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Ted Celebrates Its First Birthday

United today announced that to
celebrate the successful first year of Ted, its low-fare operation
launched on Feb. 12, 2004, Mileage Plus customers who’ve flown Ted in its
first year will receive a gift of their own: a 15% discount coupon for
their next Ted flight.* In its first year, Ted carried more than seven million passengers—
reaching a load factor for 2004 of greater than 80%. Daily flights have
increased as well, beginning with 20 flights per day last February to 208
each day now, initially serving four cities and now flying between 15—
carrying more than 27,000 customers on a daily basis to destinations
across the system.

“We are very pleased with Ted’s performance in its first year of
operation, as we have seen strong year-over-year margin improvement since
its inception,” says Sean Donohue, vice president-Ted and United Express.
“The combination of simple and easy-to-understand low fares, a good
quality experience, and the benefits of Mileage Plus(R) and Economy
Plus(R) seating has proven a winning formula with customers in year one.”

With Ted, more passengers are flying United than in the year before,
illustrated by Ted’s achievement of strong 2004 market share gains. Not
only has flying by United’s elite customers increased, but Ted has also
attracted new fliers to United. Ted is consistently achieving high
customer satisfaction ratings, and 77% of Ted’s customers say they would
recommend Ted to a friend.

The upcoming expansion of Ted service to Chicago Midway Airport, beginning
April 3, 2005, gives Ted’s customers the ability to connect to
destinations worldwide through United’s Denver and Washington Dulles hubs.
Midway service will include three daily flights between Midway and Denver,
and two daily flights between Midway and Washington Dulles.

In addition, Ted’s service to popular destinations in Mexico has continued
to return strong results, and its daily service to Puerto Vallarta from
Denver and San Francisco and to Los Cabos from San Francisco is thriving.
Service on these routes began in December.


Ted’s birthday celebration begins in Denver today and continues through
the weekend at stations across the Ted system with a variety of
activities, including: birthday cards (at select airports) containing
discount e- certificates on future qualifying Ted flights; “random acts of
Ted kindness” throughout the Denver area; and a birthday party at Denver
International Airport, the home of Ted’s first flight. Happy birthday,
Ted. Low fares never get old.