Confused, overwhelmed, embarrassed about not knowing …

July 2011 Newsletter

Designed for US Airways Employees Data through June 26, 2011

Confused, overwhelmed, embarrassed about not knowing what to do with your United Airlines 401k choices?

Welcome to EZTracker

If you use the US Airways Future Care 401k, this newsletter is for you. No more feeling overwhelmed and under-informed. EZTracker is easy, credible and successful. It's designed to help everyone from the neophyte to the expert make the best choices for their individual retirement needs. No need for expensive financial advisors who use cookie-cutter approaches to managing your money. EZTracker evaluates the funds in your 401k; you pick the EZTracker portfolio that best meets your needs.

On the last Sunday of each month we will send you an e-mail to announce the new issue of EZTracker. All you have to do is download your copy and update your 401k portfolio. It's easy. We also provide simple instructions and a FREE Help Hotline to get you started --and to keep you on track.

We believe you can--and should-- take control of your financial future because EZTracker makes it easy and no one cares about your money more than you do.

EZTracker began publishing in 2002 for employees of American Airlines. Too many employees were confused by the numerous

choices, risk-reward ratios, and investing procedures. They were simply doing nothing and as a result were losing out

on a more secure retirement. Since then EZTracker has helped thousands of your colleagues at American, Southwest

and JetBlue, as well as the pilots at United and UPS.

Getting

The EZTracker methodology works; EZTracker model portfolios have consistently outpaced the S&P since we began publishing in 2002. View our track record ().

Started and Model

How does EZTracker work?

EZTracker evaluates the choices in the US Airways Future Care 401k. Using the best performing funds, we

Portfolios, page 4

constructed three model portfolios; Conservative, Moderate and Aggressive. Each meets a different

investment style and need. You choose which portfolio fits your needs; we update you monthly.

EZTracker uses a disciplined approach to investing even in the face of market volatility. By evaluating the performance of your 401k funds and UPGRADING monthly, EZTracker follows the market leadership. EZTracker's monthly updating is, in effect, another form of diversification and a method for moving assets incrementally.

Unlike typical buy and hold approaches, the EZTracker portfolios respond to changing market and economic conditions. At times United's model portfolios might be small-cap value or large-cap growth, emerging markets or even bond funds, but the goal is to seek out the best performance.

What to Look For

? EZTracker Model Portfolios: page 4, custom designed for US Airway employees. ? Back Test results for the US Airways Future Care 401k plan: page 6 ? Ranking of United Funds: page 7

Your Free Subscription

To receive a FREE EZTracker newsletter for 2011, go to and click on the Subscribe/Renew button. Scroll down and select US Airways.

Please let others at US Airways know about EZTracker and our FREE offer. Help them and yourself to a better retirement.

Effective January 1, 2012, a one-year subscription is $69.95; two years will be $119.95. There is no obligation to subscribe.

Model Portfolios

Each month EZTracker updates the performance of ALL of the funds available in the US Air Future Care 401k plan. We use this information to construct and update three model portfolios.

EZTracker Aggressive Portfolio is always fully invested in the best performing funds.

EZTracker Moderate Portfolio is 70% allocated to the best performing funds with the highest Tracker Average; 30% is split between the Fidelity Managed Income Portfolio and the better-performing of either the Spartan US Bond Index (FBIDX) or the Fidelity Institutional Money Market (FMPXX).

EZTracker Conservative Portfolio is 40% allocated to the best performing funds with the highest Tracker Average; 60% is split between the Fidelity Managed Income Portfolio and the better-performing of either the Spartan US Bond Index (FBIDX) or the Fidelity Institutional Money Market (FMPXX).

Which Portfolio is Right for You?

Only you can decide. This will vary based on age, income, lifestyle, other investment assets and your tolerance for risk. Good risk quizzes are offered by both Vanguard () and Microsoft Money Central (). You must be comfortable with your investment strategy. If you're taking on too much risk (or not enough) for your goals, consider changing your asset mix. Decide if you're an Aggressive, Moderate or Conservative investor and stick with your strategy. Investing is a long-term proposition.

Free Help Hotline... Although we cannot give you financial advice, we can help new subscribers get

started and help current subscribers get back on track. Call 609-602-5071.

US Air 401k Plan News

US Airways' 401k Investment Committee periodically reviews the plan's options to ensure it continues to meet the needs of the participants. The goal is to offer a broad range of investment choices at a reasonable cost and that have the potential to perform well over time. The following changes are effective June 15, 2011:

Two investment options will be added: ? Fidelity? Contrafund? - Class K (Ticker: FCNKX) ? Goldman Sachs Growth Opportunities Fund Class Institutional (Ticker: GGOIX) Two investment options will be discontinued: ? Fidelity? Magellan? Fund (Ticker: FMAGX) ? Alger Mid Cap Growth Institutional Fund Class I (Ticker: ALMRX) Six current funds will be replaced with lower-cost versions of the same funds: The new share classes have lower investment management fees than the original share classes.

? Fidelity? Growth Company Fund (Ticker: FDGRX) being replaced by Fidelity? Growth Company Fund - Class K (Ticker: FGCKX) ? Fidelity? Balanced Fund (Ticker: FBALX) being replaced by Fidelity? Balanced Fund - Class K (Ticker: FBAKX) ? Fidelity? Leveraged Company Stock Fund (Ticker: FLVCX) being replaced by Fidelity? Leveraged Company Stock Fund - Class K (Ticker:

FLCKX) ? Fidelity? Low-Priced Stock Fund (Ticker: FLPSX) being replaced by Fidelity? Low-Priced Stock Fund - Class K (Ticker: FLPKX) ? RS Emerging Markets Fund Class A (Ticker: GBEMX) being replaced by RS Emerging Markets Fund Class Y (Ticker: RSENX) ? Franklin Small Cap Value Fund Class A (Ticker: FRVLX) being replaced by Franklin Small Cap Value Fund Class Advisor (Ticker: FVADX)

The monthly EZTracker data page (page 7) reflects all of these changes.

How to Use the Newsletter

The EZTracker newsletter is published and posted to our web site on the last Sunday of each month. We send you an e-mail with a link so you can access the new information. While there are many ways to use the data and information in the EZTracker Newsletter, most subscribers follow one of these styles:

1. Some subscribers select the EZTracker model portfolio which best represents their investment style and risk tolerance and then adjust their 401k holdings by following the model portfolio.

2. Some subscribers select the EZTracker model portfolio which best represents their investment style and risk tolerance and then use their own market analysis to adjust the portfolio, expanding or shortening the list of funds in the model portfolios.

3. Some subscribers use the EZTracker model portfolios for a portion of their 401k investments. These investors usually identify some current holdings to maintain as fixed portions of their retirement plans and use the EZTracker model portfolio for the balance.

4. Some subscribers use the data provided on the last page of the newsletter to construct their own portfolios.

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EZTracker Odds and Ends

? Help Line: For questions about managing your 401k or for new subscribers getting started: 609-602-5071 (Monday-Friday, 9-5 EDT). ? Holding Periods: We always consider holding periods when formulating the EZTracker model portfolios. You should not incur any penalties if

you keep track of your purchase and sell dates. ? 401k Limits for 2011: These remain unchanged from 2010. Those under 50 years of age can now contribute $16,500 to their 401ks. Those

50 and older can contribute an additional $5,500 for a total of $22,000. ? Newsletter Schedule: The EZTracker newsletter is published on the last Sunday of each month. The August issue will be published Sunday,

July 31. ? Profile Changes: Need to change your e-mail, password or any of your contact information? Log-in to the EZTracker website and click on "My

Profile." ? Privacy. We never share any subscriber information. We guarantee your privacy is protected. ? Questions, Comments, Problems: Let us know if you have any questions or suggestions. We're just a click away at

contact@ or call (609) 513-8623. For help or questions about rebalancing or managing your portfolio, call 609-602-5071.

US Airways Stock and News

LCC stock closed at $8.69 on Friday, June 24. While down 13% YTD, the stock is up 1% from a year ago.

Charles Schwab gives the stock a "B" rating and investor guidance of "Outperform". It gives the stock an "A" for Fundamentals; "B" for Valuation; "C" for Momentum; and "D" for Risk.

Morningstar assigns its mid-grade three- star rating and a "D" for growth.

Other analysts' ratings: Market Edge: Neutral Ford Equity Research: Hold The Street: Hold Standard & Poor's: 4 Stars

14

LCC Stock

12

2009-2011

10

8 7.73 6

4

2

2.53

0

Articles of Interest About US Airways:

? Aircraft financing. $ ? Tentative TWU agreement. ? Record May load factor. ? New revenue drivers.

7.33 3.06

11.79 8.69

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Model Portfolios ? June 26, 2011

EZTracker provides three model portfolios, Aggressive, Moderate and Conservative. Each is designed for different investment needs and styles as well as level of risk.

To get started you need to take two steps: Update Current Investments and Update Future Investment Options.

STEP 1: Update Current Investments (funds you hold right now)

1. Log on to the Fidelity Investments site and sign-in to your account. The next page you will see is "Welcome to Net Benefits"

2. Click on the "401k Saving Plan". This will bring up the "Summary" page and a left hand navigation bar which is broken into two parts. Below "ACT," click on "Change Investments." This is where you will make changes to your 401k.

3. If you are a new subscriber with EZTracker, you will use the Rebalance choice to match the portfolio you choose from the chart below.

4. If you are already a subscriber with EZTracker, you will use the Exchange choice to move money from one fund to another fund. NOTE: The "Exchange" choice simply exchanges the fund you are selling with the new fund. Do not use the "Rebalance" option. "Rebalance" sells all of your holdings and then repurchases them in the percentages you specify. Using "Rebalance" can trigger holding period penalties. "Rebalance" establishes new start dates for holding periods because it treats these purchases as new buys. This is true even if you are repurchasing the same fund. Use the "Rebalance" option only if you have not made any changes in your 401k account during the past 90 days. This option will completely rebalance your entire portfolio and start new holding periods for the funds in your 401k. (In the future, we may suggest a "Rebalance" but only when there have been no portfolio changes for an extended period. When this situation occurs we will make it clear in the monthly newsletter.)

5. After you complete the necessary "Exchange" or "Rebalance", print a copy of your transactions, including your confirmation number. 6. Keep track of your buy and sell dates on the Buy and Sell Tracking form provided on the next page.

For step-by-step directions about updating your portfolio, see page 8.

EZTracker Model Portfolios

Aggressive Moderate Conservative

Buy*

Earliest Sell

Date*

Fideilty MIP II CL 3

0%

15%

30%

6/27/11

Fidelity Institutional MM (FMPXX)

0%

15%

30%

6/27/11

Hartford Small Company Y (HSCYX)

25%

18%

10%

6/27/11 7/28/11

TRP Real Estate (TRREX)

25%

18%

10%

6/27/11 9/28/11

Fidelity Growth Company (FGCKX)

25%

17%

10%

6/27/11 7/28/11

Columbia MidCap Value (NMPAX)

25%

17%

10%

6/27/11 7/28/11

Your individual percentages may vary somewhat from those indicated above.

Restrictions 1% > 90 days

*Buy dates are the dates of initial purchase. In some cases incremental purchases may have been made. Sell date is the earliest date you can sell and comply with the minimum holding periods. Your buy and sell dates may be different. Each subscriber should keep track of his or her own specific transaction dates.

Funds in the 401k are subject to a frequent trading policy. To avoid penalties and "Frequent Trading" notices from Fidelity, be sure to comply with all holding periods. While many plans have longer holding periods (indicated on the fund data on the last page of the newsletter), all funds in the 401k plan have a minimum hold of 30 days. We take this policy into consideration when constructing the model portfolios

STEP 2: U. pdate Future Investment Elections (where you want your payroll deductions to go)

If you are adding cash to your 401k through payroll deductions, set your future contributions identical to your Current Investment in the above EZTracker Model Portfolio chart.

1. Click on "Change Investments" and select "Change or View Future Investment Elections". Your Current Investment Elections will appear in the middle of the page.

2. Below this is "Change Your Investment Elections" and on the right side of the screen is "I'll manage my own." Click on "Select Funds" and choose the percentages that match those in the portfolio you have selected from the above choices (Aggressive, Moderate, Conservative).

3. Complete the procedure and get a confirmation.

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Buy and Sell Tracking Form

Fund Name

Buy Date*

Hartford Small Company Y (HSCYX) TRP Real Estate (TRREX) Fidelity Growth Company (FGCKX) Columbia MidCap Value (NMPAX)

6/27/11 6/27/11 6/27/11 6/27/11

Earliest Your Buy Your Sell

Sell Date

Date

Date

7/28/11 9/28/11 7/28/11 7/28/11

Restriction

1% > 90 days

Each subscriber should keep track of his or her own specific transaction dates.

*The chart above uses the Monday following newsletter publication for purchase and sale dates ? yours may be different. **Selling this fund prior to the earliest sell date will incur a financial penalty.

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