UAL Reports April Results

CHICAGO, May 28, 2003 - UAL Corporation (OTCBB: UALAQ.OB), the holding company whose primary subsidiary is United Airlines, today filed its April Monthly Operating Report (MOR) with the United States Bankruptcy Court, and said that it met the third monthly requirement of its debtor-in-possession (DIP) financing.Ê As part of its DIP financing agreements, United’s lenders required the company to achieve a cumulative EBITDAR (earnings before interest, taxes, depreciation, amortization and aircraft rent) loss of no more than $849 million between December 1, 2002 and April 30, 2003.

The company reported a loss from operations of $297 million and a net loss of $375 million for April.Ê The revenue environment for the entire airline industry was very difficult during the month, due to the full impact of the war in Iraq and the fear of SARS in Asia.

UAL improved its cash position for the month and reported an increase in cash of approximately $150 million for April, ending the month with a cash balance of approximately $1.7 billion, which included $651 million in restricted cash (filing entities only). During the month of April, the company made a $64 million quarterly retroactive wage payment, including taxes and interest, to employees who are members of the International Association of Machinists and Aerospace Workers (IAM) union.Ê The company also received a $365 million tax refund from the Internal Revenue Service.Ê UAL began April with a cash balance of approximately $1.6 billion, which included $633 million in restricted cash (filing entities only).Ê Excluding the tax refund and the quarterly IAM retro payment, the company`s cash balance decreased approximately $150 million for the month.

United`s Executive Vice President and Chief Financial Officer Jake Brace said, “April marked the high point of the Iraq War and SARS impacts on revenue.Ê Our cash burn was significantly higher in April as compared with March.Ê We are pleased that our cash receipts have now returned to pre-war levels.Ê We have stayed on track with our efforts to reduce our cost structure significantly and we continue to move our business forward.Ê Early planning for the effects of the war in Iraq and our new flexibility to respond to market shifts helped us to meet our cumulative EBITDAR requirements and maintain a healthy cash position. We are confident at this point that we will also meet our EBITDAR requirements for May.”

Brace continued: “We are pleased to have recently announced the resumption in June of 162 flights and are encouraged by bookings for the summer months.Ê However, the revenue environment continues to be challenging.

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In May, the company announced the appointment of John Tague as executive vice-president-Customer, and the company plans to dedicate significant resources to re-engaging its core customer base.

Tague said, “The company has made enormous progress in restructuring its costs.Ê Looking forward, United is now turning its full attention toward revenue enhancement.Ê The company is currently finalizing aggressive and focused plans across all of its revenue disciplines so that we can fully address visible opportunities for improvement through refining and investing in our marketing and revenue management strategy.”
United`s operations continued to demonstrate strong on-time performance, as well as improvements in customer service and satisfaction.Ê In addition, United is continuing to demonstrate its commitment to investing in customers through a number of recently announced enhancements to the travel experience, including the introduction of online Web check-in (EasyCheck-in Online) for customers, the accelerated introduction of EasyCheck-in self-service kiosks, and the reconfiguration of our remaining 777 aircraft to deploy Economy Plus seating, and to increase leg room and increase seat recline in Business Class. United is also introducing JetConnect technology, so passengers can send and receive email from the plane.Ê

United operates more than 1,550 flights a day on a route network that spans the globe.Ê News releases and other information about United may be found at the company’s website atÊwww.united.com.

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