Hello, this is Jane Allen with an Update for Friday, January 21, 2005. It's the end of a busy week and I have lots of news to share with you.

I'll begin with another update on the 1113 process. On Tuesday, ALPA's Master Executive Council unanimously approved a revised tentative agreement with United that provides the permanent labor cost savings the company needs to successfully complete its restructuring. We also reached tentative agreements with PAFCA and TWU.

This morning Judge Wedoff announced in bankruptcy court that the revised tentative agreements with ALPA, PAFCA and TWU address all of his concerns with respect to the original tentative agreements. As a result, the Judge said that he will enter an order approving those agreements, plus the agreements reached with AFA and AMFA, once they are ratified. We expect all of the ratification votes to be completed by January 31, and provided that the agreements are ratified, the Judge will issue an order approving the agreements on that day.

In the midst of this restructuring activity, you've done a terrific job running the operation. Looking at December, we recorded our second-highest load factor, with flights averaging 77.7 percent full. Yet despite these heavy loads, and the weather-related operational challenges we faced during the month, 39.2 percent of our surveyed customers said they would definitely choose United for their next trip. This means that we exceeded our definite intent to repurchase (DIR) Success Sharing target goal of 38.6 percent for the fourth quarter.

Although we didn't make our target goal for on-time performance, we did achieve our threshold goal. I want to remind you that when we reach our threshold goal of performance, there is a Success Sharing payment, but it is less than the payment generated when we make our target goal. Threshold goals were built into the Success Sharing program so that employees would still receive some reward for their hard work, even during particularly challenging quarters, provided we achieve a level of minimum performance.

What this means is that at the end of this month, eligible employees will receive 100 percent of the possible Success Sharing reward for meeting the DIR goal, and 73 percent of the possible Success Sharing reward for on-time performance. Congratulations!

I have more good news to share about our December Marketrak results. With an overall flight attendant rating for the month at 59.3, we ended the fourth quarter at 60.4, which is 2.1 points above our fourth-quarter goal. Year-to-date we finished 3.1 points above our annual goal of 57.7.

As for meals, we exceeded our fourth-quarter goal by 0.8 point and year-to-date, we are 1.6 points above our annual goal of 42.2.

If you think about it, these achievements are a testament to your continued focus on operational excellence and commitment to customer service, despite the very difficult challenges we have faced throughout 2004. Thanks for your great work.

Turning to 2005, we've set our Success Sharing on-time and DIR goals for the first quarter. Our reliability goal for on-time :00 departure is 69 percent, which is the percentage we achieved last year during the first quarter.

Our goal for definite intent to repurchase is 38.5 percent, which is the same as our actual performance in 2004. This goal reflects the fact that business travel increases during the first quarter after the holiday season. And we know that business travelers, typically part of our Mileage Plus program, tend to provide higher DIR ratings than holiday travelers.

These success sharing goals are tough but achievable. They are based on extensive analysis and the company's best assessment of its future performance. The goals take into account a variety of factors, including past performance patterns, seasonal trends and planned activities, such as construction at a location. Since these factors inevitably will vary throughout the year, so will our quarterly operational goals for Success Sharing.

One more thing on Success Sharing. We are currently finalizing the details of the 2005 Success Sharing program, and you'll hear more about that soon. In addition, as you may know, in our recent union tentative agreements, the company agreed to reduce the percentage of Success Sharing pay employees can earn for several employee groups, including flight attendants. These reductions resulted in savings credited to the target cost reductions for these groups. As Glenn says on his most recent "Eye On UA" call, "Despite the changes in the tentative agreements, the vast majority of United's employees in 2005 will participate in Success Sharing, and we will remain focused on the same common goals-goals that are critical to the success of United."

I'll close by thanking all of you again for your remarkable performance throughout an extraordinarily difficult year. And, there is more difficult work to be done. While we at Headquarters do all that we can to control costs and maximize revenue, I know you will continue to do what you do best - keeping our customers safe and serving them with the consistent, caring and high-quality service that will bring them back to United again and again.

Thank you for listening. Fly safe and I'll talk with you again next week.