Good morning.  This is Sean Donohue and it is Thursday, April 26th. 

Yesterday, we reported our financial results for the first quarter. While complete information is available in NewsReal and on SkyNet, I wanted to highlight some of the key details.

Our net loss for the quarter was $152 million. The details of the results, however, reflect improving financial performance during what has traditionally been a historically weak period for the company.

• Our pre-tax loss for the quarter, excluding reorganization items, dropped approximately $70 million dollars, or 23 percent, from a year earlier.

• We also generated 38 percent more cash from operations year over year, underscoring our ability to generate cash even during a weaker quarter.

• We were impacted negatively in January by overcapacity. We simply had too many seats in the market to be competitive and results for the month were disappointing. Severe storms in February also affected our results.

• Capacity needs were adjusted in February and March and revenue improved throughout the quarter. In March, we outperformed the industry.

• International results for the quarter remained strong, which helped to offset relative weakness on the domestic side. Passenger Unit Revenue was up 10 percent in the Trans-Atlantic market and 16 percent in the Latin American market.

• Cost performance remained strong, with first quarter mainline Unit Cost decreasing by 4.3 percent from the first quarter of 2006. This will, of course, continue to be a major area of focus.

• Aircraft productivity improved 0.8 percent for the quarter. United also moved from sixth to third in DOT on-time arrival for January and February, despite widespread weather and ATC challenges to our operations. This is in so many ways a testament to your hard work and perseverance.

Looking forward, we are continuing to see strong advance ticket bookings and improved load factors.

• We expect international results to remain solid, particularly in the Pacific region.
• The two new Dulles flights to Beijing and Rome have shown solid results since their recent launches, and the new Open Skies agreement will soon allow us to serve any point in Europe from any point in the U.S.
• That said, domestic yields continue to pose a challenge, not just for United but for the entire industry. We are continuing to focus on making sure that our capacity meets the demands of the marketplace. As we indicated on a call with industry analysts and reporters yesterday morning, we are revisiting our capacity level for the second half of the year in light of this softness in the domestic market.

Once again, more complete information about first quarter financial results is available in NewsReal and on SkyNet.

Thank you for all of your efforts on the line every day, and I'll talk with you again soon.