New York, November 13, 2012 -- Moody's Investors Service raised its debt ratings of U.S. Airways Group, Inc. ("US Airways"): Corporate Family and Probability of Default to B3 from Caa1, Senior Secured First Lien Term Loan due 2014 to B2 from B3, and senior unsecured to Caa2 from Caa3. Moody's raised its ratings by one notch on certain of the company's Enhanced Equipment Trust Certificates ("EETCs") issued by US Airway's subsidiaries, U.S. Airways, Inc. or U.S. Airways, LLC (formerly America West Airlines, LLC) and affirmed the SGL-3 Speculative Grade Liquidity rating. The outlook is stable.

RATING RATIONALE

The upgrade of the ratings anticipates that US Airways will sustain the improved operating performance of recent quarters that has led to a higher cash balance and stronger credit metrics. Moody's believes that the company's traffic performance and airline operating metrics, which have been competitive with those of its larger and or higher rated peers are likely to remain so in upcoming periods. Leading market shares in its hubs, albeit in smaller U.S. cities, helps drive favorable operating results over the course of the cycle. Moody's expects US Airways -- and the industry -- to continue a disciplined approach to capacity, including further reductions in the event weaker economic growth leads to slowing demand for air travel, to help offset pressure on yields and profit margins.

The choice to forego fuel hedging has not been an impediment to profitable operations, particularly as the average spot price of jet fuel has been about $3.00 per gallon since 2010. The upgrade of the ratings anticipates that a sustained sharp increase in the cost of oil, and thus jet fuel, is not likely over at least the next 12 to 24 months. Moody's Oil and Gas team forecasts the average barrel price of Brent oil to fall below $100 in 2013. This compares to the actual average of about $110 so far in 2012. US Airways has achieved good profitability in the past 24 months notwithstanding a lack of fuel hedges.

The upgrades occur while US Airways and AMR Corporation ("American", not rated) have indicated that they are in discussions about a potential combination. Moody's believes that a transaction with American would enhance US Airways network and offer important opportunities for cost and revenue synergies. Such benefits would be balanced against the integration risks and any incremental financial risk that could arise from funding such a merger. But, Moody's believes that even in light of the potential for a transaction to emerge between US Airways and American, the B3 CFR rating is more reflective of the company's current risk profile.

The B3 Corporate Family rating reflects Moody's belief that the company can sustain credit metrics at levels supportive of the B3 rating category over the intermediate term, even as economic headwinds persist. US Airways' network, anchored by hubs in Charlotte, Philadelphia and Phoenix and its focus city of Washington, D.C., is mainly a U.S. domestic network that is smaller than those of its larger legacy airline peers. However, Moody's expects US Airways to manage its capacity with a focus on earning acceptable returns on capital, which will help it produce competitive airline operating and financial metrics. The B3 Corporate Family and SGL-3 Speculative Grade Liquidity ratings consider the company's adequate liquidity with cash balances as a percent of revenue having improved and becoming more comparable with industry peers.

The upgrade of the Corporate Family rating is the main driver of the selected upgrades on the EETC ratings. The A or B tranches that were upgraded primarily belong to the company's "modern" EETCs; those transactions issued after 2007 that benefit from cross-default and cross-collateralization of the underlying equipment notes. Moody's upgraded the A-tranche ratings of the modern EETCs by one notch to Ba1, leveling the ratings on these tranches with the existing Ba1 ratings on the A-tranches of the company's 1998-1 and 1999-1 EETCs. The collateral in the modern EETCs represent the younger, larger and more modern aircraft in US Airways fleet and, we believe have a higher probability of affirmation under a US Airways default scenario. However, the modern EETCs have higher loans-to-value than that of the 1998-1 and 1999-1, "legacy" EETCs whose equipment notes indentures lack cross-default or cross-collateralization provisions. The risk of the smaller collateral cushion on the A-tranches of the modern EETCs relative to that in the 1998 and 1999 transactions is balanced by their more attractive collateral and the more favorable terms of the equipment notes, resulting in the leveling of the ratings at Ba1. The rating on the A-tranche of 2001-1 is Ba2; the lack of cross-default or cross-collateralization but similar loans-to-value to the more recent EETCs are the drivers of this one notch rating differential. The Ba3 ratings on the B-tranches of 1998-1 and 1999-1 are one to three notches higher than the B-tranche ratings on the remainder of the company's EETCs. Lower loans-to-value are the driver of these relative ratings.

The stable outlook reflects Moody's anticipation of relatively stable demand and fuel prices in upcoming quarters, which should allow the company to sustain breakeven to modestly positive free cash flow generation, notwithstanding higher capital expenditures with increasing deliveries of Airbus A321 aircraft. There is little upwards pressure on the ratings above the B3 level at this time, particularly given the event risk associated with a potential business combination. However, a positive rating action could follow if the company was to further strengthen its metrics profile, even while significantly increasing its size. Sustaining Debt to EBITDA below 5.5 times, Funds from operations + interest to interest above 3.0 times and positive free cash flow generation could support an upgrade. A negative rating action could follow if unrestricted cash declines below $1.8 billion. The inability to control non-fuel operating costs or to sustain competitive yields, either of which would challenge the company to maintain its operations over the long-term could also lead to a downgrade. Debt to EBITDA that surpasses 7.0 times, FFO + Interest to Interest that approaches 2.0 times or sustained negative free cash flow generation could pressure the ratings.

Issuer: US Airways Group, Inc.,

..Upgrades:

....Probability of Default Rating, Upgraded to B3 from Caa1

....Corporate Family Rating, Upgraded to B3 from Caa1

....Senior Secured Bank Credit Facility, Upgraded to B2, LGD3, 35% from B3, LGD3, 37%

Issuer: US Airways, Inc., ..Upgrades: ....Senior Secured Enhanced Equipment Trust Certificates

......1998-1 C, Upgraded to B3 from Caa1

......1999-1 C, Upgraded to B3 from Caa1

......2000-3 C, Upgraded to B3 from Caa1

......2001-1 G, Upgraded to Ba2 from Ba3

......2001-1 C, Upgraded to B2 from B3

......2010-1A, Upgraded to Ba1 from Ba2

......2010-1B, Upgraded to B1 from B2

......2011-1A, Upgraded to Ba1 from Ba2

......2011-1B, Upgraded to B1 from B2

......2012-1A, Upgraded to Ba1 from Ba2

......2012-1B, Upgraded to B1 from B2

..Affirmations:

....Senior Secured Enhanced Equipment Trust Certificates

......America West Airlines, Inc.

........1998-1 A, at Ba3 ........1998-1 B, at B3 ........1999-1 G1, at B1 ........2000-1 G1, at B1 ........2001-1 G1, at B1 ......US Airways, Inc. ........1998-1 A, at Ba1 ........1998-1 B, at Ba3 ........1999-1 A, at Ba1 ........1999-1 A2, at Ba1 ........1999-1 B, at Ba3 ........2000-2 G, at Ba3 ........2000-3 G, at Ba3 ........2010-1 C, at B3 ........2011-1 C, at B3 ........2012-1 C, at B3 Issuer: Hillsborough County Aviation Authority, FL ,

..Upgrades:

....Senior Secured Revenue Bonds, Upgraded to Caa2, LGD5, 85% from Caa3, LGD5, 88%

Issuer: Indianapolis Airport Authority, IN ,

..Upgrades:

....Revenue Bonds , Upgraded to Caa2, LGD5, 85% from Caa3, LGD5, 88%

Issuer: Pennsylvania Economic Dev. Fin. Auth. ,

..Upgrades:

....Senior Unsecured Revenue Bonds, Upgraded to a range of Caa2, LGD5, 85 % from a range of Caa3, LGD5, 88 %

Issuer: Phoenix Industrial Development Authority, AZ ,

..Upgrades:

....Senior Unsecured Revenue Bonds, Upgraded to a range of Caa2, LGD5, 85 % from a range of Caa3, LGD5, 88 %

The principal methodology used in rating US Airways was the Global Passenger Airlines Industry Methodology published in May 2012 and Enhanced Equipment Trust And Equipment Trust Certificates published in December 2010. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Please see the Credit Policy page on www.moodys.com for a copy of these methodologies.

US Airways, along with US Airways Shuttle and US Airways Express, operates nearly 3,200 flights per day and serves more than 200 communities in the U.S., Canada, Mexico, Europe, the Middle East, the Caribbean, Central and South America.

REGULATORY DISCLOSURES

The Global Scale Credit Ratings on this press release that are issued by one of Moody's affiliates outside the EU are endorsed by Moody's Investors Service Ltd., One Canada Square, Canary Wharf, London E 14 5FA, UK, in accordance with Art.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies. Further information on the EU endorsement status and on the Moody's office that has issued a particular Credit Rating is available on www.moodys.com.

For ratings issued on a program, series or category/class of debt, this announcement provides relevant regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides relevant regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides relevant regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

Information sources used to prepare the rating are the following : parties involved in the ratings, parties not involved in the ratings, public information, and confidential and proprietary Moody's Investors Service information.

Moody's considers the quality of information available on the rated entity, obligation or credit satisfactory for the purposes of issuing a rating.

Moody's adopts all necessary measures so that the information it uses in assigning a rating is of sufficient quality and from sources Moody's considers to be reliable including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot in every instance independently verify or validate information received in the rating process.

Please see the ratings disclosure page on www.moodys.com for general disclosure on potential conflicts of interests.

Please see the ratings disclosure page on www.moodys.com for information on (A) MCO's major shareholders (above 5%) and for (B) further information regarding certain affiliations that may exist between directors of MCO and rated entities as well as (C) the names of entities that hold ratings from MIS that have also publicly reported to the SEC an ownership interest in MCO of more than 5%. A member of the board of directors of this rated entity may also be a member of the board of directors of a shareholder of Moody's Corporation; however, Moody's has not independently verified this matter.

Please see Moody's Rating Symbols and Definitions on the Rating Process page on www.moodys.com for further information on the meaning of each rating category and the definition of default and recovery.

Please see ratings tab on the issuer/entity page on www.moodys.com for the last rating action and the rating history.

The date on which some ratings were first released goes back to a time before Moody's ratings were fully digitized and accurate data may not be available. Consequently, Moody's provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further information.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Jonathan Root VP - Senior Credit Officer Corporate Finance Group Moody'sInvestors Service, Inc.250 Greenwich StreetNew York, NY 10007 U.S.A. JOURNALISTS: 212-553-0376 SUBSCRIBERS: 212-553-1653Michael J. Mulvaney MD - Corporate Finance Corporate Finance Group JOURNALISTS: 212-553-0376 SUBSCRIBERS: 212-553-1653 Releasing Office: Moody's Investors Service, Inc.250 Greenwich StreetNew York, NY 10007 U.S.A. JOURNALISTS: 212-553-0376 SUBSCRIBERS: 212-553-1653(C) 2012 Moody's Investors Service, Inc. and/or its licensors and affiliates (collectively, "MOODY'S"). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. ("MIS") AND ITS AFFILIATES ARE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND CREDIT RATINGS AND RESEARCH PUBLICATIONS PUBLISHED BY MOODY'S ("MOODY'S PUBLICATIONS") MAY INCLUDE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY'S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY'S OPINIONS INCLUDED IN MOODY'S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. CREDIT RATINGS AND MOODY'S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY'S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY'S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY'S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY'S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED,DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT.

All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided "AS IS" without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY'S is not an auditor and cannot in every instance independently verify or validate information received in the rating process. Under no circumstances shall MOODY'S have any liability to any person or entity for (a) any loss or damage in whole or in part caused by, resulting from, or relating to, any error negligent or otherwise or other circumstance or contingency within or outside the control of MOODY'S or any of its directors, officers, employees or agents in connection with the procurement, collection, compilation, analysis, interpretation, communication, publication or delivery of any such information, or (b) any direct, indirect, special, consequential, compensatory or incidental damages whatsoever (including without limitation, lost profits), even if MOODY'S is advised in advance of the possibility of such damages, resulting from the use of or inability to use, any such information. The ratings, financial reporting analysis, projections, and other observations, if any, constituting part of the information contained herein are, and must be construed solely as, statements of opinion and not statements of fact or recommendations to purchase, sell or hold any securities. Each user of the information contained herein must make its own study and evaluation of each security it may consider purchasing, holding or selling.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER.

MIS, a wholly-owned credit rating agency subsidiary of Moody's Corporation ("MCO"), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MIS have, prior to assignment of any rating, agreed to pay to MIS for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS's ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading "Shareholder Relations -- Corporate Governance -- Director and Shareholder Affiliation Policy."

Any publication into Australia of this document is by MOODY'S affiliate, Moody's Investors Service Pty Limited ABN 61 003 399 657, which holds Australian Financial Services License no. 336969. This document is intended to be provided only to "wholesale clients" within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY'S that you are, or are accessing the document as a representative of, a "wholesale client" and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to "retail clients" within the meaning of section 761G of the Corporations Act 2001.

Notwithstanding the foregoing, credit ratings assigned on and after October 1, 2010 by Moody's Japan K.K. ("MJKK") are MJKK's current opinions of the relative future credit risk of entities, credit commitments, or debt or debt-like securities. In such a case, "MIS" in the foregoing statements shall be deemed to be replaced with "MJKK". MJKK is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly owned by Moody's Overseas Holdings Inc., a wholly-owned subsidiary of MCO.

This credit rating is an opinion as to the creditworthiness or a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be dangerous for retail investors to make any investment decision based on this credit rating. If in doubt you should contact your financial or other professional adviser.