Hello this is Jane Allen with an update for Friday, July 29, 2005.

Last week, I talked about how we have reasons to be optimistic about the future of our airline. This week, there are 48 million more reasons for optimism.

On Wednesday, we reported an operating profit of $48 million for the second quarter, which includes the months of April, May and June. While we all know that much work remains to be done, it's important to recognize that, among legacy carriers, we turned in a very competitive performance over this period of time. We clearly distinguished ourselves from Delta and Northwest, both of which are just beginning to undertake the difficult work we are well into, and we are making progress in our financial performance relative to American and Continental.

This means the work that you do everyday in serving and taking care of our customers and the hard work we have done collectively to restructure our airline is paying off.

Now, if you've heard or read media reports on our financial performance, you no doubt saw that United reported a net loss of $1.43 billion for the quarter. Those reports are true, and it's true that there is a big difference between a net loss of $1.43 billion and an operating profit of $48 million. In order to appreciate how much we have accomplished in our restructuring, it's important to understand the difference between net and operating results.

A company's "net" financial results come from taking a company's total revenues minus total expenses. Those total expenses include such financial items as interest income, dividend income, and interest expense, along with extraordinary items, such as restructuring costs, non-cash accounting items and taxes.

"Operating" results reflect the difference between a company's day-to-day revenues from operations minus the costs and expenses that come from the day-to-day operating activities of the company. Operating results exclude financial related items, extraordinary items, and taxes.

As you might expect, United had a number of extraordinary and special financial related items. For the second quarter, this included a non-cash charge of $1.39 billion for reorganization items that cover the transfer of pensions to the PBGC, the rejection of aircraft and other creditor claims. These items will be addressed in the normal bankruptcy process as we exit from Chapter 11. While it is proper for us to reflect these non-cash items as part of our overall results, they do not reflect how our core business is performing.

That's why the important number to focus on is our operating earnings, which is the correct measure of the underlying strength of our business. And on that basis, we had a strong performance, particularly when you take into account that our fuel costs were $262 million higher than the second quarter of last year. Overall, we reduced our mainline costs, excluding fuel, by three percent, while increasing mainline unit revenues five percent.

Accounting issues and terminology aside, these are positive results that we can continue to build on. From a financial perspective, aircraft utilization was another bright spot. We have been able to reduce the size of our fleet by 13 percent while maintaining 97 percent of our available seat miles for the public.

For you, that means higher load factors. But full planes are good for the sustained future of our airline. And by taking good care of these customers, we increase the likelihood of their returning to United the next time they travel by air.

So, take a moment over the next few days to be optimistic about the future of our company. We all deserve to feel a measure of pride from what we've achieved. This is tangible evidence that while fuel costs remain very high, our business plan is working.

They key to our long-term success remains continuous improvement - to get better each and every quarter. We must remain focused on running a great airline by reducing costs, improving our operational efficiency and increasing our revenue. And we must continue to make sound business decisions and the changes necessary to deliver performance that outpaces that of our competitors.

Our second-quarter financial results are proof that you remain committed to doing whatever it takes to accomplish our goals. And by doing your best work every day, you are letting our customers, competitors and detractors know that regardless of where we have been - we are definitely here to stay.

That's all for today. Fly safely and thanks for listening.