Good morning, it's Wednesday, May 4th and we are calling today from Chicago.

Joining me on the call today are Pete McDonald, our Executive Vice President and Chief Operating Officer and John Tague, our Executive Vice President, responsible for Marketing, Sales and Revenue.

As many of you know, Pete and John recently began a series of meetings here at headquarters to update everyone on the state of our business at United.

The meetings have been well-received and both of them have reported excellent interest and participation from all that have had the opportunity to attend.

They will be sharing the same information with many of you across the system in the very near future. And they are going to be doing this on a regular basis.

To give their visits something of a head start, this morning I've asked Pete and John to join the call and to give us an overview. I am personally pleased by the progress that they have made to reduce our costs, improve the quality of our operations and generate revenue. These are excellent examples of how we are doing better work for our customers than we have done for quite some time.

With that, I'll first hand it over to John. John over to you.

John: Thanks Glenn.

When we are talking about our goals, we make it clear that we want to lead the industry in cost efficiency and revenue performance. The work we've done together, and the work we have identified that remains to be done, will clearly position United as a cost leader.

Given the assets we have and the superb job the people of United are doing for our customers, achieving the number one position in industry revenue performance is also clearly within our grasp.

Achieving that goal will open a world of possibilities for United in the future; however, without strong financial performance the possibilities are clearly limited.

One of the significant challenges of United's restructuring is that we must exit with a business platform that provides us the flexibility to create value for a wide variety of customers. On the one hand, we have to produce the basic product at a level of cost that allows us to accommodate large volumes of price-sensitive buyers without which the scale and scope of our network would not be possible. On the other hand, we have to offer a more complex and sophisticated set of services for customers who are willing to pay for and, in fact, demand a higher level of service. This strategy is being rewarded.

• In 2004, United moved its industry performance as measured by stage-length adjusted revenue, from fourth to second place.
  
• That jump translates into hundreds of millions of dollars of improved revenue results year-over-year.
  
• Beyond the pressure exerted by low-cost carriers, there is the opportunity that is presented by premium customers and international growth. In fact, by the end of this year, measured on a beyond revenue basis, over half of United's revenues will come from international services. And almost half of those revenues will be earned in the front two cabins.
  
• Additionally, over 30 percent of United's revenues are obtained in the premium cabins worldwide. This segment values what we produce. We must gain share in these critical markets in the years ahead if we are to achieve our financial objectives.
  
• Clearly the pressure the industry is facing today, particularly from high fuel prices, has made our efforts in this area more necessary and important than ever. To continue to improve United's performance relative to our peers, we'll be focusing on key projects such as: leveraging the direct sales opportunity that's presented by Economy Plus, transforming our sales division into a world-class selling organization. That work is already beginning to create a real competitive advantage for United. And as I've said before, we'll be focusing on optimizing our premium cabin revenues which will be among our highest priorities.
  
• Equally as important is the tough, detailed, thorough and often unnoticed work of making sure revenue execution at United operates at the highest levels in our industry.
  
  

In meeting after meeting I am heartened by the scale of work and the quality of work that is in the pipeline and will allow us to continuously drive performance to a level we have not before achieved at United.

We have the best assets in the airline industry and the opportunity for success is there before us, as long as we execute well and focus on achieving our goals and continue to work together to protect the United franchise that each of you has worked so hard to sustain. Pete.

Pete:

Thanks, John. When John and I discuss United's business plan, we talk about where we're headed.

We're not going to become a point-to-point carrier or a single fleet airline.

What we are going to do is use the best assets in the industry – our hubs, our aircraft, our network, our frequent flyer program, and, of course, our people – to be the best full-service airline in the business, with mainline, Ted, United Express and Star.

It's all about execution. There's no surprise in our business plan – no major change in the kind of company we are. Our goal is to operate cost efficiently and provide great customer service and do our best work every day.

Operationally, we're running the best airline in the history of the company: On-time arrival and departure performance is the best it's ever been. Complaints are down to industry average, and mishandled baggage is down as well.

Our customers are responding. Our Definite Intent to Repurchase ratings are higher than ever before. Our flight attendants, Reservations, meals and check-in efficiencies ratings are at all-time highs.

As we've posted great performance, we have also significantly reduced our costs. Our cost per available seat mile excluding fuel, or ex-fuel CASM, from 2002 to 2004 has been reduced by 16.6 percent through reductions in labor costs, distribution cost, purchasing cost and many other projects.

For example, we've negotiated extremely favorable Express contracts in the industry, we've put a comprehensive fuel conservation program in place through the work of ALPA and Steve Forte. And we've cut our catering costs.

But our competitors haven't been standing still. They've reduced costs, as well.

We've got a sharp focus on costs and revenue opportunities, but there is more to do. We're improving planeside operations through the work of Larry DeShon and his team. We've improved maintenance cycle times through the work of Greg Hall, Bill Norman and AMFA so that we can bring in more work from other carriers. Our cargo operation, headed up by Scott Dolan, increased revenue by 12 percent last year. Rick Poulton and his team are also keeping the pressure on strategic sourcing to ensure that we get the best contracts in every area in terms of both efficiency and costs.

We're also continuing to work through the difficult issues that affect our employees. We need to finalize labor savings with AMFA and the IAM, terminate and replace our pensions, and finalize our aircraft ownership costs through 1110 negotiations.

When we complete that work, we will lock up our exit financing, put together our plan of reorganization and emerge from Chapter 11.

And that's what it's all about – emerging as a winning company that provides great service for our customers and jobs for our employees.

Your work, which continues to produce such remarkable results despite the restructuring, is enormously important to our success, to our customers and to Glenn, John and me.

Glenn:

Thanks very much Pete and thank you John.
The type of work that you have both outlined, which goes well beyond restructuring, shows just how much momentum we've gained across the system, and how far we have come together.

We have re-established a reputation for credibility and for dependability with our important customers and with the business community at large. And I know it hasn't been easy. Later today I am going to be on a call with many of our corporate customers and travel agents and I'll be joined by Graham Atkinson and Jeff Foland to have a very similar conversation with all of them, live.

The main point for all of us to remember is that this work – our significant and measurable results over the last two years in operations and in cost improvement and in revenue improvement – have had a major impact.

We must maintain the momentum that we have created, continuing to earn our right to compete, by focusing on what our customers expect from all of us every day. They expect products, service and value.

I'd like to close by talking about what John and Pete say when they wrap up their meetings. And that is that through all of this hard work, we have preserved our assets and we know what it is going to take for us to succeed in the future.

The progress that we have made has enabled us to create a genuine opportunity for all of us at United Airlines.

That's it for now. Until the next call, stay United.