United Airlines Significantly Reduces Planned New Aircraft Deliveries for 2002 and 2003

United Airlines (NYSE: UAL) announced today it has restructured its aircraft delivery program with both Boeing and Airbus Industrie, deferring deliveries of new aircraft for 2002 and 2003 from the 67 aircraft originally planned to 24 aircraft.

The airline said that it will take delivery of all 43 aircraft scheduled for 2001, the majority of which were delivered to United prior to September 11, 2001. However, it will only take delivery of 24 of 49 aircraft scheduled for the year 2002 and none of the 18 aircraft scheduled for the year 2003. The company noted that it has financing in place for the remaining 2001 and all 2002 aircraft.

At list prices, these actions will reduce United's outlays for aircraft by $2.5 billion during the 2002 and 2003 time period.

United also said it is now able to claim one of the world's youngest and most efficient operating fleets thanks to recent fleet retirements and the addition of new aircraft. The average age of United's operating fleet is 8.0 years as of November, 2001.

United's operating fleet is expected to total 543 aircraft at year-end 2001 and 567 aircraft at year-end 2002.

Separately, United announced a financial development related to the company's cash position which stood at $2.7 billion on October 31. As previously reported, United plans to add $1 billion of liquidity from a variety of sources during the fourth quarter. As part of this, United confirmed today that it has already added $600 million in incremental liquidity during November, further bolstering its strong cash position.

Jake Brace, United Airlines' senior vice president and chief financial officer, said: "I am delighted to announce these positive developments for our company as we continue to work together to meet the challenges of the post-September 11 traffic and revenue environment. Our agreements to defer aircraft deliveries in the critical 2002-2003 timeframe will result in a significant reduction in planned capital expenditures while better matching our capacity to expected demand."