Hello this is Jane Allen with an update for Friday, August 12, 2005.

First, I'm very pleased to share with you that United will be offering an optional supplemental insurance plan for vision care, starting January 1, 2006. In a survey conducted a few months ago, vision care was the most requested voluntary benefit by employees. U.S.-payroll employees will have the option to enroll in the Vision Service Plan at discounted prices. Detailed information on the plan will be sent to employees in the coming months.

You told us that making supplemental benefits available for purchase is important to you, so we will continue to look at other such benefits to offer employees on a voluntary basis. As you may remember, we agreed to work with the AFA to identify supplemental insurance benefits of interest to you. This is the first supplemental offering under that agreement.

Well, it's been an eventful week for the airline industry. Speculation regarding whether Northwest and Delta will seek bankruptcy protection continues in the news, and British Airways was forced to strand 70,000 passengers due to a labor action that started with its London-based catering supplier and was joined by its own baggage handlers and loaders.

In contrast, we were very pleased this week to announce that we have substantially completed the successful renegotiation of our aircraft leases. The most recent agreement, which is with the Public Debt Group, covers 105 aircraft in our fleet, including 47 wide bodies. The agreement is subject to the approval of the Bankruptcy Court. We've been operating throughout most of the summer knowing there existed a risk that some number of planes could be recalled by leaseholders if new agreements or extensions couldn't be reached. The new agreement not only preserves the reliability and global reach of our network, but it does so with financial terms that will work within the parameters of United's business plan, saving the company $300 million annually.

There is one lease transaction that remains open that covers 14 aircraft. Work has already begun to conclude a deal on these planes, but there are some issues left to be resolved. The good news is that the finish line is in sight around this very important effort.

Restructuring these aircraft lease agreements is one of the last critical hurdles on United's path to exit from bankruptcy. And while the effort to get this work done has been extraordinary, all of the work that has been done so far to enable us to compete in what is an increasingly competitive and difficult market is just as important.

The difficulty the airline industry faces was underscored this week as the price of oil escalated to record levels. Earlier today, the price of oil reached $67 a barrel, up 50 percent since the first of the year. The pressures these prices put on the airline industry across the board are enormous. Even with fuel hedges in place at some carriers to help offset the full brunt of these higher prices, and even with fare increases that United and others have put in place, the negative impact on the airline business is widespread.

Operating in this environment makes every dollar of cost that we've reduced during our restructuring all that more valuable. It also means that we must continue to focus on ways to further reduce costs and enhance revenue. Quite simply, we need to get better and more efficient everyday.

In light of these business challenges, our future depends upon our ability to attract and retain customers and to continuously improve what we do. Your role continues to be extremely important. Day in and day out, you influence how our customers view our airline. This busy summer travel season has given you the opportunity to create a positive impression for United with millions of passengers. I am confidant that this impression is a good one.

Thanks for making it a safe and successful week. Fly safe, and thanks for listening.