Hello, this is Jane Allen with an Update for Saturday, January 8, 2005.

I am pleased to let you know that we reached a tentative agreement with the AFA today on the permanent labor cost savings we need to successfully complete our restructuring, while leaving pension issues to be resolved. Over the next 90 days, we will work with the AFA to attempt to resolve pension issues. This tentative agreement will now go out to the AFA's Master Executive Council for review and approval, and to the flight attendants for a ratification vote.

United has also reached a tentative agreement with AMFA. Because of the tentative agreements with AFA and AMFA, we will not be moving forward on Monday morning with an 1113 (c) trial.

These agreements come at the end of a very busy and productive week. Thursday morning we learned that members of ALPA, PAFCA and TWU voted to ratify their new labor agreements. Later in the day, Judge Wedoff held a hearing on United's motion to approve the agreements. At that hearing, the company and ALPA, along with those objecting to the agreements, presented their arguments on the motion. On Friday, Judge Wedoff denied the motion to approve the ALPA agreement. Because the TWU and PAFCA motions are impacted by that ruling, they will be withdrawn, revised and resubmitted to the court for approval at a later date. Though this news is disappointing, we believe the agreement we reached with ALPA is fair and equitable and in the best interest of the stakeholders in the bankruptcy. The company is committed to working with ALPA to attempt to reach a consensual agreement that will deliver the cost savings we need to attract exit financing and successfully complete our restructuring.

Turning to the IAM, United remains engaged in intensive good faith efforts with the IAM and substantial progress has been made. However, the IAM asked for more time to work on the remaining issues, especially pensions. As a result, United filed a motion with the court on Thursday seeking interim savings from the IAM, which Judge Wedoff granted. The court's order authorizes a temporary pay rate reduction for IAM-represented employees of 11.5 percent. In addition, the order provides that employees will receive 70 percent of the pay they would normally receive for sick days. These interim savings give the company and IAM more time to negotiate a consensual agreement that will provide permanent labor cost reductions.

Everyone at United has made significant contributions, in compensation, lifestyle and other ways, to help our company build a solid foundation for our future success. There is more we need to do as a company, but we are heading in the right direction. And despite all of the challenges and pressure you are facing, I know you are doing what you do best - serving our customers with the consistent care and high-quality service that will bring them back to United.

That's all I have for today. It has been an especially busy and challenging week. Thanks to all of you for making it a safe and successful one.