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United To Hold Live Webcast Of Fourth-Quarter 2012 Financial Results

     United To Hold Live Webcast Of Fourth-Quarter 2012 Financial Results

SPECIAL CHARGES SUMMARY FOR THE FOURTH QUARTER 2012

PR Newswire

CHICAGO, Jan. 17, 2013

CHICAGO, Jan. 17, 2013 /PRNewswire/ --United Continental Holdings, Inc.
(NYSE: UAL) will hold a conference call to discuss fourth-quarter 2012
financial results on Thursday, Jan. 24, 2013, at 9:30 a.m. CT/10:30 a.m. ET. A
live, listen-only webcast of the conference call will be available at
ir.united.com.

The webcast will be available for replay within 24 hours of the conference
call and then archived on the website for a limited time.

Fourth-Quarter Special Charges

UAL expects to record special charges of $439 million ($430 million, net of
income taxes) during the fourth quarter of 2012. Details are as follows (in
millions):

                                                Three Months Ended
                                                Dec. 31, 2012
Integration-related costs                       $408
Impairment                                      24
Labor agreement costs                           21
Gains on sale of assets, net                    (14)
 Total special charges               $439
Income tax benefit                              9
 Total special charges, net of taxes $430

Integration-related costs: Integration-related costs include compensation
costs related to systems integration and training, costs to repaint aircraft
and other branding activities, relocation costs for employees and severance
primarily associated with administrative headcount reductions, which totaled
approximately $99 million during the fourth quarter of 2012.

In addition, on Dec. 31, 2012, the company entered into an agreement with the
Pension Benefit Guaranty Corporation providing for, among other things, the
modification of the company's contingent obligation to issue, if certain
financial triggers were met, up to $500 million principal amount of 8%
Contingent Senior Notes. In order to reduce the aggregate amount of notes to
be issued and eliminate the contingent nature of the obligation, the company
replaced the existing $188 million principal amount of 8% Contingent Senior
Notes incurred as of Dec. 31, 2012, and the obligation to issue any additional
8% Contingent Senior Notes with $400 million principal amount of new 8% Notes
due 2024, which contain no additional contingencies. Also, the company agreed
to replace the $652 million principal amount outstanding of the company's 6%
Senior Notes due 2031 with $326 million principal amount of new 6% Notes due
2026 and $326 million principal amount of new 6% Notes due 2028. The company
is accounting for this agreement as a debt extinguishment, resulting in a
charge of $309 million that represents the fair value of the additional $212
million of 8% Notes that we agreed to issue and the change in the fair value
of the other new 6% Notes and 8% Notes versus their previous carrying values.
The company did not receive any cash proceeds in connection with the issuance
of the new notes.

Impairment: The company recorded an impairment charge of $24 million related
to foreign take-off and landing slots to reflect the estimated fair value of
these assets as part of our annual impairment test of indefinite-lived
intangible assets. Reductions of frequencies and weakening of the U.S. dollar
against certain foreign currencies attributed to the charge.

Labor agreement costs: The company recorded an additional $21 million in costs
associated with the joint collective bargaining agreement with the Air Line
Pilots Association, International that was ratified in December 2012.

Gains on sale of assets, net: The company sold three aircraft during the
fourth quarter of 2012, realizing a net gain of $14 million. 

About United

United Airlines and United Express operate an average of 5,557 flights a day
to 378 airports on six continents from the airline's hubs in Chicago,
Cleveland, Denver, Guam, Houston, Los Angeles, New York/Newark, San Francisco,
Tokyo and Washington, D.C. United is upgrading its cabins with more flat-bed
seats in first and business class and more extra-legroom economy-class seating
than any other airline in North America. United now has 180 airplanes
featuring DIRECTV®, offering customers more live television access than any
other airline in the world. United operates nearly 700 mainline aircraft and
has orders for more than 270 new aircraft deliveries through 2022. In 2012,
United was the first North American airline to take delivery of new Boeing 787
Dreamliner aircraft. United was rated the world's most admired airline on
FORTUNE magazine's 2012 airline-industry list of the World's Most Admired
Companies. Readers of Global Traveler magazine have voted United's MileagePlus
program the best frequent flyer program for nine consecutive years. United is
a founding member of Star Alliance, which provides service to 193 countries
via 27 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.

SOURCE United Continental Holdings, Inc.

Website: http://www.united.com
Contact: United Continental Holdings, Inc. Worldwide Media Relations,
+1-312-997-8640, media.relations@united.com
 
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