UNITED AIRLINES TO FURLOUGH APPROXIMATELY 20,000 EMPLOYEES

In response to reduced flight schedules in the wake of the September 11 terrorist attacks, United Airlines, a unit of UAL Corporation (NYSE: UAL), has announced that it will furlough approximately 20,000 employees. The furloughs will affect all work groups of the company and will begin as soon as practicable.

"These actions are extremely painful ones, but they are absolutely critical to maintaining our ability to continue operating and meeting the needs of our customers over the near term," said James E. Goodwin, United's chairman and chief executive officer. "The entire industry is being severely affected by the consequences of September 11 - consequences that have added to the tragic events of that day and put the financial health of our industry in jeopardy."

Goodwin added: "While we continue to focus our attention on assisting the families of our passengers and employees who were victims of last Tuesday's attack, we must also focus on saving our company. We simply have no choice but to step up to the realities of this extraordinarily critical time and take drastic measures to preserve our viability and operations."

As previously announced, United's flight schedule has been reduced by 20 percent to approximately 1,900 daily flights.

Separately, United is also working alongside other North American carriers and officials from the Administration as well as members of the U.S. Congress on a relief package to address the unprecedented loss to the industry that directly resulted from last week's terrorist attack, as well as resulting liability issues that could force the industry into bankruptcy.

"Without this relief, the viability of the nation's air transportation system is in doubt. It is as serious and straightforward as that," said Goodwin. "As this nation continues to recover from this horrific act of war and as it continues to focus on minimizing the impact on the national economy, the airline industry's contributions to the U.S. gross domestic product and its ability to connect business and communities across the globe will be critical."