This summary is based on the fourth quarter fiscal 2006 earnings call conducted by United Airline Corp. (UAUA: chart) on January 23, 2007.

Management:

- Chairman, President and CEO: Glenn Tilton
- Chief Financial Officer: Jack Brace
- Chief Operational Officer: Peter McDonald
- Chief Revenue Officer: John Tague
- EVP, Customer Experience: Graham Atkinson.
- Investor Relations: Robert Sahadevan.

Key Investors Issues

- The firm reported a net loss of $61 million or 55 cents a share from a loss of $16.9 billion or $145.47 a share.
- Revenue was up 5% to $4.6 billion.
- Mainline RASM excluding revenue from UAFC, the fuel-trading subsidiary, grew by 3.3%.

Full Year Highlights:

- For the eleven months ended December 31, 2006, since its emergence from bankruptcy reorganization, the company reported net income of $25 million.
- Unadjusted mainline PRASM increased by 9.1% and unadjusted consolidated RASM increased by 8.4%.

Fourth Quarter Highlights

The firm reported a net loss of $61 million or 55 cents a share from a loss of $16.9 billion or $145.47 a share on revenue growth and cost control, excluding reorganization in special items.

- The airliner recorded an operating profit of $23 million, an improvement of more than $200 million, from an operating loss of $182 million in 2005.
- Results were impacted by three major winter storms in December which resulted in significant flight cancellations.

At the beginning of December, Ohio was hit by the first major storm resulting in the cancellation of 900 flights.

- Just before Christmas the extraordinary closure of the second largest hub at Denver International airport for over two days resulted in the cancellation of 28,00 flights.
- Denver was hit by a second storm just prior to the end of the year that resulted in the cancellation of an additional 200 flights.
- These storms reduced mainline and consolidated capacity by six-tenths of a percent, reducing revenue by $40 million.

During the period, the company entered into an exercise fuel hedges that were classified as economic hedges and recognized a loss on the hedges of $13 million and an unrealized mark-to-market loss of $2 million for hedges that will settle in 2007.

- Mainline unit earnings to 7 cents from a negative 28 cents a year ago, while mainline unit earnings excluding fuel expense were up 8% to 3,29 cents.
- Regional affiliate operations essentially broke even in the quarter which was an $81 million improvement from the prior year.
- Consolidated PRASM increased by 3.7% and mainline PRASM grew by 3.4% with the year-over-year increase in mainline yield of 3.6% and the mainline traffic increase of 1.3% on a 1.5% increase in capacity.

Total revenues increased 5% or $200 million to $4.6 billion from $4.3 billion in the prior year due to solid demand.

- Results from the company''s regional affiliate operations continued to improve as revenue from regional affiliates grew by 14%, a result of growth and network optimization.
- Mainline RASM excluding revenue from UAFC, the fuel-trading subsidiary, grew by 3.3%.
- Revenue performance was particularly strong in international markets with Pacific PRASM up 6%, the Atlantic had a 7% increase, and Latin America had a 13%

Domestic mainline capacity increased 1.5%, despite the capacity growth the effective tougher year-over-year comps and effective of three winter storms, which mainly affected domestic revenue, domestic mainline PRASM grew 1.1%.

- Regional capacity grew by 14% as compared to the year-ago quarter, despite an express passenger length of haul increase of 9%.
- Regional PRASM growth was flat driven by 1.7% decrease in yield and a 1.3-point increase in load factor compared with the prior year primarily due to a decline in other revenue driven by lower revenue from UAFC, mainline RASM increased only 1.5%.
- Total operating expenses were essentially flat year-over-year, with lower year-over-year fuel expense, including the cost of hedging as average mainline jet fuel price including taxes was $2.01 per gallon compared with $2.09 of last year.

Aircraft maintenance and outside repairs increased by $5 million, though this was lower than the prior quarters, largely driven by unusually high maintenance expenses in 2005 due to certain transition costs.