Exhibit 99.2
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Corporate Communications Contact:
Media Relations (847) 700-5538
Investor Relations Contact:
Patricia Chaplinski (847) 700-7501
UAL CORPORATION EXPECTS TO POST A LOSS IN THE THIRD QUARTER
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CHICAGO, Sept. 29, 2000 -- UAL Corporation (NYSE: UAL), the
holding company whose primary subsidiary is United Airlines,
today announced that it expects to post a loss for the third
quarter.
"The third quarter has been a difficult period for United,"
said James E. Goodwin, UAL Corporation Chairman and Chief
Executive Officer. "The disruptions to our operations throughout
the quarter greatly inconvenienced our customers and front-line
employees, reducing revenues significantly. On the cost side,
while we are pleased that we were able to reach a tentative pilot
contract, the financial implications of the agreement, coupled
with the higher price of jet fuel, will further impact our
results. Therefore, we expect to post a loss in the third
quarter and probably in the fourth quarter as well."
The company experienced an abnormally high level of delays
and cancellations throughout the peak travel season. In
response, it adjusted its schedule to reduce the inconvenience
caused by the disruptions to its customers and front-line
employees, and this, combined with the effect of the disruptions
themselves, had a significant effect on revenues.
Affecting the company's costs are the recent tentative pilot
contract agreement and the higher cost of jet fuel. The cost of
the tentative pilot agreement, as well as the expected impact of
other labor agreements which the company is now negotiating, will
be greater than originally anticipated. The higher price of fuel
is also a cost factor. The company has a hedge program in place
against crude oil cost increases for the year. However, the cost
of jet fuel has risen at a higher rate than the cost of crude oil,
and this will affect the company's costs for the quarter.
"While the quarter's events are negatively impacting our
financial performance," Goodwin commented, "we are making every
effort to improve our operations and restore our customers'
confidence in United. We believe that these efforts will help us
return to profitability. I'd like to take this opportunity to
thank our customers for their understanding and our front-line
employees for their dedication under extreme circumstances."
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A summary of the material terms of the tentative United-ALPA 2000
contract agreement will be available today on united.com.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: The information contained in the outlook
section of this press release is forward looking and involves
risks and uncertainties that could result in actual results
differing materially from expected results. Some factors that
could significantly impact revenues and costs include, without
limitation: the airline pricing environment; industry capacity
decisions; competitors' route decisions; the success of the
company's cost control efforts; the cost of crude oil and jet
fuel; the success of fuel hedging strategies; the results of
union contract negotiation and ratification processes and their
impact on labor costs; operational disruptions as a result of bad
weather, air traffic control-related difficulties and the impact
of labor issues; the growth of e-commerce and off-tariff
distribution channels; the implementation of customer service
improvement strategies; actions of the U.S., foreign and local
governments; foreign currency exchange rate fluctuations; the
Pacific economic environment and travel patterns; the stability
of the U.S. economy; inflation; the economic environment of the
airline industry and the economic environment in general.
- UAL -
The web-page address for UAL Corp. and United Airlines is
united.com
