UAL Corporation, the holding company of United Airlines, filed its November Monthly Operating Report with the United States Bankruptcy Court. The company reported operating earnings of $9 million for November 2005 (filing entities only), an improvement of $197 million over the same period last year, despite higher fuel prices resulting in $124 million increase in fuel costs year over year for mainline and United Express operations.

In November 2004, the company reported an operating loss of $188 million. For November 2005, the company reported a net loss of $187 million, including $159 million of largely non-cash reorganization expenses driven by aircraft-related transactions.

Excluding reorganization expenses, the company reported a net loss of $28 million.

As previously disclosed, the company will continue to record large non- cash reorganization items as it moves towards exit.

It is common for the results of operations of companies progressing through Chapter 11 to be impacted by non-cash charges related to their reorganization, especially as restructuring work nears completion.

Charges based on the claims of our creditors are recorded at the amount expected to be allowed by the court.

However, as shown in our Plan of Reorganization, these claims are expected to be settled at exit for a minor fraction of the amount of the charges recorded.

UAL consolidated mainline unit costs (CASM) in November decreased 1 percent over the same month last year despite 3 percent lower capacity and 39 percent higher fuel prices.

Excluding fuel, mainline CASM in November decreased 15 percent year-over-year.

Mainline passenger unit revenue (PRASM) in November increased 15 percent over the same period a year ago.

UAL ended November with a cash balance of $3 billion, which included $959 million in restricted cash (filing entities only).

The cash balance increased by $310 million in November. UAL met the requirements of its DIP financing for the month of November.

In the most recent data available from the U.S. Department of Transportation (for October 2005), United was ranked first in on-time arrivals, and had the fewest cancellations and mishandled bags among the seven major carriers.

“Building upon the foundation of our successful restructuring, the United team is delivering new, innovative travel products, while providing consistently improved operational performance. These solid results are evidence of real progress in our work to make United competitive and resilient,” said Glenn Tilton, United’s Chairman, CEO and President.

“The numbers tell the story. Year to date in 2005, the company’s operating earnings improved by over $450 million, despite fuel costs that are $1.3 billion higher than last year. When United exits bankruptcy in February 2006, we will be ready to compete aggressively with the best carriers in a way that is distinctly United,” said Jake Brace, United’s Chief Financial Officer.
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