8Decrease in capital lease deposits180 98

31, 2008 (in millions)Included Included in In FuelNon-Operating Expense ExpenseTotalNon-cash, net mark-to-market loss$(449)$(117)$(566)Cash net loss on settled contracts(142) (228) (370)Total recorded net losses$(591)$(345)$(936)Action Taken to Enhance Cash PositionThe company completed several transactions during the fourth quarter thathelped strengthen its liquidity.It raised $215 million from aircraftfinancing transactions that closed during the quarter along with $66 millionin proceeds from asset sales.The company also received net proceeds of $107million through equity issuances during the quarter.During the quarter, the company entered into an amendment with its largestcredit card processor that suspends until Jan. 20, 2010, the requirement forUnited to post or maintain additional cash reserves with the processor ifUnited's balance of unrestricted cash, cash equivalents and short-terminvestments falls below $2.5 billion. In exchange for this benefit, United hasgranted the processor a security interest in certain United owned aircraft.During the fourth quarter, the company generated negative $989 million ofoperating cash flow and negative $1.1 billion of free cash flow, defined asoperating cash flow less capital expenditures.Both the operating cash flowand free cash flow include $587 million in additional net fuel hedge depositsthat were paid during the quarter.The company ended the quarter with an unrestricted cash balance of $2.0billion, a restricted cash balance of $272 million and $965 million in cashdeposits held by its fuel hedge counterparties.Early in the first quarter of 2009 the company closed an additionalaircraft financing transaction, which raised $95 million, and expects to raiseapproximately $160 million from a cargo facility relocation agreement withChicago's O'Hare International Airport.In January, the company received netproceeds of $62 million from equity issuances, and anticipates receiving anadditional $27 million of net proceeds in the first quarter by completing theequity issuances that were announced in December.Altogether, the companyexpects to raise about $350 million from these transactions by the end of thefirst quarter."United, like many airlines across the industry, experienced significantcash pressures associated with fuel hedge positions in 2008 as oil pricesdeclined more than $100 a barrel," said Kathryn Mikells, senior vice presidentand CFO. "The cash impact, while significant, is now behind us, and we arewell positioned to manage through a challenging 2009 with good expected costperformance building on our momentum from this past year."Income TaxesBecause of its net operating loss carry-forwards, the company expects topay minimal cash taxes for the foreseeable future and is not recordingincremental tax benefits at this time.Significant Improvements in Operating ResultsUnited has seen significant improvement in its operational performanceduring the fourth quarter as a result of its increased focus on operationalexecution, improvements in the schedule structure and the industry-widereduction in capacity.The company has also benefited from the Novemberopening of the new runway at Chicago O'Hare International Airport.United's on-time arrival :14 performance for the fourth quarter was 79.2percent, the company's best fourth quarter performance since 2004.Itscancellation rate was 1.4 percent, which is the company's lowest fourthquarter rate since 2005.As a result of these improvements, United rankedsecond in on-time performance for the fourth quarter among the five major U.S work carriers, including Continental Airlines, American Airlines, USAirways, and the combined Delta / Northwest Airlines.Business HighlightsUnited began new daily non-stop passenger and cargo service between Washington, D.C., and Dubai on October 28.United announced new daily non-stop passenger and cargo service between Washington, D.C., and both Geneva and Moscow on its newly reconfigured B767 with fully lie-flat seats in first and business class.United and EGYPTAIR signed an agreement to offer codeshare flights, which would expand the international destinations and enhance the frequent flyer benefits offered to customers of both carriers.United announced it will offer in-flight internet service on it p.s. transcontinental service between New York and California starting in the second half of 2009.United became the first U.S. carrier to participate in the Asia and South Pacific Initiative to Reduce Emissions (ASPIRE).United Flight 870 on Nov. Travel Trade Gazette Asia honored United with the award and Business Traveler Asia-Pacific recognized United with the same accolade for the eighth consecutive year.United became the first U.S.

airline to offer overnight baggage shipping service via an overnight courier that will provide customers with a more convenient and easy way to travel - without their luggage. United's new service, Door-to-Door Baggage, enables customers in the continental United States to conveniently ship their luggage, or other travel items like skis or golf clubs, overnight from a home or office directly to their destinations within the 48 contiguous United States.2009 OutlookUnited is on track to complete the previously announced removal of 100aircraft from its fleet by the end of 2009.The company's capacity outlookfor the first quarter 2009 and full-year 2009 is shown below: Capacity First QuarterFull-year(Available Seat Miles) 20092009Domestic -14.0 to -13.0 -12.5 to -11.5International-15.0 to -14.0-6.0 to -5.0Mainline -14.5 to -13.5-9.5 to -8.5Express 4.0 to 5.0 8.0 to 9.0Consolidated Domestic-11.0 to -10.0-9.0 to -8.0Consolidated -12.5 to -11.5-8.0 to -7.0 Increase/(Decrease) versus 2008For the first quarter 2009, the company anticipates mainline CASM,excluding fuel, profit sharing and certain accounting charges, to increasebetween 4.0 and 5.0 percent despite a mainline capacity reduction of 14percent.Consolidated CASM, excluding fuel, profit sharing and certainaccounting charges, is also expected to increase between 4.0 and 5.0 percent.Continuing to build on its mainline non-fuel CASM results from 2008, thecompany anticipates full-year 2009 mainline CASM, excluding fuel, profitsharing and certain accounting charges, to increase between 2.5 and 3.5percent despite a 9 percent reduction in mainline capacity.ConsolidatedCASM, excluding fuel, profit sharing and certain accounting charges, is alsoexpected to increase between 2.5 and 3.5 percent.United is taking additional steps in 2009 to reduce overhead costs.Thecompany will further reduce the number of salaried and management employees byapproximately 1,000 positions by the end of 2009.This is in addition to the1,500 positions the company announced in the second quarter, and whencompleted, will bring the total reduction in its salaried and management staffto approximately 2,500, or nearly 30 percent, since the beginning of 2008.The company is also limiting its non-aircraft capital budget to $450million for 2009 and has no capital requirements for new aircraft in 2009.The company has scheduled debt and capital lease payment obligations of $900million in 2009.Since the company's Dec. 17, 2008, disclosure, it has hedged an additional7 percent of its 2009 consolidated fuel consumption at an average price of $53per barrel using call options.A table outlining the company's hedgepositions can be found in note 9 of the attached statement of consolidatedoperations.The company estimates the following fuel prices for the first quarterbased on the closing forward curve on January 16. Three Months EndingMainline Fuel Price (Price per Gallon)(1)March 31, 2009Mainline Fuel price including taxes and excluding impact of hedges$1.73Mainline Fuel price including taxes and cash net gains or losses on settled hedges(2)$2.22Mainline Fuel price including taxes, cash net gains or losses on settled hedges, and impact of non-cash, net mark-to-market gains or losses on settled and unsettled hedges(2) $1.83(1) Based on the January 16 closing forward price(2) Includes only the hedge gains/losses that are accounted for in thefuel expense lineIn addition to the impact of fuel hedges on fuel expense, a portion of thecompany's total fuel hedge impact is recorded as a non-operating expense.Thecompany estimates that $81 million in cash fuel hedging losses and $69 millionin non-cash, net mark-to-market fuel hedging gains will be recorded in non-operating income / expense for the first quarter based on January 16 closingforward curve prices.The company estimates it will have the following amounts posted as fuelhedge collateral at each quarter end: Projected Fuel Hedge Collateral Balance at Each Quarter End Jan 19, 2009Q1 2009Q2 2009 Q3 2009Q4 2009Based on Jan.

16 closing forward crude oil prices$780M $615M$315M $110M$25MAdditional details can be found in note 10 of the attached statement ofconsolidated operations.About UnitedUnited Airlines (NASDAQ: UAUA) operates more than 3,000 flights a day onUnited and United Express to more than 200 U.S. domestic and internationaldestinations from its hubs in Los Angeles, San Francisco, Denver, Chicago andWashington, D.C.With key global air rights in the Asia-Pacific region,Europe and Latin America, United is one of the largest international carriersbased in the United States.United also is a founding member of StarAlliance, which provides connections for our customers to 912 destinations in159 countries worldwide.United's 49,500 employees reside in every U.S. 1, 2010.Safe Harbor Statement under the Private Securities Litigation Reform Actof 1995:Certain statements included in this press release are forward-looking and thus reflect the company's current expectations and beliefs withrespect to certain current and future events and financial performance.Suchforward-looking statements are and will be subject to many risks anduncertainties relating to the operations and business environment of thecompany that may cause actual results to differ materially from any futureresults expressed or implied in such forward-looking statements.Factors thatcould significantly affect net earnings, revenues, expenses, costs, loadfactor and capacity include, without limitation, the following: the company'sability to comply with the terms of its credit facility; the costs andavailability of financing; the company's ability to execute its business plan;the company's ability to realize benefits from its resource optimizationefforts and cost reduction initiatives; the company's ability to attract,motivate and/or retain key employees; the company's ability to attract andretain customers; demand for transportation in the markets in which thecompany operates; general economic conditions (including interest rates,foreign currency exchange rates, investment or credit market conditions, crudeoil prices and energy refining capacity in relevant markets); the effects ofany hostilities or act of war or any terrorist attack; the ability of otherair carriers with whom the company has alliances or partnerships to providethe services contemplated by the respective arrangements with such carriers;the costs and availability of aircraft insurance; the costs of jet fuel; ourability to cost-effectively hedge against increases in the price of jet fuel;any potential realized or unrealized gains or losses related to fuel orcurrency hedging programs; the costs associated with security measures andpractices; labor costs; industry consolidation; competitive pressures onpricing and on demand; capacity decisions of United and/or its competitors;U.S. or foreign governmental legislation, regulation and other actions,including the effect of open skies agreements; the company's ability toutilize its net operating losses; the ability of the company to maintainsatisfactory labor relations and our ability to avoid any disruptions tooperations due to any potential actions by our labor groups; weatherconditions; and other risks and uncertainties set forth from time to time inUAL's reports to the United States Securities and Exchange Commission.Consequently, the forward-looking statements should not be regarded asrepresentations or warranties by the company that such matters will berealized.The company disclaims any intent or obligation to update or reviseany of the forward-looking statements, whether in response to new information,unforeseen events, changed circumstances or otherwise.ADD: /FIRST AND FINAL ADD AQW504 UAL Corporation Earnings/UAL CORPORATION AND SUBSIDIARY COMPANIESSTATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED) (In millions, except per share amounts) Three Months EndedDecember 31, Increase/(In accordance with GAAP) 20082007(Decrease)Operating revenues:Passenger - United Airlines $3,413$3,797 (10.1)Passenger - Regional Affiliates752 765(1.7)Cargo180 223 (19.3)Other operating revenues 202 245 (17.6) 4,547 5,030(9.6)Operating expenses:Aircraft fuel (Notes 3 and 5)1,838 1,43228.4Salaries and related costs (Note 5)1,049 1,112(5.7)Regional affiliates (a)740 765(3.3)Purchased services 328 366 (10.4)Depreciation and amortization (Note 5) 262 23113.4Aircraft maintenance materials and outside repairs 228 306 (25.5)Landing fees and other rent211 222(5.0)Distribution expenses152 183 (16.9)Other impairments and special items (Note 5) 125 - -Aircraft rent 9599(4.0)Cost of third party sales 6878 (12.8)Other operating expenses (Note 5)263 300 (12.3) 5,359 5,094 5.2Loss from operations(812)(64) NMOther income (expense):Interest expense(131) (155)(15.5)Interest income 1266 (81.8)Interest capitalized 4 5 (20.0)Gain on sale of investment -41(100.0)Miscellaneous, net (Note 5) (373)9 -(488)(34) NMLoss before income taxes and equity in earnings of affiliates (1,300)(98) NMIncome tax expense (benefit) (Note 5)5 (43)-Loss before equity in earnings of affiliates (1,305)(55) NMEquity in earnings of affiliates, net of tax2 2 -Net loss $(1,303) $(53) NMLoss per share, basic and diluted $(9.91) $(0.47)Weighted average shares, basic and diluted 131.6 117.7See accompanying notes.(a) Regional affiliates expense includes regional aircraft rent expense.See Note 2 for more information.NMNot meaningful.UAL CORPORATION AND SUBSIDIARY COMPANIESSTATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED) (In millions, except per share amounts)Twelve Months EndedDecember 31, Increase/(In accordance with GAAP) 20082007(Decrease)Operating revenues:Passenger - United Airlines$15,337 $15,254 0.5Passenger - Regional Affiliates3,098 3,063 1.1Cargo854 77010.9Special operating items (Note 5) -45(100.0)Other operating revenues 905 1,011 (10.5)20,19420,143 0.3Operating expenses:Aircraft fuel (Notes 3 and 5)7,722 5,00354.3Salaries and related costs (Note 5)4,311 4,261 1.2Regional affiliates (a)3,248 2,94110.4Purchased services (Note 5)1,375 1,346 2.2Aircraft maintenance materials and outside repairs 1,096 1,166(6.0)Depreciation and amortization (Note 5)932 925 0.8Landing fees and other rent862 876(1.6)Distribution expenses710 779(8.9)Aircraft rent409 406 0.7Cost of third party sales272 316 (13.9)Goodwill impairment (Note 5) 2,277 - -Other impairments and special items (Note 5)339 (44)-Other operating expenses (Note 5)1,079 1,131(4.6)24,63219,10628.9Earnings (loss) from operations (4,438)1,037 -Other income (expense):Interest expense(523) (661)(20.9)Interest income112 257 (56.4)Interest capitalized2019 5.3Gain on sale of investment -41(100.0)Miscellaneous, net (Note 5) (550)2 -(941) (342)175.1Earnings (loss) before income taxes and equity in earnings of affiliates (5,379)695 -Income tax expense (benefit) (Note 5)(25)297 -Earnings (loss) before equity in earnings of affiliates (5,354)398 -Equity in earnings of affiliates, net of tax6 520.0Net income (loss)$(5,348) $403 -Earnings (loss) per share, basic $(42.21)$3.34Earnings (loss) per share, diluted $(42.21)$2.79Weighted average shares, basic 126.8 117.4Weighted average shares, diluted 126.8 153.7See accompanying notes.(a) Regional affiliates expense includes regional aircraft rent expense.See Note 2 for more information.NMNot meaningful. UAL CORPORATION AND SUBSIDIARY COMPANIES CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (UNAUDITED)(In millions)Three Months Twelve Months Ended Ended December 31,Increase/ December 31, Increase/(In accordance with GAAP) 20082007 (Decrease)20082007 (Decrease)Cash flows provided (used) by operating activities (a)$(989) $132 -$(1,239) $2,134 -Cash flows provided (used) by investing activities:Net (purchases) sales of short-term investments - 604(100.0) 2,295(1,983)-Additions to property and equipment (80) (230)(65.2)(415) (658)(36.9)Proceeds from the sale of investment - 128(100.0) - 128(100.0)Purchases of EETC securities- (20) (100.0) - (96) (100.0)(Increase) decrease in restricted cash (b) (24) 32 -48491 431.9Proceeds from asset sale leaseback215 - -274 - -Proceeds from litigation on advance deposits- - - 41 - -Proceeds from the sale of property and equipment51 5NM 9419 394.7Other, net (17)(22)(22.7) (52)(61)(14.8) 145 497 (70.8) 2,721(2,560)-Cash flows provided (used) by financing activities:Repayment of Credit Facility-(500) (100.0) (18) (1,495)(98.8)Repayment of other debt (128) (108) 18.5 (666) (1,257)(47.0)Special distribution - - - (253)- -Principal payments under capital leases(26) (117)(77.8)(235) (177) 32.8Decrease in capital lease deposits180 (98.8) 1558093.8Increase (decrease) in deferred financing costs(2)4 - (120)(18) NMProceeds from issuance of secured notes- - -337 694 (51.4)Proceeds from the sale of stock107 - -107 - -Other, net - 8(100.0)(9) 26 - (48) (633)(92.4)(702) (2,147)(67.3)Increase (decrease) in cash and cash equivalents during the period (892) (4) NM780(2,573)-Cash and cash equivalents at beginning of the period2,931 1,263 132.11,259 3,832 (67.1)Cash and cash equivalents at end of the period $2,039$1,25962.0 $2,039$1,25962.0Reconciliation of cash and cash equivalents to total cash and cashequivalents, short-term investments and restricted cash:As of December 31,Increase/ 20082007 (Decrease)Cash and cash equivalents $2,039$1,25962.0Short-term investments - 2,295(100.0)Restricted cash (b)272 756 (64.0)Total cash and cash equivalents, short-term investments and restricted cash (b)$2,311$4,310 (46.4)(a) See Note 5h for the Company's computation of free cash flow.(b) Restricted cash decreased significantly during the year endedDecember 31, 2008 due to the posting of letters of credit forworkers' compensation obligations and an amendment of the Company'slargest credit card processing agreement with respect to credit cardticket sales reserves.NMNot meaningful.CONSOLIDATED NOTES (UNAUDITED)(1) UAL Corporation ("UAL" or the "Company") is a holding company whoseprincipal subsidiary is United Air Lines, Inc.