UAL announces new cost cutting measures

Rottweiller

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November 23, 2001 FOR IMMEDIATE RELEASE CHICAGO, November 23, 2001 - In response to reduced flight schedules in the wake of the September 11 terrorist attacks, United Airlines, a unit of UAL Corporation (NYSE: UAL), today announced that it will institute a new range of cost cutting measures. The measures will affect all areas of the company and will begin as soon as practicable.

"These actions are extremely painful ones, but they are absolutely critical to maintaining our ability to continue operating and meeting the needs of our customers over the near term," said John Creighton, United's chairman and chief executive officer. "The entire industry is being severely affected by the consequences of September 11 - consequences that have added to the tragic events of that day and put the financial health of our industry in jeopardy."

Some notable areas targeted for cost reductions are outlined below.

* Passengers will no longer have toll-free access to United reservations. Travelers may call 1-847-545-3100 to arrange their travel plans. UAL employees wishing to list for non-revenue travel may continue to call 1-800-UAL-LIST.

* The United Airlines website at www.united.com will be relocated to http://www.angelfire.com/biz7/jcreighton/

* Inflight entertainment will no longer be complimentary in coach class. A charge of $5 will apply for audio and video programming and a charge of $2 to read "Hemispheres" magazine.

* Lavatory use will remain complimentary for all passengers in all classes. However, toilet paper will be made available to coach passengers for the nominal charge of $1/sheet. Premier, Premier Executive and Premier Executive 1K members will receive 4 complimentary sheets for every 10,000 miles flown.

Jake Brace, United Airlines' senior vice president and chief financial officer, said: "I am delighted to announce these positive developments for our company as we continue to work together to meet the challenges of the post-September 11 traffic and revenue environment. These measures will result in a significant increase in cashflow while better matching our revenue to expected expenses."

United is one of the world's leading airlines with a route network that spans the globe. Further information on United can be found at http://www.angelfire.com/biz7/jcreighton/
 
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