UAL Reports January Results

UAL Corporation, the holding company whose
primary subsidiary is United Airlines, today filed its January Monthly
Operating Report (MOR) with the United States Bankruptcy Court. The
company reported a loss from operations of $191 million, which represents
an improvement of approximately $140 million over January 2003. Mainline
passenger unit revenue improved 8% year-over-year, well ahead of the
industry average. Mainline unit costs for January, excluding special
charges and fuel, improved 14% year-over-year. The company reported a net
loss of $252 million, including $26 million in reorganization expenses.
The majority of reorganization expenses were non- cash items resulting
from the rejection of aircraft as the company aligns its fleet with the
market. UAL met the requirements of its debtor-in-possession (DIP)
financing for the twelfth straight month. “United is continuing to move steadily ahead with its reorganization
efforts,” said Jake Brace, United’s executive vice president and chief
financial officer. “Our financial results show progress compared to
January a year ago, and United continued to outpace our competitors in
passenger unit revenue improvement, despite the seasonally weak demand
across the industry, which we expect to continue in February as well.”

UAL ended January with a cash balance of about $2.2 billion, which
included $650 million in restricted cash (filing entities only), a
decrease of $131 million, that reflects a quarterly retroactive wage
payment to International Association of Machinists members of $63 million.
As part of its DIP financing agreements, UAL’s lenders required the
company to achieve a cumulative EBITDAR (earnings before interest, taxes,
depreciation, amortization and aircraft rent) of $901 million between
February 1, 2003 and January 31, 2004.

United, United Express and Ted operate more than 3,400 flights a day on a
route network that spans the globe. News releases and other information
about United may be found at the company’s website at .