Hi, it's Glenn. It's January 17, and I'm calling from Chicago , and I'm joined by John Tague.

I want to talk to you on the call today about something that we have discussed many times in the past, and that is how dramatic change continues to take place in our industry. And, it's driven by many factors, but mostly by customers' desire for air travel that is in step with their specific business and leisure requirements.

This ongoing change -- systemic and fundamental -- is an undeniable reality that is always in the forefront of our thinking when we set about making important decisions to ensure the relevance of United now and going forward.

When we began our restructuring more than two years ago, we knew it must include the expectation that our industry would continue to experience any manner of economic phenomenon over time.

Just a few days into 2005, we found ourselves facing another new market development in our highly competitive industry -- just one more in the long list of changing realities that we have met head on in the last 25 months.

And this, of course, is the announcement by Delta, that it's launching widespread fare changes.

This fare program is just another point on the continuum of change that we know is here to stay. Many analyses of market trends have pointed out for some time that the low-cost/low-fare environment is firmly implanted in our industry's base and indeed is spreading across the U.S. air transportation system.

Thus, we launched Ted in specific markets almost a year ago to be responsive to the phenomenon.

In fact, we have made all of our business and restructuring decisions and reached consensual cost-saving agreements with the full and realistic anticipation that the trend would continue.

We've optimized our fleet…we've expanded internationally…we've right-sized domestically…and we've maintained a product line that lets us put the right service in the right market at the right time.

A lot of you, however, have asked for more detail about what the industry fare changes mean for us at United. So, I'm going to turn the call over to John Tague, our Executive Vice President of Marketing, Sales and Revenue, to talk more about why United is well-equipped to handle this challenge.

JOHN:

Thanks Glenn.

Let's first talk about some of the decisions we've made and the work that is being done to best prepare United to compete even as pricing pressure across our industry increases almost daily.

First, we made the right call last year by reducing our domestic 48-state capacity by almost 15 percent for 2005, while at the same time expanding international also by almost 15 percent. All indications support that this was the right decision for our company at the right time.

December results for international operations were extremely strong, and the reduction in domestic prices that Glenn mentioned earlier this year only makes it even more clear why we made this decision.

These decisions are important, but they must be optimized by execution. Executional excellence is what is driving the transformation of our sales efforts. At the same time, we are investing in the skills, resources and technology necessary to better mange our assets, while establishing industry-leading marketing programs and communication strategies.

So, I can best describe how we felt when Delta announced the SimpliFares strategy in one word -- Ready. Not only because of the work everyone at United is doing, but also because in the vast majority of our markets, little changed.

After all, over 50 percent of our revenue will soon be international, and our domestic system has long been the most penetrated by Low Cost Carriers of any network carrier.

While we make no judgment about Delta's initiative and the wisdom of the timing, it is nevertheless exactly the type of escalating pricing pressure that we have long expected.

So, when Delta announced, our team simply went to work, adjusting United's fares where appropriate, not just following Delta or any other competitor's fare structure, but rather by determining what is right for United, market by market. At the same time, we escalated our work to offer rational corporate pricing policies to our customers in light of more and more availability of everyday low pricing across the industry.

While United along with the rest of the industry will likely experience reduced revenues at least in the short term, it has not compromised our view of long-term revenues for United. Each time we face a challenge, I am more heartened by our resiliency and the state of preparedness.

We will continue to focus our work on optimizing revenue and being accountable for the outcome. Our performance is in line with and in fact ahead of many of our competitors. This must continue and improve.

We have long said this is not a battle between LCCs and networks, but rather a battle to build the best company, regardless of labels. At United, we are committed to just that purpose and we see the evidence of our progress everyday in your work and your commitment.

GLENN:

Thanks very much John.

So, 2005 is off to an interesting and challenging start, but, as John has said, in many ways, it is not a dramatic departure from the type of challenges that we have already had to contend with for several years.

The challenges are different in the way they materialize, but really not so different for us in terms of defining how we at United deal with them.

How we deal with these issues is straightforward:

We keep our costs in line…we offer our customers what they value and what they are willing to pay for…we maintain the right set of products to be flexible in the face of change…and we assure our customers and others that we are in this for the long term, ready and willing to compete and to win.

So, until the next call, keep giving our customers what they expect -- quality service -- and as always, stay United.