Hi, this is Glenn, it's January 4, and I am calling from Chicago. Joining me on the call today is Sara Fields, who will be talking to us about some of the new features of Success Sharing in 2005.

On our last call, Pete McDonald and I talked about the many changes we've made to our operations at United in 2004 -- all part of our ongoing drive to constantly improve the way we run our airline. There is no doubt that last year was one of the most difficult years that this airline has ever faced.

Pete and I talked about the challenges that continue to face us as the fundamental change occurring in the industry continues. The last few years have shown all of us that we are indeed in a new ball game, and we at United have to play it to win.

Since our last call, many things have happened. We are beginning 2005 with the continuation of complex issues that we will resolve as we proceed to exit Chapter 11.

Throughout our restructuring, we have been breaking new ground to create a sustainable and a competitive airline -- one that is aligned with customers’ needs and travel preferences in the 21st century, and one that is resilient to face whatever challenges the future holds for us. And as we all know, if anything in this industry is certain, change is here to stay.

We also know the decisions we've made have been very hard, but they have been necessary. We are making the right choices based on analytical rigor and based on the facts and figures that are in front of us. The fundamental economics of this business are inarguable. You have to cover your costs even when customers do not want to pay as much for airfares as they once did. We know what we have to do and we're willing to do it.

It is also true that most of the issues that we are facing at United are not limited to our company or even to our industry. They are national issues that many companies are wrestling with. Because of our circumstances, we must be at the forefront of change. We don't have the time or the precedent of others to guide our way.

Our recent agreement with ALPA on additional cost savings is precisely the kind of collaborative solution that this company needs to compete effectively. And it demonstrates the hard work, the creativity and the intent on the part of ALPA and its leadership to find workable solutions for United. The old ways of simply trying to survive the latest cycle no longer work, if, in fact, they ever did.

Since ALPA took the lead, two other unions -- PAFCA and TWU -- have stepped up to the plate, with their own tentative agreements now out for ratification. All three of these important unions deserve credit for their leadership and their commitment to genuine solutions at United.

The next several weeks will test our resolve once again. The issues in bankruptcy court are extremely complex. But we have not and must not let that distract us from running our business or maintaining our focus on creating a performance-based culture at United.

A big part of the effort to collaborate and reward all employees when we achieve our business objectives involved the introduction of Success Sharing last year. Our goal then and our goal now is to ensure that all members of the United team are on the same page. Just as we all must work to keep costs in line, we all participate immediately through Success Sharing when we make our commitments.

With that, I'll turn the call over to Sara to talk about how this will work to enhance Success Sharing in 2005. Sara…

Sara Fields:

Thanks, Glenn. Success Sharing, as its name implies, was a success in its first year as we met our customer and operational goals for each of the first three quarters of the year and earned our rewards. In the fourth quarter, we expect to make payments at target for meeting our customer satisfaction metric and at about 70 percent of target for operational performance.

The 2005 Success Sharing plan intensifies our efforts to reduce costs and balance our focus between operational and financial performance metrics important to customers and potential investors.

In 2004, the Success Sharing plan had three goals -- two operational and one financial. At target, half of the plan paid out quarterly against two operational performance goals that emphasize reliability and customer satisfaction -- on-time departure and definite intent to repurchase. The other half of the target tied to an annual financial goal.

In 2005, the Success Sharing plan will include five goals. In addition to the 2004 goals, the 2005 enhanced plan adds two financial goals that pay quarterly as well. These goals emphasize company profit and controllable costs. They will be measured by operating earnings and a cost measure called CASM, minus fuel expenses. CASM is a commonly benchmarked metric across the industry that represents the cost to fly one seat, one mile.

The four quarterly goals combined double the payout an employee can earn quarterly. In other words, though our overall individual award opportunity will be the same as it was in 2004, a greater proportion of the money can be earned each quarter.

Soon, first-quarter operational goals for on-time performance and definite intent to repurchase will be announced.

Our first-quarter and annual financial goals will be presented to the board of directors as part of our 2005 business plan at the end of January -- and we will announce those goals as soon as they are approved. In the coming weeks, we will provide you with more details about Success Sharing in 2005, and what we all can do to achieve our goals.

Back to you, Glenn…

Glenn:

Thanks very much Sara. As Sara has outlined for us, Success Sharing is a way to ensure that everyone in United is motivated, engaged and working together to meet common goals. The program is right for United as we move forward throughout 2005.

Clearly, with all of the financial and restructuring issues in front of us, we have our challenges. But as we talk about these issues, which are important to all of us at United, it's important that we put them in proper perspective and not forget the tragic events taking place in our world, most recently the devastating tsunami in Asia.

On behalf of all of us at United, I want to express our condolences to those who have lost loved ones and our support for our teams and partners in the region who have been working very hard to help all of those in need.

The manner in which employees across United have responded to this crisis by offering to personally help in many different ways has been remarkable. Starting today, United is providing cargo space for relief supplies to southern Thailand. We are also offering customers and employees the opportunity to contribute to the relief effort through our Mileage Plus program.

Once again, I want to thank all of you for your efforts on behalf of the company in the past and very difficult year. We'll be talking to you again soon. Until then, stay focused and stay United.