Hi, it's Glenn, it's Thursday, the 27th of January, and today I have asked Jake Brace to join me on the call.

We reported our fourth quarter and full year results today, and there is absolutely no question that it was another very difficult year.

Our operating loss for the fourth quarter was 493 million dollars as our fuel expenses rose by more than 50 percent. That was combined with a difficult revenue environment in a very tough domestic market.

Clearly, this performance is unsustainable.

We have made good progress with substantial cost reductions already underway. But as we have said repeatedly on the call and as this quarter shows without any question, we have more work to do.

While the quarter was certainly difficult, I want to highlight areas where we at United did well. Significantly, we delivered solid results against our competitors on a unit revenue basis, and Jake will speak to this in the course of his comments. This shows the work that we are doing to identify markets where we compete best is paying off.

We also reached consensual tentative agreements with most of our unionized employees and we have a temporary agreement with the IAM in place, and they represent substantial additional cost savings for the company going forward. While the quarter ended with operational challenges, across the system, for the full year we turned in performance that was among the best in United's history.

The importance of these last two items cannot be overstated. But neither can the fact that we must continue to improve.

For more details on the financial results, I now want to turn the call over to Jake, our chief financial and chief restructuring officer.

Jake, over to you.

Thanks, Glenn. I appreciate the opportunity to talk with everyone about our financials and our current situation.

As Glenn said, our loss for the quarter was large, it was, however, in line with our expectations, with fuel costs as the number one item impacting the results.

Our average fuel price for the quarter was 1 dollar 45 cents per gallon, up 52 percent on a year-over-year basis, and that was despite 52 million dollars in gains from fuel hedges we were able to put in place during 2004.

For the full year, our fuel bill rose 42 percent to almost 3 billion dollars -- about a billion dollars more than we paid in 2003.

And while developments in the energy sector are outside our control, there were other areas where we've made significant progress during the year as we worked with all of our key stakeholders to reshape the company.

I was talking to Glenn a short while ago about a meeting we held with our DIP lenders yesterday. It's our practice to periodically update them on our financial situation, our financial performance and where we are in our restructuring. Yesterday happened to be one of those days. One of the things that we reported to them was that our system unit revenue performance exceeded the industry in both November and December, and we attributed this, in large part, to three main items:

* The first was the reduction in domestic capacity and the shift of that capacity to the international markets that was implemented by John Tague and his team back in the fall;
* The second reason was the excellent customer service we had throughout the year but especially in the fourth quarter; and, then, finally,
* We attributed it to simply running a good airline.

In particular, our international unit revenue in the fourth quarter was really quite strong year-over-year. We think that this shift of capacity to the international markets was a good move for our future.

On the expense front, we continued to implement additional cost savings beyond those enabled by our CBAs. We expect these actions to deliver savings in 2005 and beyond. This, as you know, is part of the effort we launched last summer to reduce costs everywhere we could before we sought additional reductions from our employees.

Also during 2005, we will have 68 fewer aircraft in our fleet than we flew in August 2004, as we pull down capacity from markets that don't perform well. We will continue to address our aircraft costs as part of the 1110 process, finding opportunities to lower them wherever possible.

In addition, we have also made changes to our United Express operations, seeking competitive bids from regional affiliates to further lower our non-labor costs as market opportunities arise.

And we are working to improve cost of sales through a variety of initiatives, including efforts by Graham Atkinson and his team to cut distribution costs.

All of this work makes it clear that we have made significant progress so far in optimizing revenue, and with 2 billion dollars in additional cost savings identified in both labor and non-labor costs, we are bringing our total annual cost savings to about 7 billion dollars beginning in 2005. Now, as Glenn has said, cost reduction and margin improvement is not a one-time thing, it is an ongoing process. We need to constantly identify things we can improve on.

It is important to emphasize that while we have been in bankruptcy longer than initially expected, we have made good use of our time in Chapter 11 and are now moving to conclude that work and exit bankruptcy well-positioned for the future.

As the industry environment continued to change and to present new challenges, we were fortunate in not having exited too soon. But now, we have accomplished a large portion of the work we set out to do and are turning our attention to the exit process -- once we address our remaining restructuring items.

Back to you Glenn.

Thanks very much for that report, Jake.

As everyone in the company works hard to improve the financial performance that Jake referred to in his comments, we all have very specific ways to personally contribute, and they all center on continuing to deliver the level of service that our customers and the marketplace expect of us.

While we have done an enormous amount of work to address our cost structure, our competitors have done the same, and they will continue to do so. This is an incredibly tough industry where no one can stand still and expect to be competitive.

As I've said before, if anything in this industry is certain, it is the reality of constant change. We all must accept it and we must continue to fundamentally improve our business while restructuring the company.

Although some in the industry and perhaps some in the company look forward to the day when this industry, including United, will fly into endless "blue skies," that is not the reality of the industry today. We must have the desire and the will to adapt to an ever-changing environment, even if it frustrates us. It is demanding work, but we are well on our way to creating the attitude and the culture at United to do that.

Until the next time, stay United.