UAL CORPORATION REPORTS YEAR-OVER-YEAR
PRE-TAX INCOME GROWTH OF 127%
FOR THE THIRD QUARTER OF 2007


CHICAGO, October 23, 2007 UAL Corporation

(NASDAQ: UAUA), the holding
company whose primary subsidiary is United Airlines, reported pre-tax income of $565
million for the third quarter ended September 30, 2007. Pre-tax income, excluding
special items, was $498 million, $279 million or 127 percent higher than the same
period in 2006. The company:
Reported basic and diluted earnings per share (EPS) of $2.82 and $2.21
respectively. Excluding special items, basic and diluted EPS were $2.49 and
$1.96 respectively. Diluted EPS excluding special items increased 75 percent
versus last year.
Increased year-over-year mainline passenger unit revenue by 10.6 percent
and by 9.7 percent excluding special items through its capacity discipline and
aggressive revenue management.
Continued its focus on controlling costs, with operating expenses increasing
only 0.6 percent versus the prior year.
Generated operating cash flow of $342 million, a 161 percent year-over-year
improvement. Maintained a cash and short-term investments balance of $5.0
billion at September 30, 2007, including $788 million of restricted cash,
despite debt reductions during the quarter.
Strengthened its balance sheet by reducing total debt by $210 million during
the quarter.
Was awarded a new direct route to China, making United the first U.S. carrier
to offer daily, nonstop service between San Francisco and Guangzhou.
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Earnings Growth Driven by Strong Revenue Performance
UAL generated operating earnings of $656 million in the third quarter of 2007.
Operating earnings, excluding special items, grew to $589 million, a year-over-year
improvement of 93 percent, resulting in an operating margin of 10.7 percent. The
company had pre-tax income, excluding special items, of $498 million, 127 percent
higher than the same period last year resulting in a pre-tax margin of 9.0 percent for the
third quarter of 2007, more than double the margin in the comparable period last year.
Despite a tax rate that was 17 points higher year-over-year, net income for the third
quarter of 2007, excluding special items, increased by 81 percent or $132 million to
$295 million.

The companys strong third quarter earnings improvement was fueled by
passenger unit revenue growth that was among the best in the industry. United
continued to generate strong operating cash flow growth of $211 million or 161 percent
year-over-year.

We delivered excellent results this quarter driven by fundamental improvements
across our core business, said Glenn Tilton, chairman, president and CEO. The work
of the management team and our employees across the company is building on the
momentum from our second quarter which enabled us to outperform our domestic
peers.

Operating expenses increased by $30 million, and excluding special items,
increased by $22 million, or approximately 0.5 percent year-over-year driven mainly by
regional affiliate expense, increased aircraft maintenance and purchased services
expense. Mainline CASM, excluding fuel and special items, of 7.71 cents was up 5.8
percent year-over-year.
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Operating earnings benefited from special items associated with our bankruptcy
case that were recorded during the quarter, as are more fully described in Note 5.
These special items included (i) final resolution of certain administrative claims,
resulting in an operating revenue credit of $45 million and an operating expense credit
of $14 million; and (ii) an operating expense credit of $8 million relating to ongoing
municipal bond litigation. The company, consistent with past practice, has excluded
these special items to provide a useful perspective on quarterly performance excluding
special bankruptcy-related impacts.

The change to deferred revenue accounting for the Mileage Plus program
decreased passenger revenues by an estimated $35 million in the third quarter versus
the previous incremental cost method. However, offsetting this was a $50 million
revenue benefit from the change to the expiration period for inactive customer accounts
from 36 to 18 months that was announced in January of this year. Collectively, these
two Mileage Plus accounting changes increased passenger revenues by $15 million this
quarter. On a year-over-year basis, Mileage Plus accounting changes resulted in
revenues increasing by $32 million.

Mainline unit earnings for the third quarter, which is mainline revenue per
available seat mile (RASM) minus mainline operating cost per available seat mile
(CASM), increased 115 percent to 1.59 cents from 0.74 cents a year ago. Mainline unit
earnings excluding fuel and special items increased 16.4 percent to 5.05 cents from
4.34 cents last year.

Regional affiliates contribution to operating income, excluding special items,
increased by $8 million or 13 percent year-over-year. Regional affiliates revenue,
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excluding special items, increased 6.0 percent or $46 million while regional affiliates
expense increased by 5.3 percent.

The company recorded a largely non-cash income tax expense in the third
quarter of 2007 of $232 million. The effective tax rate for the quarter was 41 percent
compared to an effective tax rate of 24 percent in the third quarter of 2006. Because of
its Net Operating Loss carry-forwards, the company expects to pay minimal cash taxes
for the foreseeable future.

Focus on Balance Sheet Improvement Continues
The company generated positive operating cash flow of $342 million, $211
million or 161 percent higher than the comparable period in 2006 and ended the quarter
with a total cash and short-term investments balance of $5.0 billion, including a
restricted cash balance of $788 million.

The companys cash and short-term investments balance remained relatively
unchanged from the second quarter of 2007, as its operating cash flow was used to
fund planned non-aircraft capital investments, purchase aircraft in conjunction with
refinancing activities, and repurchase debt on the open market. In order to refinance
certain aircraft at a lower cost, the company purchased three aircraft that it had
previously leased, for a total purchase price in excess of $150 million. The purchase of
these aircraft was largely financed with the proceeds of the EETC transaction the
company executed in the second quarter. These transactions did not result in any
change in the companys fleet count of 460 mainline aircraft.

During the quarter the company also repurchased $76 million of debt securities
that are classified as held-for-sale investments in the consolidated balance sheets since
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the related debt issuances remain outstanding. The company separately records
interest income and interest expense on the repurchased notes; the related savings in
financing costs from these investments are included in the total savings from debt
repurchases noted below.

The company reduced its total on balance sheet debt during the quarter by
$112 million. Including off balance sheet debt and deducting the debt securities the
company repurchased during the quarter, our total debt balance declined by $210
million versus the second quarter of 2007. On the same basis, year-to-date, the
company has reduced total debt by $1.6 billion and expects to reduce net financing
costs by approximately $100 million in 2008 through transactions implemented since the
first of the year.

Free cash flow, defined as operating cash flow less capital expenditures,
increased to $60 million versus the third quarter of 2006. Excluding the impact of the
aircraft transactions mentioned above during the quarter, free cash flow would have
increased to more than $200 million from $38 million in the third quarter of 2006.

"Our cash flow remains strong and we are using our cash wisely, said Jake
Brace, executive vice president and chief financial officer. "We delivered overall solid
cost performance, impacted somewhat by increased profit sharing costs driven by our
strong revenue performance.
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Revenue Growth Driven by Continued Strength in International Markets And
Significantly Improved Domestic Performance
Total passenger revenues, excluding special items, increased by 7.6 percent in
the third quarter compared to the prior year. The companys continued focus on
capacity discipline and revenue execution resulted in a significant improvement in
domestic revenue performance. Mainline domestic passenger revenue per available
seat mile (PRASM), excluding special items, increased by 9.0 percent from the third
quarter of 2006 aided by a 4.6 percent reduction in capacity. International markets
continued to produce strong unit revenue growth with PRASM growth, excluding special
items, of 10.8 percent over the same period last year despite a 3.2 percent increase in
international capacity year-over-year.

In total, mainline PRASM, excluding special items, increased by 9.7 percent on a
0.3 percent decrease in traffic, a 1.5 percent decrease in capacity and an 8.2 percent
increase in yield. Consolidated PRASM increased by 9.9 percent year-over-year and,
excluding