the proposed transaction, US Airways has filed a registration statement, including a proxy statement of America West, and other materials with the Securities and Exchange Commission (the “SEC”). WE URGE INVESTORS TO READ THE REGISTRATION STATEMENT AND PROXY STATEMENT AND THESE OTHER MATERIALS CAREFULLY BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors may obtain free copies of the registration statement and proxy statement, as well as other filed documents containing information about US Airways and America West at http://www.sec.gov, the SEC’s website. Free copies of America West’s SEC filings are also available on America West’s website at http://www.shareholder.com/americawest/edgar.cfm, or by request to Investor Relations, America West Holdings Corporation, 111 West Rio Salado Pkwy, Tempe, Arizona 85281. Free copies of US Airways’ SEC filings are also available on US Airways’ website at http://investor.usairways.com/edgar.cfm or by request to Investor Relations, US Airways Group, Inc., 2345 Crystal Drive, Arlington, VA 22224.

This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there by any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

PARTICIPANTS IN THE SOLICITATION
America West, US Airways and their respective executive officers and directors may be deemed, under SEC rules, to be participants in the solicitation of proxies from America West’s stockholders with respect to the proposed transaction. Information regarding the officers and directors of America West is included in its definitive proxy statement for its 2005 Annual Meeting filed with the SEC on April 15, 2005. Information regarding the officers and directors of US Airways is included in its 2004 Annual Report filed with the SEC on Form 10-K on March 1, 2005. More detailed information regarding the identity of potential participants, and their interests in the solicitation, is set forth in the registration statement and proxy statement and other materials filed with the SEC in connection with the proposed transaction.

Financial Tables to Follow

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America West Holdings Corporation
Condensed Consolidated Statements of Operations
(in thousands except per share amounts)
(unaudited)


	3 Months Ended			3 Months Ended			Percent			6 Months Ended			6 Months Ended			Percent
	June 30, 2005			June 30, 2004			Change			June 30, 2005			June 30, 2004			Change

Operating revenues:
Passenger	$	654,893		$	569,166			15.1		$	1,230,306		$	1,106,499			11.2
Express		129,426			85,466			51.4			232,782			158,117			47.2
Cargo		8,126			6,817			19.2			16,770			13,720			22.2
Other		40,752			32,709			24.6			76,151			65,149			16.9

Total operating revenues		833,197			694,158			20.0			1,556,009			1,343,485			15.8


Operating expenses:
Salaries and related costs		173,752			161,977			7.3			348,900			328,252			6.3
Aircraft rental		80,673			75,346			7.1			157,510			150,531			4.6
Rentals and landing fees		45,727			42,011			8.8			87,266			83,252			4.8
Aircraft fuel		191,006			132,977			43.6			342,869			247,189			38.7
Loss (gain) on fuel hedging instruments, net:
Realized		(11,344	)		(2,297	)		—			(22,879	)		(5,197	)		—
Unrealized		2,671			(7,188	)		—			(46,277	)		(4,692	)		—
Agency commissions		6,710			6,253			7.3			12,264			13,003			(5.7	)
Aircraft maintenance materials and repairs		49,359			52,350			(5.7	)		97,347			102,404			(4.9	)
Depreciation and amortization		11,587			12,587			(7.9	)		23,447			26,378			(11.1	)
Special charges, net		—			—			—			811			(600	)		—
Express expenses
Fuel		44,304			23,644			87.4			76,662			41,097			86.5
Other		91,744			66,158			38.7			170,212			122,007			39.5
Other		116,731			104,525			11.7			227,521			198,957			14.4

Total operating expenses		802,920			668,343			20.1			1,475,653			1,302,581			13.3


Operating income		30,277			25,815			17.3			80,356			40,904			96.5


Nonoperating income (expenses):
Interest income		2,476			1,779			39.2			4,375			3,297			32.7
Interest expense, net		(19,736	)		(19,237	)		2.6			(38,715	)		(38,989	)		(0.7	)
Gain on disposition of property and equipment		334			1,437			(76.8	)		428			2,079			(79.4	)
Other, net		557			867			(35.8	)		1,041			1,807			(42.4	)

Total nonoperating expenses, net		(16,369	)		(15,154	)		8.0			(32,871	)		(31,806	)		3.3


Income before income tax expense		13,908			10,661			30.5			47,485			9,098			—


Income tax expense		—			—			—			—			—			—


Net income	$	13,908		$	10,661			30.5		$	47,485		$	9,098			—


Earnings per share:
Basic	$	0.39		$	0.30			28.7		$	1.32		$	0.25			—

Diluted	$	0.29		$	0.20			46.1		$	0.92		$	0.17			—


Shares used for computation:
Basic		36,032			36,005			0.1			36,015			35,928			0.2

Diluted		53,553			52,020			2.9			62,551			52,070			20.1

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America West Airlines, Inc.
Consolidated Statements of Operations
(in thousands)
(unaudited)


	3 Months Ended			3 Months Ended			Percent			6 Months Ended			6 Months Ended			Percent
	June 30, 2005			June 30, 2004			Change			June 30, 2005			June 30, 2004			Change

Operating revenues:
Passenger	$	654,893		$	569,166			15.1		$	1,230,306		$	1,106,499			11.2
Express		129,426			85,466			51.4			232,782			158,117			47.2
Cargo		8,126			6,817			19.2			16,770			13,720			22.2
Other		40,582			32,539			24.7			75,811			64,809			17.0

Total operating revenues		833,027			693,988			20.0			1,555,669			1,343,145			15.8


Operating expenses:
Salaries and related costs		173,399			161,617			7.3			348,252			327,546			6.3
Aircraft rental		80,673			75,346			7.1			157,510			150,531			4.6
Rentals and landing fees		45,727			42,011			8.8			87,266			83,252			4.8
Aircraft fuel		191,006			132,977			43.6			342,869			247,189			38.7
Loss (gain) on fuel hedging instruments, net:
Realized		(11,344	)		(2,297	)		—			(22,879	)		(5,197	)		—
Unrealized		2,671			(7,188	)		—			(46,277	)		(4,692	)		—
Agency commissions		6,710			6,253			7.3			12,264			13,003			(5.7	)
Aircraft maintenance materials and repairs		49,359			52,350			(5.7	)		97,347			102,404			(4.9	)
Depreciation and amortization		11,587			12,587			(7.9	)		23,447			26,378			(11.1	)
Special charges, net		—			—			—			811			(600	)		—
Express expenses
Fuel		44,304			23,644			87.4			76,662			41,097			86.5
Other		91,744			66,158			38.7			170,212			122,007			39.5
Other		115,469			103,779			11.3			225,518			197,591			14.1

Total operating expenses		801,305			667,237			20.1			1,473,002			1,300,509			13.3


Operating income		31,722			26,751			18.6			82,667			42,636			93.9


Nonoperating income (expenses):
Interest income		4,021			3,418			17.6			7,485			6,619			13.1
Interest expense, net		(21,448	)		(20,948	)		2.4			(42,118	)		(42,410	)		(0.7	)
Gain on disposition of property and equipment		334			1,437			(76.8	)		428			2,079			(79.4	)
Other, net		557			867			(35.8	)		1,041			1,807			(42.4	)

Total nonoperating expenses, net		(16,536	)		(15,226	)		8.6			(33,164	)		(31,905	)		3.9


Income before income tax expense		15,186			11,525			31.8			49,503			10,731			—


Income tax expense		—			—			—			—			—			—


Net income	$	15,186		$	11,525			31.8		$	49,503		$	10,731			—

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America West Airlines, Inc.
Mainline Operating Statistics
(Excluding Express Operations)


	3 Months Ended		3 Months Ended		Percent			6 Months Ended		6 Months Ended		Percent
	June 30, 2005		June 30, 2004		Change			June 30, 2005		June 30, 2004		Change
Revenue passenger miles (in millions)		6,386		5,915		8.0			12,057		11,222		7.4
Available seat miles (ASM) (in millions)		7,755		7,552		2.7			15,057		14,904		1.0
Passenger load factor (percent)		82.3		78.3	4.0		pts		80.1		75.3	4.8		pts
Yield per revenue passenger mile (cents)		10.25		9.62		6.5			10.20		9.86		3.4
Passenger revenue per ASM (cents)		8.44		7.54		11.9			8.17		7.42		10.1
Total revenue per available seat mile (cents)		9.07		8.06		12.5			8.79		7.95		10.6

Passenger enplanements (in thousands)		5,752		5,343		7.7			10,924		10,241		6.7
Aircraft (end of period)		143		140		2.1			143		140		2.1
Average daily aircraft utilization (hours)		11.1		11.0		0.9			11.1		10.9		1.8
Block hours		143,365		139,202		3.0			279,862		275,880		1.4
Average stage length (miles)		1,037		1,058		(2.0	)		1,030		1,047		(1.6	)
Average passenger journey (miles)		1,681		1,692		(0.7	)		1,653		1,644		0.5
Fuel consumption (gallons in millions)		114.5		113.9		0.5			221.7		222.4		(0.3	)
Average fuel price (cents per gallon)		166.9		116.7		43.0			154.7		111.2		39.1
Average fuel price including realized gains on fuel hedging instruments, net (cents)		157.0		114.7		36.9			144.4		108.8		32.7
Average number of full-time equivalent employees		12,200		11,936		2.2			12,177		11,881		2.5

Operating cost per ASM (cents)		8.58		7.65		12.2			8.14		7.63		6.7
Operating cost per ASM excluding special items (cents)		8.49		7.74		9.7			8.39		7.67		9.4
Operating cost per ASM excluding special items, fuel and realized gains on fuel hedging instruments, net (cents)		6.17		6.01		2.7			6.27		6.04		3.8

The Company is using the term mainline to reflect operating statistics and financial measures associated with aircraft operated by America West.

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Reconciliation of GAAP Financial Information to Non-GAAP Financial Information

The Company believes that the presentation of certain non-GAAP financial measures such as net income (loss) and CASM excluding special items is useful to investors because it is more indicative of the Company’s true recurring operating performance and more comparable to financial measures reported by other major airlines that are submitted to the Department of Transportation. The Company believes that the presentation of CASM excluding fuel and gains and losses on fuel hedging instruments is useful to investors because it provides the ability to monitor the airline’s cost performance absent fuel price volatility, which is subject to many economic and political factors and therefore beyond the Company’s control.

Reconciliation of Net Income Excluding Special Items


	3 Months Ended		3 Months Ended			6 Months Ended			6 Months Ended
	June 30, 2005		June 30, 2004			June 30, 2005			June 30, 2004
	(in millions except per share amounts)
Net income used to calculate basic earnings per share:
Net income as reported	$	13.9	$	10.7		$	47.5		$	9.1
Special items:
Special charges (1)		—		—			0.8			—
Revision of estimated special charges (2)		—		—			—			(0.6	)
Loss on aircraft sale leaseback transaction (3)		4.3		—			8.0			—
Unrealized (gain) loss on fuel hedging instruments, net (4)		2.7		(7.2	)		(46.3	)		(4.7	)

Net income, as adjusted for special items	$	20.9	$	3.5		$	10.0		$	3.8


Basic earnings per share	$	0.39	$	0.30		$	1.32		$	0.25
Special items:
Special charges		—		—			0.02			—
Revision of estimated special charges		—		—			—			(0.01	)
Loss on aircraft sale leaseback transaction		0.12		—			0.22			—
Unrealized (gain) loss on fuel hedging instruments, net		0.07		(0.20	)		(1.28	)		(0.13	)

Basic earnings per share, as adjusted for special items	$	0.58	$	0.10		$	0.28		$	0.11


Basic shares (in thousands)		36,032		36,005			36,015			35,928



Net income used to calculate diluted earnings per share:
Net income as reported	$	13.9	$	10.7		$	47.5		$	9.1
Interest expense on 7.5% convertible senior notes (5)		3.1		—			—			—
Interest expense on 7.25% senior exchangeable notes (5)		1.7		—			—			—
Special items:
Special charges (1)		—		—			0.8			—
Revision of estimated special charges (2)		—		—			—			(0.6	)
Loss on aircraft sale leaseback transaction (3)		4.3		—			8.0			—
Unrealized (gain) loss on fuel hedging instruments, net (4)		2.7		(7.2	)		(46.3	)		(4.7	)

Net income, as adjusted for interest expense and special items	$	25.7	$	3.5		$	10.0		$	3.8


Diluted earnings per share	$	0.22	$	0.21		$	1.05		$	0.17
Interest expense on 7.5% convertible senior notes (5)		0.05		—			—			—
Interest expense on 7.25% senior exchangeable notes (5)		0.03		—			—			—
Special items:
Special charges		—		—			0.02			—
Revision of estimated special charges		—		—			—			(0.01	)
Loss on aircraft sale leaseback transaction		0.07		—			0.18			—
Unrealized (gain) loss on fuel hedging instruments, net		0.04		(0.14	)		(1.03	)		(0.09	)


Diluted earnings per share, as adjusted for interest expense and special items	$	0.41	$	0.07		$	0.22		$	0.07

Diluted shares (in thousands):
Weighted average common shares outstanding		36,032		36,005			36,015			35,928
Assumed exercise of stock options and warrants		9,425		16,015			9,082			16,142
Assumed conversion of 7.5% convertible senior notes (5)		9,358		—			—			—
Assumed conversion of 7.25% senior exchangeable notes (5)		8,096		—			—			—

Diluted shares, as adjusted (in thousands)		62,911		52,020			45,097			52,070

Notes:

(1) The 2005 six-month period includes $0.8 million of special charges related to the final Boeing 737-200 aircraft which was removed from service in January 2005.

(2) The 2004 six-month period includes a credit of $0.6 million related to the revision of the estimated costs associated with the sale and leaseback of certain aircraft.

(3) The second quarter of 2005 includes a $4.3 million loss on the sale and leaseback of one new Airbus A320 aircraft acquired during the period. The 2005 six-month period includes a total of $8.0 million loss on the sale and leaseback of two new Airbus A320 aircraft acquired during the period.

(4) The 2005 second quarter and the 2005 six-month period includes a $2.7 million unrealized loss and $46.3 million unrealized gain, respectively, and the 2004 second quarter and the 2004 six-month period includes a $7.2 million and $4.7 million unrealized gain, respectively, resulting from mark-to-market accounting for changes in the fair value of the Company’s fuel hedging instruments.

(5) This reflects the use of the “if converted” method to incorporate convertible notes into the diluted earnings per share computation. Under this method, the convertible notes are assumed to have been converted at the beginning of the accounting period, or at their date of issuance, if later. Therefore, the interest expense, net of tax, that would not have been paid if the notes had been converted is recognized as an adjustment to net income. Concurrently, the number of shares are adjusted to assume conversion of the notes to shares.

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Reconciliation of Airline Operating Cost per ASM Excluding Special Items, Fuel and Realized Gains
on Fuel Hedging Instruments, Net — Mainline only


	3 Months Ended			3 Months Ended			6 Months Ended			6 Months Ended
	June 30, 2005			June 30, 2004			June 30, 2005			June 30, 2004
				(in thousands)

Total operating expenses	$	801,305		$	667,237		$	1,473,002		$	1,300,509
Less: Express expenses		(136,048	)		(89,802	)		(246,874	)		(163,104	)

Total mainline operating expenses		665,257			577,435			1,226,128			1,137,405

Special items:
Special charges		—			—			(811	)		—
Revision of estimated special charges		—			—			—			600
Loss on aircraft sale leaseback transaction		(4,278	)		—			(8,013	)		—
Unrealized gain (loss) on fuel hedging instruments, net		(2,671	)		7,188			46,277			4,692

Operating expenses, excluding special items		658,308			584,623			1,263,581			1,142,697

Fuel expense		(191,006	)		(132,977	)		(342,869	)		(247,189	)
Realized gains on fuel hedging instruments, net		11,344			2,297			22,879			5,197

		(179,662	)		(130,680	)		(319,990	)		(241,992	)

Operating expenses, excluding special items, fuel and realized gains on fuel hedging instruments, net	$	478,646		$	453,943		$	943,591		$	900,705


	3 Months Ended			3 Months Ended			6 Months Ended			6 Months Ended
	June 30, 2005			June 30, 2004			June 30, 2005			June 30, 2004
				(in cents)

Operating cost per ASM	$	8.58		$	7.65		$	8.14		$	7.63

Special items:
Special charges		—			—			(0.01	)		—
Revision of estimated special charges		—			—			—			0.01
Loss on aircraft sale leaseback transaction		(0.06	)		—			(0.05	)		—
Unrealized gain (loss) on fuel hedging instruments, net		(0.03	)		0.09			0.31			0.03

Operating cost per ASM, excluding special items		8.49			7.74			8.39			7.67

Fuel expense		(2.47	)		(1.76	)		(2.27	)		(1.66	)
Realized gains on fuel hedging instruments, net		0.15			0.03			0.15			0.03

		(2.32	)		(1.73	)		(2.12	)		(1.63	)

Operating expenses, excluding special items, fuel and realized gains on fuel hedging instruments, net	$	6.17		$	6.01		$	6.27		$	6.04

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America West Holdings Corporation
Condensed Consolidated Balance Sheets
(in thousands of dollars)
(unaudited)


	June 30, 2005		December 31, 2004
Assets

Current assets
Cash equivalents and short-term investments	$	322,278	$	275,742
Restricted cash		—		41,264
Other current assets, net		371,728		307,971

Total current assets		694,006		624,977


Property and equipment, net		684,203		656,535

Other assets
Investments in debt securities		—		30,000
Restricted cash		91,633		72,091
Other assets		134,975		91,661

Total assets	$	1,604,817	$	1,475,264


Liabilities and Stockholders’ Equity

Current liabilities
Current maturities of long-term debt	$	119,276	$	154,658
Other liabilities		653,278		510,058

Total current liabilities		772,554		664,716


Long-term debt, less current maturities		593,184		640,190
Deferred credits and other noncurrent liabilities		154,941		133,911
Stockholders’ equity		84,138		36,447


Total liabilities and stockholders’ equity	$	1,604,817	$	1,475,264

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AMERICA WEST HOLDINGS CORP 8-K