Hello, this is Glenn and it's Friday morning, August 1.

This morning, just a few moments ago, we announced our financial results for the month of June and the full quarter. I'd like to take the opportunity of the call to give you the top line and you can read the details of our results in NewsReal.

First, we reported a positive operating cash flow of almost 2 million dollars per day in the second quarter. Our cash position improved significantly to 2.3 billion dollars. Our operating expenses for the quarter were down 17 percent from the same quarter last year. And our unit costs -- which are operating expenses per available seat mile -- improved significantly, decreasing 6 percent year-over-year, excluding special charges. Salaries and related costs were down 543 million -- or 30 percent -- for the quarter. We met our debtor-in-possession lenders' requirements for the fifth straight month.

And significantly, our on-time performance for the quarter was the best in United's history and we had the second-fewest passenger complaints among the six major network carriers for January through May.

Finally, we made significant progress in enhancing our value and our service to our customers, which helped us steadily improve our revenues over the course of the quarter.

It's important to understand that United made significant and substantial progress as the quarter progressed. The beginning of the quarter was very difficult and very challenging for United, as it was for the entire industry, but we saw a particularly positive trend as we moved through this important quarter for the company.

For example, throughout the quarter, United was catching up to the industry majors in unit revenue. But, importantly, by the end of the quarter, we narrowed that gap significantly. We wound up with a 4 percent improvement in our domestic passenger unit revenue for June over the same month last year.

And, our unit cost improvement excluding special charges, was among the best in the business.

As a result of this revenue and unit-cost improvement, we had a 4 million dollar positive swing in our operating cash flow, from a negative 2 million dollars a day in the first quarter of this year, to almost 2 million dollars per day positive in this quarter -- and that does not include government reimbursement for security costs and a tax refund.

With all of that in mind, as we together look back at the first half of this year, I want to take this moment to recognize that we are in a very different place today than we were at the beginning of 2003.

We are seeing the cumulative effects of our continuing hard work, which in an improving external environment is producing important results.
When I talk to people in my visits around the country, I remind them of what this company has achieved -- and I want to share with you that they are all very impressed, if not amazed, by how far we have come in such a short period of time.

As we continue to improve, we also can expect to be able to compete more effectively. We already have fully restored our trans-Atlantic schedule; by September 3, our Pacific schedule should be back to 100 percent restoration; and we are in the process of adding domestic flights to accommodate increasing demand.

Having said that, while we have every right to feel good about our achievements, keep in mind that we are still in Chapter 11 and we have much to do before we exit. We have to continue to fix the fundamentals and as we do, we'll have earned the right to compete on a broader basis.

To do this we are going to have to do more than simply maintain our current improved position. We have to be even more aggressive and clearly focused on being better than our competitors in every way possible and measurable -- from enhancements to the airport and inflight experience for our customers to maintaining our cost and our capital discipline and intensifying our marketing and sales efforts.

We are going to have to continue to make very tough decisions to create a strong foundation for the company for future competitiveness and future growth.

As always, I'm going to be talking with you again soon. Until then, remain focused on all the things that are helping this airline operate smoothly every day, provide customers with increasingly better service and continue our progress on improving our profitability.

Stay united, because it's the teamwork and the discipline together that are moving us forward.