UAL CORPORATION EXPECTS LOWER THIRD-QUARTER EARNINGS
The company expects third quarter 2000 earnings per share to be
below the previously announced $2.60 to $3.20 range.
CHICAGO, Aug. 17, 2000 -- UAL Corporation (NYSE: UAL), the
holding company whose primary subsidiary is United Airlines, today
announced that it expects third-quarter earnings per share to be lower
than the $2.60 to $3.20 range it announced on July 19, 2000.
Speaking to the situation, Chairman and Chief Executive Officer
James E. Goodwin said, "Although booking patterns remained strong
through early August despite poor operating performance, booking
levels have since fallen on the adverse publicity surrounding the
cancellations that occurred in early August. While our operating
performance has improved somewhat, the reduced booking levels
continue, and as a result, revenues are not as strong as we had
previously anticipated. Furthermore, the uncertainty surrounding the
variable nature of factors affecting the situation, such as labor
relations, crew-related issues and weather, preclude us from
confidently projecting results at this point for the quarter or the
full year."
"We are focused and committed to resolving the causes of this
difficult operating situation that has not only greatly inconvenienced
our customers but many of our employees as well."
Safe Harbor Statement under the Private Securities Litigation Reform
Act of 1995: The information contained in this press release is
forward-looking and involves risks and uncertainties that could result
in actual results differing materially from expected results. Forward-looking
statements represent the company's expectations and beliefs
concerning future events, based on information available to the
company as of the date of this press release.
Some factors that could significantly impact revenues and
earnings per share include, without limitation: the results of union
contract negotiations and their impact on labor costs and operations;
operational disruptions as a result of bad weather, air traffic
control-related difficulties and the impact of labor issues; the
willingness of passengers to fly; the airline pricing environment;
competitors' route decisions; the implementation and success of
customer service improvement strategies; actions of the U.S., foreign
and local governments; the stability of the U.S. economy; 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
