This summary is based on the third quarter fiscal 2007 earnings call conducted by UAL Corporation (UAUA) on October 23, 2007.

Management:

Chairman, President and CEO: Glenn F. Tilton
VP - IR: Kathryn A. Mikells
EVP and CFO: Frederic F. Brace
EVP and Chief Revenue Officer: John P. Tague
EVP and Chief Customer Officer: Graham W. Atkinson

Key Investors Issues

- EPS were $2.21 a share compared to $1.30 a share last year.
- Net income was $334 million, up from last year''s $190 million.
- Sales rose nearly 7% to $5.5 billion, also topping Wall Street targets of $5.36 billion.

Third Quarter Highlights

The company reported a pre-tax net profit, excluding special items, of nearly $0.5 billion, well over twice the pre-tax profit reported a year ago.

- Net income, excluding special items, was $295 million, increasing by some $132 million, 81% higher than the quarter a year ago, in spite of fuel at around $75 a barrel and a tax rate that was 17 points higher year-over-year.
- Both operating revenues and expenses had special items associated with them this quarter, the effect of which was an increase in GAAP pre-ax net income

- Passenger revenue performance was among the best in the industry, with mainline passenger unit revenue, excluding special items, increasing by 9.7% compared to the third quarter of last year.
- Third quarter CASM was impacted by a non-cash charge for surplus and obsolete maintenance inventory and increased accrued expense for profit-sharing programs that would be paid out to all employees and have been driven by the improved revenue expectations.

Employees have earned over $100 million in profit sharing year-to-date.

Actual payouts will depend on fourth quarter performance.

Operating profit, excluding special items, was $589 million, almost double that of the previous year.

- With an operating margin of 10.7%, the company improved upon the strong margins achieved last quarter.
- In addition, the company generated operating cash flow of $342 million, $211 million higher than a year ago.
- Strong cash flow distinctive to United flow allows reinvesting in the business, reduce debt, and consider shareholder-friendly options.

The company had a one-time non-cash credit to passenger revenue of $45 million related to the final resolution of certain administrative claims from restructuring.

The company had $22 million in restructuring-related cost reduction.

Net profit is after applying a tax rate of 41%.

This tax rate was a couple of points higher than the rate used to develop the consensus, this means that outperformance of consensus was greater than it would appear at first flush.

- In the third quarter of 2006, the company had a tax rate of 24%. The third quarter of last year was the first time the company booked a tax expense since emergence. That expense was based on year-to-date pre-tax income and resulted in a lower effective tax rate. With that being said, despite the large increase in the tax rate, net income grew by $132 million or 81% year-over-year.
- Tax expense should be viewed primarily as a non-cash item. Due to large NOL balance, the company anticipates paying only minimal cash taxes for the foreseeable future.

The impact of Mileage Plus accounting was modest.

- The fresh-start accounting methodology cost $35 million in revenue versus the previous method, which was more than offset by a $50 million revenue benefit from the change to the expiration period for miles from 36 to 18 months.
- Net-net, the effect of Mileage Plus accounting changes resulted in passenger revenues increasing by $15 million.
- On a year-over-year basis, these accounting changes resulted in revenues increasing by $32 million. Passenger unit revenues came in above guidance.
- The company had the one-time special credit to passenger revenue of $45 million. September core revenue performance was stronger than expected, higher by approximately $50 million.

Cargo and other revenue of $438 million came in above the top end of guidance.