Hi, it's Glenn and it's Monday the 19th of July and I'm calling from Chicago.

On our call last week, Pete McDonald and I talked about the need for further cost improvement at United and increased efficiency across the company, and we spoke to the efforts that we are undertaking to close the gap between ourselves and our competitors.

This week, I have asked John Tague, our executive vice president for Marketing, Sales and Revenue, to join me on the call to talk about what we are doing to improve our customers' experience and simultaneously to improve our unit revenues.

The work done by Pete's teams and John's are closely connected, and they're all geared to deliver our customers the quality that they have come to expect from United.

John's team makes a promise to our customers to bring them a particular product, and puts a market-competitive price on that -- one that our customers are willing to pay for the value that they receive. John has to make sure that he does so both cost-effectively and in a way that meets our overall revenue targets.

And, of course, as we discussed last week, Pete's mandate is to make sure that we deliver our products dependably, attentively and safely. He also has to make certain that we do so efficiently and at the lowest possible cost.

So, John, welcome to the call, and I'll now turn it over to you.

John Tague: Thanks, Glenn. All of us at United are driving very hard to bring United to a level of industry-leading revenue performance. The assets we manage should command nothing less than the best revenue performance in the industry. And we're accountable to each of you to do just that in managing them.

I'm pleased to say that we're very close to that objective. Our current revenue performance is among the best in the industry and our plans and programs, we believe, will take us to a point of clear leadership in terms of United's relative revenue performance amongst the network carriers.

We're achieving that by utilizing every tool we have in the box -- the powerful network, the largest international airline in the United States*, Mileage Plus, premium products, and a diverse portfolio: the Express brand, the Ted brand, the Star Alliance. Each of these things can be leveraged to bring our performance to be among the best in the industry.
But most certainly the tremendous service that you are providing through your individual actions is the most significant asset we have with our customers, and when combined with these powerful strengths of the United brand, we're clearly going to be able to deliver the kind of revenue performance that you should expect from us.

We're combining those tools and your commitment with an unwavering focus on execution across the revenue organization, and we are winning in many places. In Denver, we are competing effectively, taking back market share, and, most importantly, our financial performance has improved dramatically. In fact, United has generated an operating profit in the last 12 months in Denver despite the terribly high fuel prices.

So for those that would speculate that we can't compete effectively with a low-cost carrier and win on the bottom line, we offer our own performance in Denver as clear evidence that that's simply wrong.

At Dulles, in the face of sizable and new competition, we are growing our customer base. Dulles is an important international and regional market for United Airlines that has performed very well financially in the past, and we intend to maintain and grow our presence in this key strategic asset.

United is committed to all of its hubs. Not simply because they are there, but because they perform clear and present benefits for each and every one of our regions throughout the country.

Those that would suggest that United's path to success lies in a substantially smaller United are simply wrong. We have "right sized" this airline more than any other network carrier in the country, and we are satisfied generally with the level of capacity we offer today, and where we choose to compete with it. It is these very assets that provide the foundation for United's future.

Let there be no mistake. We are not in retreat, nor is it in our financial interests to be in retreat. Does that mean that we will not constantly re-optimize our routes and our schedules for profit? Certainly not. We're doing that with each and every schedule change.

Our international growth over the last year -- our departure from Miami -- moves that you will see in Chicago this fall -- are evidence of the fact that we are committed to re-optimizing our network presence each and every month as we work our way through what it takes for this asset to be most highly leveraged in the worldwide aviation marketplace.

In fact, we're working today on readjusting our winter schedules to accomplish just that, and you'll see more international growth as we begin to reallocate our capacity to markets that achieve the most level of profitability.

As we do this, we're doing it with and eye towards cost as well. We can't be purely focused on the top-line revenue; we have to be focused in such a way that allows us to do it at a competitive cost to sales. What is the cost of bringing these folks onboard, to acquire them and distribute those tickets?

We're doing this because it's the responsible thing to do, but we're also doing it because it's important for all of us to recognize that no matter what revenue performance we achieve in the industry today, there simply isn't an available path for revenue performance alone to mitigate the tough and hard work we're going to have to do on the cost side of the equation.

And what makes that most difficult, is we're going to have to perform among the best on the revenue side, we're going to have to do the same on the costs, and we're going to have to do it in a way that our customer simply doesn't see it. That the quality of product that you produce and what we invest in our customer proposition remains strong to allow United to compete effectively, and be among the best airlines in the world.

So that's our challenge; we're going to have to do all three at once and that's what we're committed to doing in the months and years ahead at United.

Glenn?

Glenn: Thanks, John. Thanks for giving everyone on the call a good sense of the breadth of work being done across the system, to improve our customer offering and to bring greater value to our customers.

I'd like to echo something that John said there at the close. If we consider the work that we've done to date, the efforts that John spoke to a moment ago, and those that Pete and I discussed last week with respect to costs and efficiency, the common theme at United is continuous improvement.

We're in the process of establishing credibility in the eyes of our customers and the competitive marketplace. But we have much yet to do. As we move forward in the exit financing process, as I mentioned last week, the marketplace will be focused on both: the good foundation we've built and the upside opportunity represented by our reaching our full potential.

So, let's remain focused on improving and continuing to deliver to our customers the level of reliability and service that enabled us to exceed both of our Success Sharing goals for the second quarter. Sincere congratulations from John and myself on that, and for all of your good work.

I'll be talking to you again soon and until then, stay United.

* Based on revenue passenger miles as recently reported to the U.S. Department of Transportation.