UAUA Ual Corp. (MM)

United Airlines today reported its preliminary consolidated traffic results for August 2010. Total consolidated revenue passenger miles (RPMs) increased in August by 2.5% on an increase of 1.7% in available seat miles (ASMs) compared with the same period in 2009. This resulted in a reported August consolidated passenger load factor of 86.7%, an increase of 0.6 points compared to 2009.

United reported a U.S. Department of Transportation on-time arrival rate of 85.0% in August.

For August 2010, consolidated passenger revenue per available seat mile (PRASM) is estimated to have increased 18.0% to 19.0% year-over-year. Consolidated PRASM for August 2010 compared to August 2008 is estimated to have increased 0.0% to 1.0%.

Average August 2010 mainline fuel price, including gains or losses on settled fuel hedges and excluding non-cash, mark-to-market fuel hedge gains and losses, is estimated to be $2.38 per gallon. Including non-cash, mark-to-market fuel hedge gains and losses, the estimated fuel price is $2.41 per gallon for the month.

About United

United Airlines, a wholly-owned subsidiary of UAL Corporation (Nasdaq: UAUA), operates approximately 3,400* flights a day on United and United Express to more than 230 U.S. domestic and international destinations from its hubs in Los Angeles, San Francisco, Denver, Chicago and Washington, D.C. With key global air rights in the Asia-Pacific region, Europe and Latin America, United is one of the largest international carriers based in the United States. United also is a founding member of Star Alliance, which provides connections for our customers to 1,172 destinations in 181 countries worldwide. United's 46,000 employees reside in every U.S. state and in many countries around the world. United ranked No. 1 in on-time performance for domestic scheduled flights for 2009 among America’s five largest global carriers, as measured by the Department of Transportation and published in the Air Travel Consumer Report for 2009. News releases and other information about United can be found at the company's Web site at united.com. Follow United on Twitter @UnitedAirlines, and become a fan on Facebook by visiting facebook.com/unitedairlines.

*Based on United's forward-looking flight schedule for July 2010 to June 2011.

REVENUE PASSENGER MILES (‘000)**               August 2010   August 2009   Change North America 5,446,709 5,579,224 -2.4 %   Pacific 2,140,708 2,022,008 5.9 % Atlantic 1,892,259 1,833,490 3.2 % Latin America

280,244

268,443

4.4

%

Total International 4,313,211 4,123,941 4.6 %   Total Mainline 9,759,920 9,703,165 0.6 %   Regional Affiliates 1,539,918 1,322,498 16.4 %   Total Consolidated 11,299,838 11,025,663 2.5 %   AVAILABLE SEAT MILES (‘000)**               North America 6,139,321 6,347,059 -3.3 %   Pacific 2,424,593 2,390,979 1.4 % Atlantic 2,218,348 2,071,121 7.1 % Latin America

345,648

324,440

6.5

%

Total International 4,988,589 4,786,540 4.2 %   Total Mainline 11,127,910 11,133,599 -0.1 %   Regional Affiliates 1,900,586 1,671,057 13.7 %   Total Consolidated 13,028,496 12,804,656 1.7 %   LOAD FACTOR**               North America 88.7 % 87.9 % 0.8 pts   Pacific 88.3 % 84.6 % 3.7 pts Atlantic 85.3 % 88.5 % -3.2 pts Latin America

81.1

%

82.7

%

-1.6 pts Total International 86.5 % 86.2 % 0.3 pts   Total Mainline 87.7 % 87.2 % 0.5 pts   Regional Affiliates 81.0 % 79.1 % 1.9 pts   Total Consolidated 86.7 % 86.1 % 0.6 pts   REVENUE PASSENGERS BOARDED (‘000)**               Mainline 5,057 5,330 -5.1 % Regional Affiliates

2,638

2,363

11.6

%

Total Consolidated 7,695 7,693 0.0 %   CARGO TON MILES (‘000)**               Freight 136,073 116,234 17.1 % Mail

12,311

14,404

-14.5

%

Total Mainline 148,384 130,638 13.6 %  

** Includes Scheduled and Charter Operations. Regional Affiliates results only reflect flights operated under capacity purchase agreements and flights operated as part of our joint venture with Aer Lingus.

REVENUE PASSENGER MILES (‘000)**           QTD August 2010   QTD August 2009   Change North America 10,907,860 11,278,385 -3.3 %   Pacific 4,250,828 4,037,345 5.3 % Atlantic 3,842,490 3,662,590 4.9 % Latin America

588,716

540,210

9.0

%

Total International 8,682,034 8,240,145 5.4 %   Total Mainline 19,589,894 19,518,530 0.4 %   Regional Affiliates 3,099,330 2,659,049 16.6 %   Total Consolidated 22,689,224 22,177,579 2.3 %   AVAILABLE SEAT MILES (‘000)**           North America 12,290,975 12,759,227 -3.7 %   Pacific 4,853,415 4,797,559 1.2 % Atlantic 4,442,603 4,135,373 7.4 % Latin America

715,727

639,639

11.9

%

Total International 10,011,745 9,572,571 4.6 %   Total Mainline 22,302,720 22,331,798 -0.1 %   Regional Affiliates 3,789,531 3,309,812 14.5 %   Total Consolidated 26,092,251 25,641,610 1.8 %   LOAD FACTOR**           North America 88.7 % 88.4 % 0.3 pts   Pacific 87.6 % 84.2 % 3.4 pts Atlantic 86.5 % 88.6 % -2.1 pts Latin America

82.3

%

84.5

%

-2.2 pts Total International 86.7 % 86.1 % 0.6 pts   Total Mainline 87.8 % 87.4 % 0.4 pts   Regional Affiliates 81.8 % 80.3 % 1.5 pts   Total Consolidated 87.0 % 86.5 % 0.5 pts   REVENUE PASSENGERS BOARDED (‘000)**           Mainline 10,122 10,754 -5.9 % Regional Affiliates

5,295

4,765

11.1

%

Total Consolidated 15,417 15,519 -0.7 %   CARGO TON MILES (‘000)**       Freight 277,674 233,142 19.1 % Mail

25,957

29,524

-12.1

%

Total Mainline 303,631 262,666 15.6 %  

**Includes Scheduled and Charter Operations. Regional Affiliates results only reflect flights operated under capacity purchase agreements and flights operated as part of our joint venture with Aer Lingus.

REVENUE PASSENGER MILES (‘000)**           YTD August 2010   YTD August 2009   Change North America 38,822,521 39,926,813 -2.8%   Pacific 15,290,781 14,298,432 6.9% Atlantic 12,517,553 12,021,353 4.1% Latin America

2,243,504

2,170,885

3.3%

Total International 30,051,838 28,490,670 5.5%   Total Mainline 68,874,359 68,417,483 0.7%   Regional Affiliates 10,940,888 9,069,084 20.6%   Total Consolidated 79,815,247 77,486,567 3.0%   AVAILABLE SEAT MILES (‘000)**           North America 45,451,142 47,388,281 -4.1%   Pacific 18,040,843 18,629,747 -3.2% Atlantic 15,213,036 15,023,330 1.3% Latin America

2,800,332

2,843,374

-1.5%

Total International 36,054,211 36,496,451 -1.2%   Total Mainline 81,505,353 83,884,732 -2.8%   Regional Affiliates 13,899,765 11,809,120 17.7%   Total Consolidated 95,405,118 95,693,852 -0.3%   LOAD FACTOR**           North America 85.4% 84.3% 1.1 pts   Pacific 84.8% 76.8% 8.0 pts Atlantic 82.3% 80.0% 2.3 pts Latin America

80.1%

76.3%

3.8 pts Total International 83.4% 78.1% 5.3 pts   Total Mainline 84.5% 81.6% 2.9 pts   Regional Affiliates 78.7% 76.8% 1.9 pts   Total Consolidated 83.7% 81.0% 2.7 pts   REVENUE PASSENGERS BOARDED (‘000)**           Mainline 36,528 38,508 -5.1% Regional Affiliates

19,031

16,743

13.7%

Total Consolidated 55,559 55,251 0.6%   CARGO TON MILES (‘000)**       Freight 1,155,686 851,820 35.7% Mail

117,955

130,595

-9.7%

Total Mainline 1,273,641 982,415 29.6%  

**Includes Scheduled and Charter Operations. Regional Affiliates results only reflect flights operated under capacity purchase agreements and flights operated as part of our joint venture with Aer Lingus.

GAAP To Non-GAAP Reconciliations

Pursuant to SEC Regulation G, the Company has included the following reconciliation of reported non-GAAP financial measures to comparable financial measures reported on a GAAP basis. Since the Company did not apply cash flow hedge accounting prior to April 1, 2010, the Company believes that the net fuel hedge adjustments provide management and investors with a better perspective of its performance and comparison to its peers because the adjustments reflect the economic fuel cost during the periods presented and many of our peers apply cash flow hedge accounting. The non-cash mark-to-market gain/loss adjustment includes the reversal of prior period non-cash mark-to-market gain/loss related to August hedge settlements.

 

August 2010

Mainline fuel price per gallon excluding non-cash, net mark-to-market gains and losses $2.38 Add: Non-cash, net mark-to-market (gains) and losses per gallon

0.03

Mainline fuel price per gallon $2.41  

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements included in this release are forward-looking and thus reflect our current expectations and beliefs with respect to certain current and future events and financial performance. Such forward-looking statements are and will be subject to many risks and uncertainties relating to our operations and business environment that may cause actual results to differ materially from any future results expressed or implied in such forward-looking statements. Words such as “expects,” “will,” “plans,” “anticipates,” “indicates,” “believes,” “forecast,” “guidance,” “outlook” and similar expressions are intended to identify forward-looking statements. Additionally, forward-looking statements include statements which do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this release are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise. Our actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the following: our ability to comply with the terms of our amended credit facility and other financing arrangements; the costs and availability of financing; our ability to maintain adequate liquidity; our ability to execute our operational plans; our ability to control our costs, including realizing benefits from our resource optimization efforts, cost reduction initiatives and fleet replacement programs; our ability to utilize our net operating losses; our ability to attract and retain customers; demand for transportation in the markets in which we operate; an outbreak of a disease that affects travel demand or travel behavior; demand for travel and the impact the economic recession has on customer travel patterns; the increasing reliance on enhanced video-conferencing and other technology as a means of conducting virtual meetings; general economic conditions (including interest rates, foreign currency exchange rates, investment or credit market conditions, crude oil prices, costs of aviation fuel and energy refining capacity in relevant markets); our ability to cost-effectively hedge against increases in the price of aviation fuel; any potential realized or unrealized gains or losses related to fuel or currency hedging programs; the effects of any hostilities, act of war or terrorist attack; the ability of other air carriers with whom we have alliances or partnerships to provide the services contemplated by the respective arrangements with such carriers; the costs and availability of aviation or other insurance; the costs associated with security measures and practices; industry consolidation; competitive pressures on pricing and on demand; capacity decisions of United and/or our competitors; U.S. or foreign governmental legislation, regulation and other actions (including open skies agreements); labor costs; our ability to maintain satisfactory labor relations and the results of the collective bargaining agreement process with our union groups; any disruptions to operations due to any potential actions by our labor groups; weather conditions; our ability to complete the planned merger with Continental Airlines, Inc.; and other risks and uncertainties set forth under the caption “Risk Factors” in Item 1A. of the 2009 Annual Report, as well as other risks and uncertainties set forth from time to time in the reports we file with the U.S. Securities and Exchange Commission (“SEC”). Consequently, forward-looking statements should not be regarded as representations or warranties by UAL Corporation or United that such matters will be realized.