Hi, it's Glenn and it's Monday.

As I said on the call last week, I had the opportunity to present the company's business case to the financial community on Thursday in New York at the annual JP Morgan Airline Conference. Today on the call I'd like to update you on some of the highlights of what I presented.

As you know the quality of the work done by the team at United, all of you on the call, gave me a powerful platform, an incredible platform, on which to discuss our future.

I told the audience that that was a result of your hard work. And as a result of the work:

We have been able to cut our mainline cost per available seat mile, or CASM -excluding fuel by some 17 percent since 2002;


We continue to lower our non-labor costs dramatically, and even though our overhead costs are the best that they've been for many years, we'll continue to drive these costs lower as we go forward.


We have been able to reduce our labor CASM by 26 percent over the last two years.
On the revenue side, we moved to second place in unit revenue in 2004 from fourth place in 2003 among the major carriers that include Southwest, through more effective revenue management across the entire United system.
These are the type of results the financial community wants to see from the company, with constant improvement going forward.

Our focus on operating earnings is also showing results, as I mentioned in my speech.

Over a two-year period, we had the best margin improvement, 16 points, in the industry in the fourth quarter -- and the second best, 14 points, for the full year.

Our lenders recognize the progress the company is making. They have agreed to participate in an amended DIP financing agreement, on favorable terms for United and for our stakeholders.

The agreement allows us to focus on completing the restructuring work we have remaining. That work includes:

Concluding our labor negotiations;


Further lowering our costs;


Building a culture focused on performance;


And transforming the way in which we think and work together at United; and,


Resolving our pension issues. Even after two years of exploring alternative solutions, this remains the most difficult, but still the absolutely necessary action that we must take.
Just as we are changing at United, the industry is changing as well. Every airline executive presenting at the conference talked about the difficult environment and how the domestic system, in particular, remains extremely challenging.

Part of what I outlined was the critical strategy that we at United adopted from the start of the bankruptcy, which was to keep our assets intact, preserving our options as we move forward and as the changes in the industry become more apparent to us.

The flexibility is as important today as ever before. Building a strong United allows us to participate in the industry challenges and changes, whatever they may be. Whatever occurs we must be able to compete from a position of improved strength.

When I go back to the JP Morgan Conference next year my goal is to report that the end of Chapter 11 was actually the beginning -- that exit was the passage into a new phase of our history at United.

It's important to note that we are moving steadily to exit. One of the more interesting questions at the conference asked why -- given this difficult environment -- we do not simply choose to stay in bankruptcy. Many in the audience thought that that was not a serious notion -- but the question was actually relevant given the state of the industry, and the fuel prices that are impacting every single airline.

My answer: simply that we are nearing the end of our work and that once we have finished our remaining issues, it will be time for all of us to move ahead. Restructuring this company was necessary but also draining of our resources and taxing of our energy.

When we exit, we will continue to transform this airline, as I've said, but we will do it having successfully gone through the Chapter 11 experience. It's the right thing for us to have done.

Until the next call, stay United.