Hello, this is Jane Allen with an update for Friday, April 30, 2004.

This week, I want to talk about the Success Sharing award checks that were distributed to employees in the past few days. I also will address what the news media has been saying -- and will be saying in the coming weeks -- about United's application for a loan guarantee with the ATSB, and how United is responding. Finally, I'll review United's first-quarter financial results, which were released Thursday.

First, this week marked a milestone for us as United distributed its first Success Sharing payment to employees. This payout is tangible recognition for delivering excellent service to our customers by exceeding our reliability and customer satisfaction goals for the first quarter of the year. It's important to note that all of us are being rewarded for meeting these goals, whatever our job at United, because all of us contributed to this accomplishment. By working together and doing our jobs well every day, we can continue to enjoy the rewards of Success Sharing and help ensure United's future. Thanks to everyone for a terrific job in the first quarter. Let's keep up the good work and make the second quarter another success story.

Now, I want to focus on what Glenn Tilton said recently about the opinions being expressed in the news media about United's loan application currently being considered by the ATSB. Glenn spoke about this important topic during our weekly leadership conference call last Friday, and again this week in his EYE-ON-UA recording, which was published in NewsReal and on SkyNet.

Until the ATSB rules on our loan application, Glenn noted, United will be operating in a fishbowl. We've already seen a recent "Chicago Tribune" editorial that was strongly in favor of our application and an opposing viewpoint published on "The Wall Street Journal's," editorial page. Those who oppose our loan application will be vocal, and we hope that those who support us will be equally vocal. Glenn pointed out that while United already has satisfied each and every one of the loan criteria established by the ATSB, it's important that we continue to operate well every day. Showing that we can sustain our reliability performance and customer satisfaction ratings -- and even improve them -- will give the ATSB even more reason to approve our application. Glenn's message to all of us: be prepared for more negative news stories as our competitors seek to derail our loan application, but don't become discouraged by their efforts.

If you haven't listened to Glenn's EYE-ON-UA message about this topic, or read the transcript on SkyNet, I encourage you to do so. It also includes an excellent letter that Glenn wrote to "The Wall Street Journal" in response to its negative editorial. While we anticipate that the newspaper will publish the letter, it may be edited, so take the opportunity to get the complete version directly from Glenn. The printed version of EYE-0N-UA is available on the home page of SkyNet. Or, you can listen to Glenn's message by calling one of the following numbers: within the United States, call Unitel 393-6682 or call toll-free 1-800-393-6682. Outside the U.S., call Unitel 393-6682 or 1-847-952-1122.

On another topic, United today released its first-quarter financial results and Monthly Operating Report (MOR) for March. Both showed that United is making strong restructuring progress. You can check the April 29 Special NewsReal for all the numbers, but here's a summary of some key points:
* Our operating loss showed strong improvement. At 211 million dollars for the quarter, it improved by 602 million dollars over our results for the same quarter last year. This progress reflects our continued success in controlling costs, increasing productivity and improving revenues. We do, of course, continue to be challenged by high fuel costs that show no signs of abating.
* Our unit revenue is up again. Our passenger unit revenue -- which is passenger revenue per available seat mile -- increased 14 percent year-over-year on a 9 percent increase in yield and a 3.6 point increase in load factor. In fact, our unit revenue improvement outperformed the industry. Also, while our capacity increased less than 1 percent, our traffic increased nearly 6 percent.
* Our unit costs are down significantly. Our mainline unit costs -- which are operating expenses per available seat mile -- were down 11 percent from a year ago. Excluding fuel, unit costs dropped 14 percent, an improvement that also outperformed the industry.
* Our operational performance remained strong. As you know from meeting our Success Sharing goals, we continued an outstanding operation in the first quarter. Sixty-nine percent of our flights departed on-time :00, which was 9 points better than target. Our customer satisfaction ratings were among the company's highest ever. Our ratings for definite intent to repurchase, as well as reservations, check-in and seat comfort, were at all-time highs for the quarter.

The bottom line is that, while it's not been easy, we are continuing to make great progress and steadily transform our airline into a fierce, long-term competitor. There are still hurdles, however, and we must stay focused on strengthening our finances and taking care of our passengers.

Thanks for the great work you did in the first quarter and your continued efforts every day. I hope your Success-Sharing check has arrived. I'll talk to you again soon.