United Announces Third-Quarter 2013 Profit

Third-Quarter Costs
Total operating expenses increased $11 million, or 0.1 percent, in the third quarter versus the same period in 2012. Excluding special charges, third-quarter total operating expenses increased $314 million, or 3.4 percent, year-over-year.

Third-quarter consolidated CASM increased 1.2 percent year-over-year. Third-quarter consolidated CASM, excluding special charges and third-party business expense, increased 2.9 percent compared to third-quarter 2012. Third-party business expense was $205 million in the third quarter of 2013.

In the third quarter, consolidated CASM, excluding special charges and third-party business expense and holding fuel rate and profit sharing constant, increased 3.6 percent compared to the third quarter of 2012.

"We are committed to operating more efficiently across all aspects of our business," said John Rainey, UAL's executive vice president and chief financial officer. "We continue to improve our balance sheet and to make return-driven investments in our business, both of which are critical to creating long-term economic value for our stakeholders."

Liquidity and Cash Flow
UAL ended the third quarter with $6.7 billion in unrestricted liquidity, including $1.0 billion of undrawn commitments under its revolving credit facility. During the third quarter, UAL generated $237 million of operating cash flow. The company's gross capital expenditures and purchase deposits for the quarter were $598 million, and the company made debt and capital lease principal payments of $253 million in the third quarter.

Third-Quarter 2013 Accomplishments
Operations, Co-workers and Customer Service

• United Airlines reported a third-quarter mainline on-time arrival rate (domestic and international) of 78.9 percent. The on-time arrival rate is based on flights arriving within 14 minutes of scheduled arrival time. United co-workers earned cash-incentive payments of $9 million for on-time performance during the third quarter.
• The company reached tentative agreements on new joint collective bargaining agreements with the International Association of Machinists (IAM) for the more than 28,000 fleet service, passenger service and storekeeper employees.
• United's pilots established an integrated seniority list, and United announced it offered recall to nearly 600 pilots currently on furlough to address the airline's future staffing needs.
• United neared completion of its comprehensive customer service training program for all customer-facing co-workers worldwide with more than 90 percent of mainline and United Express flight attendants, airport agents and reservation agents trained through the third quarter.

Network, Fleet and Sustainability

• In the third quarter, the company announced it is expanding its leading worldwide route network and will launch future nonstop service from San Francisco to Chengdu, China, the fourth-largest Chinese city, and from Chicago to Edinburgh, Scotland, beginning in June 2014. This quarter, United launched new nonstop service to St. Lucia, as well as additional nonstop service to Anchorage, Alaska; Austin, Texas; Traverse City, Mich.; and Saskatoon, Saskatchewan, Canada. The company also announced it is adding three other cities to its network: Elmira, N.Y., Topeka, Kan.; and Sun Valley, Idaho, as well as additional service to Fort Myers, Fla.; Hayden, Colo.; Indianapolis; and State College, Pa.
• The company took delivery of seven new highly efficient aircraft, including six Boeing 737-900ERs and one Boeing 787 Dreamliner, and removed from service seven Boeing 757-200s.
• A United Boeing 737-800 aircraft retrofitted with the new Split Scimitar Winglet began test flights. United is the North American launch customer for the Next-Generation 737 advanced winglet that improves the efficiency of the company's 737 fleet by approximately2 percent while simultaneously reducing carbon emissions, and the company will begin installing the new winglets across its 737 fleet by year end.
• United was named the Eco-Aviation "Airline of the Year" Gold Winner by Air Transport World (ATW) magazine.

Product, Loyalty Program and Facilities

• United debuted its new brand campaign, featuring its iconic "Fly the Friendly Skies" tagline, reinterpreted for today's travelers. The new campaign explains United's commitment to being "user-friendly," which to customers today means the combination of service, technology and product enhancements.
• The company continued outfitting aircraft with global satellite Wi-Fi across its entire mainline fleet, offering inflight connectivity on long-haul international flights. The airline now has more than 115 Wi-Fi-equipped aircraft and is outfitting about one aircraft per day with global satellite Wi-Fi.
• The airline expanded its offering of live television to more than 200 aircraft, offering customers more than 100 channels of live programming while in-flight. United operates more live television-equipped aircraft than any other airline in the world.
• United released refreshed applications for iPhone, Android and BlackBerry 10 that include streamlined user interfaces along with a new feature that enables customers to manage their travel in real time if a flight delay or cancellation should occur.
• United continued retrofitting its p.s. (Premium Service) transcontinental aircraft that fly from New York to Los Angeles and San Francisco. The airline already has retrofitted 12 of its 15 p.s. aircraft with the latest cabin interiors, premium-cabin flat-bed seats, and personal on-demand entertainment and Wi-Fi throughout the aircraft.
• United debuted its Choice Menu "Bistro on Board" featuring new fresh food menu options available for sale to Economy customers on flights longer than three-and-a-half hours within North America and to and from Central America. United is providing customers innovative selections made with high-quality ingredients that will change seasonally.
• United MileagePlus and Marriott Rewards joined forces to provide their most loyal members with unprecedented travel benefits. Through the RewardsPlus program, United customers who are Premier Gold MileagePlus members or above can enjoy Marriott Gold Elite status and benefits. The program also offers Marriott Rewards Platinum Elite members MileagePlus Premier Silver status.
• The company teamed up with Mercedes-Benz USA to provide innovative new benefits exclusively to United's most frequent flyers seeking a luxury driving experience. MileagePlus Premier members receive incentives and 25,000 bonus miles when purchasing or leasing certain new Mercedes-Benz vehicles. In addition, United and Mercedes partnered to offer United's Global Services customers tarmac transfer service at the airline's Chicago and Houston hubs.
• The company opened its new United Club lounge in Terminal 2 at San Diego International Airport, the third club to feature the airline's new design concept.

About United
United Airlines and United Express operate an average of more than 5,300 flights a day to more than 360 airports across six continents. In 2012, United and United Express carried more passenger traffic than any other airline in the world and operated nearly two million flights carrying 140 million customers. United is investing in upgrading its onboard products and now offers more flat-bed seats in its premium cabins and more extra-legroom, economy-class seating than any airline in North America. In 2013, United became the first U.S.-based international carrier to offer satellite-based Wi-Fi on long-haul overseas routes. The airline also features DIRECTV on more than 200 aircraft, offering customers more live television access than any other airline in the world. United operates nearly 700 mainline aircraft and has made large-scale investments in its fleet. In 2013, United continues to modernize its fleet by taking delivery of more than two dozen new Boeing aircraft. The company will have launched 14 new international and 19 new domestic routes, including the addition of seven new cities to its network, by the end of 2013.Business Traveler magazine awarded United Best Airline for North American Travel for 2012, and readers of Global Traveler magazine have voted United's MileagePlus program the best frequent flyer program for nine consecutive years. According to the 4 th annual Switchfly Reward Seat Availability Survey published by IdeaWorksCompany in May 2013, United has the most saver-style award-seat availability among the largest U.S. global airlines. Air Transport World named United as the Eco-Aviation Airline of the Year Gold Winner in 2013. United is a founding member of Star Alliance, which provides service to 195 countries via 28 member airlines. More than 85,000 United employees reside in every U.S. state and in countries around the world.For more information, visit united.com or follow United on Twitter and Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the NYSE under the symbol UAL.

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 that 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 report are based upon information available to us on the date of this report. 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, except as required by applicable law. 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 various financing arrangements; the costs and availability of financing; our ability to maintain adequate liquidity; our ability to execute our operational plans, including optimizing our revenue; 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 that global economic conditions have on customer travel patterns; excessive taxation and the inability to offset future taxable income; general economic conditions (including interest rates, foreign currency exchange rates, investment or credit market conditions, crude oil prices, costs of aircraft fuel and energy refining capacity in relevant markets); our ability to cost-effectively hedge against increases in the price of aircraft 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 and other insurance; industry consolidation or changes in airline alliances; competitive pressures on pricing and on demand; our capacity decisions and the capacity decisions of our competitors; U.S. or foreign governmental legislation, regulation and other actions (including open skies agreements and environmental regulations); 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; the possibility that expected merger synergies will not be realized or will not be realized within the expected time period; and other risks and uncertainties set forth under Item 1A, Risk Factors, of UAL's Annual Report on Form 10-K, as well as other risks and uncertainties set forth from time to time in the reports we file with the SEC.

-tables attached-

UNITED CONTINENTAL HOLDINGS, INC.
STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)
		Three Months Ended						Nine Months Ended
		September 30,				%		September 30,				%
(In millions, except per share data)		2013		2012		Increase/ (Decrease)		2013		2012		Increase/ (Decrease)
Operating revenue:
Passenger:
Mainline		$7,025		$6,993		0.5		$19,792		$19,891		(0.5)
Regional		1,893		1,781		6.3		5,353		5,159		3.8
Total passenger revenue		8,918		8,774		1.6		25,145		25,050		0.4
Cargo		199		246		(19.1)		662		775		(14.6)
Other		1,111		889		25.0		3,143		2,625		19.7
Total operating revenue		10,228		9,909		3.2		28,950		28,450		1.8
Operating expenses:
Aircraft fuel (A)		3,262		3,406		(4.2)		9,380		10,043		(6.6)
Salaries and related costs		2,209		2,038		8.4		6,511		5,959		9.3
Regional capacity purchase (B)		621		628		(1.1)		1,837		1,887		(2.6)
Landing fees and other rent		540		504		7.1		1,544		1,476		4.6
Aircraft maintenance materials and outside repairs		472		469		0.6		1,390		1,308		6.3
Depreciation and amortization		435		379		14.8		1,268		1,137		11.5
Distribution expenses		377		356		5.9		1,052		1,038		1.3
Aircraft rent		231		245		(5.7)		706		747		(5.5)
Special charges (C)		211		514		NM		355		884		NM
Other operating expenses		1,362		1,170		16.4		3,893		3,467		12.3
Total operating expenses		9,720		9,709		0.1		27,936		27,946		-
Operating income		508		200		154.0		1,014		504		101.2
Nonoperating income (expense):
Interest expense		(195)		(202)		(3.5)		(590)		(631)		(6.5)
Interest capitalized		12		9		33.3		35		26		34.6
Interest income		5		4		25.0		16		16		-
Miscellaneous, net		52		4		NM		(48)		(7)		NM
Total nonoperating expense		(126)		(185)		(31.9)		(587)		(596)		(1.5)
Income (loss) before income taxes		382		15		NM		427		(92)		NM
Income tax expense (benefit) (D)		3		9		(66.7)		(4)		11		NM
Net Income (loss)		$379		$6		NM		$431		$(103)		NM
Earnings (loss) per share, basic		$1.06		$0.02		NM		$1.25		$(0.31)		NM
Earnings (loss) per share, diluted		$0.98		$0.02		NM		$1.15		$(0.31)		NM
Weighted average shares, basic		357		331		7.9		343		331		3.6
Weighted average shares, diluted		395		332		19.0		390		331		17.8
NM Not meaningful

UNITED CONTINENTAL HOLDINGS, INC.

NOTES (UNAUDITED)

UAL's results of operations include fuel expense for both mainline and regional operations.

(A)

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