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   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt"&gt;&lt;b&gt;5. Income Taxes&lt;/b&gt;
   &lt;/div&gt;
   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"&gt;At December&amp;#160;31, 2010, the Company had approximately $1.92&amp;#160;billion of gross net operating
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   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"&gt;The Company reported a loss before income taxes in the first quarter of each of 2011 and 2010,
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
 -Publisher FASB
 -Name Statement of Financial Accounting Standard (FAS)
 -Number 109
 -Paragraph 136, 172

Reference 3: http://www.xbrl.org/2003/role/presentationRef
 -Publisher FASB
 -Name Statement of Financial Accounting Standard (FAS)
 -Number 109
 -Paragraph 43, 44, 45, 46, 47, 48, 49

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   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt"&gt;&lt;b&gt;5. Income Taxes&lt;/b&gt;
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   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"&gt;US Airways and its wholly owned subsidiary are part of the US Airways Group consolidated
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   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"&gt;At December&amp;#160;31, 2010, US Airways had approximately $1.84&amp;#160;billion of gross net operating losses
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   allowances were $388&amp;#160;million and $62&amp;#160;million, respectively.
   &lt;/div&gt;
   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"&gt;US Airways reported a loss before income taxes in the first quarter of each of 2011 and 2010,
   and US Airways did not record a tax provision in either period.
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