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UAL CORP.'S $224 MILLION FOURTH QUARTER NET LOSS INCLUDES $62 MILLION OF PRE-TAX CHARGES

 CHICAGO, Jan. 28 /PRNewswire/ -- UAL Corp. (NYSE: UAL), the holding company whose primary subsidiary is United Airlines, today reported a fourth quarter net loss of $224 million ($9.27 per share), including pre-tax charges and expenses of $62 million.
 Excluding these items, the net loss in the fourth quarter 1992 was $184 million ($7.63 a share). This compares with a 1991 fourth quarter net loss of $253 million ($10.69 a share) including $130 million of pre-tax charges in the 1991 fourth quarter, and with a $167 million net loss ($7.08 a share) when the 1991 fourth quarter charges are excluded.
 For the full year 1992, UAL reported a net loss of $957 million ($39.75 a share), including a $540 million one-time impact of two accounting changes, FAS 106 and FAS 109. The net loss before the total effect of adopting these accounting changes, including the current year expense impact of FAS 106, was $370 million ($15.35 a share.)
 "Unacceptable is the only way to describe our fourth quarter and full year results," said Stephen M. Wolf, chairman and chief executive officer. "The industry remains in a state of chaos, and although all affected had hoped the economy would strengthen, that rational pricing would return and that barriers to international competition would be reduced, prudence dictates that United Airlines must proceed as if none of these factors will improve.
 "In light of these considerations, we recently announced a two-point program to reduce substantially our operating expenses in order to ensure United's long-term viability and preserve our current structure," Wolf explained. "We have implemented the first step: an immediate $400 million reduction in our operating expenses. The second step involved the participation in our cost reduction program by all United employees, which, disappointingly, has not been embraced by our union representatives. In light of their decision, we will now be compelled to pursue other expense-reduction efforts."
 United is currently in discussions with the Boeing Company, its principal aircraft supplier, to reduce significantly its aircraft on order and option.
 United said today that the 2,800 employees whose jobs are being eliminated include a 20 percent reduction in the number of corporate officers. A restructuring charge of $25 million related primarily to the layoffs was recorded in the fourth quarter, the company said.
 In addition, the company said the fourth quarter included an $18 million expense for certain taxes and foreign employee benefits, and $19 million of incremental expenses associated with the adoption of FAS 106.
 UAL Corp.'s operating revenues in the fourth quarter increased 10.0 percent, from $2.911 billion to $3.202 billion. Operating expenses were up 8.3 percent from $3.258 billion to $3.528 billion.
 United Airlines' revenue passenger yield, the amount of revenue received for each revenue passenger flown, declined 3.2 percent in the fourth quarter compared with the fourth quarter of 1991.
 The company's cost per available seat mile, adjusted for the pre-tax charges recorded in both years, was 9.6 cents in the fourth quarter of 1992, 3.0 percent below the 9.9 cents recorded in the fourth quarter last year. The cost per available seat mile, as reported, was 9.8 cents in the fourth quarter of 1992 compared with 10.3 cents reported in the fourth quarter of 1991.
 -0- 1/28/93
 /CONTACT: Joe Hopkins (media), 708-952-5770, or after hours, 708-952-4088; or Pamela Hanlon (investors), 708-952-7501, both of UAL/
 /FIRST AND FINAL ADD -- TABULAR MATERIAL -- TO FOLLOW/
 (UAL)


CO: UAL Corp. ST: Illinois IN: AIR SU: ERN

GK -- NY049 -- 0216 01/28/93 11:41 EST
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Date:Jan 28, 1993
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