UAL Reports Strong October Results

PRNewswire-FirstCall CHICAGO Nov. 20 :

UAL Corporation (BULLETIN BOARD: UALAQ) , the holding company whose
primary subsidiary is United Airlines, today filed its October Monthly
Operating Report (MOR) with the United States Bankruptcy Court. The
Company reported a net income for October of $25 million, excluding
reorganization expenses of $149 million. The majority of reorganization
expenses were non-cash items resulting from the rejection of aircraft as
the company aligns its fleet to the market. Operating profit for the month
was $60 million. This is an improvement of about $300 million compared to
October one year ago. Positive cash flow during the month was $7 million
per day, excluding a quarterly retroactive wage payment to International
Association of Machinists members of $63 million. UAL met the requirements
of its debtor-in-possession (DIP) financing for the ninth straight month.

“What these results point to is that United`s restructuring has
established a foundation for success—it is back in the game,
competing,” said Glenn F. Tilton, chairman, president and chief executive
officer. “We still have work to do, but United`s steady progress shows
that we are creating an airline that will be profitable and sustainable
for the long term.”

“Month after month, United continues to generate solid financial results,”
said Jake Brace, United`s executive vice president and chief financial
officer. “Cash flow remains strong, and we ended the month with a cash
balance of $2.5 billion. UAL`s systemwide passenger unit revenue was up 9%
year-over-year -_ well ahead of the industry average. We met the
requirements of our DIP covenants and expect to meet them for November as
well.”
UAL generated positive cash flow of about $206 million, excluding a
quarterly retroactive wage payment to International Association of
Machinists members of $63 million. UAL ended October with a cash balance
of about $2.5 billion, which included $650 million in restricted cash
(filing entities only). 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
$46 million between December 1, 2002 and October 31, 2003.

“United employees once again delivered strong operational performance in
spite of the challenges presented by the wildfires in California and the
increase in load factor over last year,” said Pete McDonald, executive
vice president _ Operations. “Systemwide, 77 percent of United flights
departed exactly on time. On-time arrivals within 14 minutes was 86.2
percent.”
Separately, in response to a New York Times article from November 20,
2003, regarding pensions, Brace stated, “Some people are trying to confuse
our situation. The facts are that we can fund our pension obligations on
the standard, non-accelerated timetable; we intend to continue to fund our
pension obligations; and we do not want to shift this burden to the
Pension Benefit Guaranty Corporation (PBGC) and the American taxpayer.

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“The only issue we have is the significantly accelerated pension funding
schedule currently mandated. United, along with many other companies,
supports the efforts in Congress to modify this accelerated timeline and
smooth out pension contributions in the short term. This would enable
companies to protect the pension benefits of millions of American workers
and retirees for the future. We are emphatically not seeking government
aid or asking the government to take over our obligations.”

United and United Express 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 http://www.united.com/.

Safe Harbor Statement. Certain information contained in this press release
should be considered “forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995. These statements
reflect UAL Corporation`s current expectations and beliefs with respect to
certain current and future events and financial performance. Such
forward-looking statements are and will be, as the case may be, subject to
many risks and uncertainties relating to the operations and business
environments of UAL Corporation and its subsidiaries (collectively, the
“company”) that may cause the actual results of the company to differ
materially from any future results expressed or implied in such
forward-looking statements. Such factors include, but are not limited to,
the following: the company`s ability to continue as a going concern; the
company`s ability to operate pursuant to the terms of its debtor-
in-possession facility; the company`s ability to obtain court approval
with respect to motions in the Chapter 11 proceeding prosecuted by it from
time to time; the company`s ability to develop, prosecute, confirm and
consummate one or more plans of reorganization with respect to the Chapter
11 process; risks associated with third parties seeking and obtaining
court approval to terminate or shorten the exclusive period for the
company to propose and confirm one or more plans of reorganization, for
the appointment of a Chapter 11 trustee or to convert the cases to Chapter
7 cases; the potential adverse impact of the Chapter 11 cases on the
company`s liquidity or results of operations; the cost and availability of
financing; the company`s ability to execute its business plan; the
company`s ability to attract, motivate and/or retain key employees; the
company`s ability to attract and retain customers; demand for
transportation in the markets in which the company operates; general
economic conditions; the effects of any hostilities or act of war or any
terrorist attack; the ability of other air carriers with whom the company
has alliances or partnerships to provide the services contemplated by the
respective arrangements with such carriers; the cost and availability of
aircraft insurance; the cost of aviation fuel; the cost associated with
security measures and practices; competitive pressures on pricing
(particularly from lower-cost competitors); government legislation and
regulation; and other risks and uncertainties set forth from time to time
in UAL Corporation`s reports to the United States Securities and Exchange
Commission. Consequently, the forward-looking statements should not be
regarded as representations or warranties by the company that such matters
will be realized. The company disclaims any intent or obligation to update
or alter any of the forward-looking statements, whether in response to new
information, unforeseen events, changed circumstances or otherwise.
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