Yesterday we announced our third-quarter financial results and the numbers demonstrate both the progress we have made operationally, and the difficulties our entire industry is facing. We reported an operating loss of 80 million dollars, which compares with a 19-million dollar operating profit in the third quarter of 2003. Our net loss for the quarter was 274 million dollars. Excluding special and reorganization charges, the net loss for the third quarter of 2004 was 177 million dollars.

Also this week, United reported its monthly operating results for September. We again met our debtor-in-possession or DIP financing requirement, but we posted a 118-million-dollar operating loss.

There is a strong possibility that we may not meet our DIP financing covenants in the fourth quarter and we are currently in discussions with our DIP lenders about this potential breach. They understand the harsh economic realities facing our industry, just as we do. We, and our lenders, recognize that United needs to make significant additional cost reductions and that we will need some time to accomplish that.

These results come as no surprise when you consider the two most significant problems plaguing our industry, excess capacity, which has led to the lowest fares in more than a decade, and record-high fuel costs. The impact of current fuel prices was clearly felt as our fuel expense for the third quarter alone was 291 million dollars higher than our fuel costs in the third quarter of 2003.

As Glenn Tilton stated in NewsReal (quote) "A systemic change is underway in the airline industry, and we have more work to do if we are going to be successful." (end quote) And we are working toward that goal.

We continue our ongoing strategy to reduce costs and leverage our product portfolio. We also continue to finalize a sustainable business plan and we are optimistic that United will attract the financing needed to exit bankruptcy with this revised business plan.

Despite all that is happening in the airline business and to our company, our fundamental business focus remains clear - to run a great airline dedicated to meeting the needs of our customers at a cost and revenue level that allows us to be profitable. The Success Sharing checks that started arriving in your mailboxes this week validate our superb operating performance and impressive customer satisfaction results. These results wouldn't have been possible without you and the great work you are doing every day.

Unfortunately, the harsh economic realities facing our industry mean more must be done. But with our unmatched global route network and the people of United, who continue to deliver outstanding operational results and excellent customer service, no one is better positioned in this industry than we are to be sustainable, profitable and competitive for the long term.

One thing that we have continued to do is innovate, which we proved again today as we launched our new p.s. sm service that will help us compete in the very valuable Premium Transcon market between JFK and LAX and JFK and SFO. The first p.s. sm flight departed from Los Angeles on a newly reconfigured 757 with customer amenities that include a lie-flat seat in United First, hand-held DVD players and noise reduction headsets in first and business. Our premium customers will also enjoy signature champagne cocktails, specialty chocolates and new refreshed menu choices. With Economy Plus seating throughout the entire main cabin, our customers will find comfort in every cabin.

Our outstanding new p.s.sm product and service is the result of the hard work, dedication and creativity of many employees throughout the company. I want to thank everyone from Onboard who has been involved in ensuring the success of this innovative product. It is your can-do spirit, unwavering focus and commitment that made today's launch possible.

That's all for today. Until next week, take care of yourselves and of each other.