There was very encouraging news in the company's third-quarter financial
results released this week, as well as our monthly operating report for September.

We achieved significant improvement in our unit costs and unit revenues. In fact, the company reported an operating profit of $19 million dollars, an improvement of $665 million dollars over last year. And our unit revenue -- which is our operating revenue, divided by available seat miles -- increased by 12 percent. That increase was among the best in the industry. At the same time, we generated a positive cash flow of about $3 million dollars per day.

This doesn't mean our work is done. United is still reporting an overall loss for the quarter of $37 million, excluding mostly non-cash special charges and reorganization expenses. However, we have come a very long way in one year, and these results clearly show that we're doing the right things to put United back on track.

These results also reflect the excellent operational performance by employees, as well as our solid progress on reducing costs and re-engaging customers through marketing and sales campaigns.

The monthly operating report for September, which United files with the
bankruptcy court, also brought welcome news. For the eighth straight month, we met the requirements of our debtor-in-possession or DIP financing agreements.
The company expects to do the same in October. Meeting our DIP requirements is so important because it allows the company continuing access to the funds we
need to operate through the restructuring.

One of the marketing initiatives we hope will contribute to our continued
financial progress began today. We are offering many of our North America
customers more meal choices with the introduction of an exciting Buy On Board product to more than 200 daily Chicago and Denver flights. For the next 90 days we'll evaluate customer reaction to the opportunity to purchase meals inflight from Hard Rock Cafe, Bennigan's, TGI Friday's and Au Bon Pain restaurants. If the response is favorable, we may offer this product in additional North America
markets.

Buy On Board affords customers in United Economy on fights of 3.5 to 5 hours in
length a choice between a complimentary snack or to purchase a meal. On flights of 2.5 to 3.5 hours where we currently do not offer meal service, customers can purchase various a la carte items. We'll continue to offer complimentary meals to our United First and United Business customers.

All the details about Buy On Board are available on SkyNet on the Onboard home page, and there are informational displays at our domiciles

Denver-based Flight Attendant Debi Katzer, who worked earlier test flights, offers her comments about Buy On Board in the November HEMISPHERES. In the magazine's "United Voices" article, Katzer notes that customers prefer having a choice of food and most of those who bought a meal said they really liked it. By the way, I've sampled some of the items we're offering, and I was very impressed with the quality.

On another topic, I'm sure you've all been following the news reports about
the California wildfires. In addition to impacting our operations, this
tragedy has taken a personal toll on employees who live in the affected areas.
Our thoughts are with those who have had to evacuate their homes or have lost
them altogether to the raging fires. I want to thank flight attendants for
coping with fire-related flight delays and cancellations. I also want to
acknowledge Onboard employees behind the scenes in Los Angeles Crew Scheduling and at the LAX domicile for assisting their front-line colleagues.

I had intended to talk about our Onboard Service business objectives this
week, following up my previous messages about our new mission statement and
fundamental behaviors. However, with all of this week's news, I'll save that for
my next Update. Thanks to all of you for your efforts this past week.

For those of you whose travel plans include door-to-door visits with your little witches and goblins, travel safely and have a great weekend.