UAL Reports July Results

UAL Corporation, the holding company whose primary subsidiary is United
Airlines, today filed its July Monthly Operating Report (MOR) with the
United States Bankruptcy Court. The company reported earnings from
operations of $51 million for July 2004. Mainline passenger unit revenue
improved 1% year-over-year. Unit costs were flat over last year. Excluding
fuel, unit costs improved 6% year-over-year. The company reported net
earnings of $6 million, including $14 million in reorganization expenses.
UAL met the requirements of its debtor-in-possession (DIP) financing.
“July is normally one of our most profitable months, and the fact that we
were only able to deliver a modest net profit underscores the ongoing
challenge of record-high fuel prices exacerbated by a weak revenue
environment,” said Jake Brace, executive vice president and chief
financial officer. “The great work of our employees and the ongoing
restructuring efforts helped us narrowly clear the fuel hurdle to record a
small profit. But, we have much more work to do to make United a
sustainable, competitive airline moving forward.”

UAL ended July with a cash balance of about $2.1 billion, which included
$818 million in restricted cash (filing entities only). The cash balance
decreased approximately $153 million during the month of July, driven by a
quarterly retroactive wage payment to International Association of
Machinists members of $63 million, a final payment of $60 million to Bank
One in connection with its debtor-in-possession financing and a quarterly
Success Sharing reward to employees of $26 million.

United continued to deliver strong operational results, with an on-time
:14 departure performance of 77.6% and a July load factor of 84.8%.
Employees also exceeded the company’s goals for July for customer
satisfaction, as measured by definite intent to repurchase.
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