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UAL REPORTS FEBRUARY RESULTS
Unit Revenue Improves 12%, Company Continues to Meet DIP Covenants
Positive Cash Flow of $7 Million Per Day
CHICAGO, March 25, 2004 - UAL Corporation (OTCBB: UALAQ.OB), the holding company whose primary subsidiary is United Airlines, today filed its February Monthly Operating Report (MOR) with the United States Bankruptcy Court. The company reported a loss from operations of $112 million, which represents an improvement of approximately $195 million over February 2003. Mainline passenger unit revenue improved 12% year-over-year, well ahead of the industry average. The company reported a net loss of $259 million, including $119 million in reorganization expenses. The majority of reorganization expenses were non-cash items resulting from the rejection of aircraft as the company aligns its fleet with the market. UAL met the requirements of its debtor-in-possession (DIP) financing, including its trailing 12-month EBITDAR (earnings before interest, taxes, depreciation amortization and aircraft rent) covenants, for the thirteenth straight month.
"United continues to make steady progress in our restructuring," said Jake Brace, United's executive vice president and chief financial officer. "Our unit revenue was up 12%, our mainline unit costs for February improved 14% year-over-year, and we improved our cash position in February by more than $200 million, resulting in positive cash flow of $7 million a day."
UAL ended February with a cash balance of about $2.5 billion, which included $654 million in restricted cash (filing entities only). The cash balance increased $205 million during the month of February.
United, United Express and Ted operate more than 3,400 flights a day on a route network that spans the globe. News releases and other information about United may be found at the company's website at www.united.com.