UNITED ANNOUNCES FULL-YEAR AND FOURTH-QUARTER 2012 RESULTS

          UNITED ANNOUNCES FULL-YEAR AND FOURTH-QUARTER 2012 RESULTS

UAL REPORTS $589 MILLION FULL-YEAR 2012 PROFIT EXCLUDING SPECIAL CHARGES; $723
MILLION LOSS INCLUDING SPECIAL CHARGES

UAL REPORTS $190 MILLION FOURTH-QUARTER 2012 LOSS EXCLUDING SPECIAL CHARGES;
$620 MILLION LOSS INCLUDING SPECIAL CHARGES

PR Newswire

CHICAGO, Jan. 24, 2013

CHICAGO, Jan. 24, 2013 /PRNewswire/ --United Continental Holdings, Inc.
(NYSE: UAL) today reported full-year 2012 net income of $589 million, or $1.59
per diluted share, excluding $1.3 billion of special charges. Including
special charges, UAL reported a full-year 2012 net loss of $723 million, or
$2.18 per share. UAL reported a fourth-quarter 2012 net loss of $190 million,
or $0.58 per share, excluding $430 million of special charges. Including
special charges, UAL reported a fourth-quarter 2012 net loss of $620 million,
or $1.87 per share.

  oUAL full-year 2012 consolidated passenger revenue increased 0.2 percent
    year-over-year. Consolidated passenger revenue per available seat mile
    (PRASM) increased 1.7 percent in 2012 compared to 2011.
  oSuperstorm Sandy reduced fourth-quarter revenue by approximately $140
    million and profit by approximately $85 million.
  oFull-year 2012 consolidated unit costs (CASM), holding fuel rate and
    profit sharing constant and excluding special charges and third-party
    business expense, increased 2.5 percent year-over-year on a consolidated
    capacity reduction of 1.5 percent. Full-year 2012 consolidated CASM
    increased 6.7 percent year-over-year.
  oUAL ended 2012 with $7.0 billion in unrestricted liquidity.
  oCo-workers earned $119 million in profit sharing for full-year 2012, which
    will be distributed on Feb. 14, 2013.

"I want to thank my co-workers for working together in 2012 as we completed
the mostdifficult aspects of our merger integration," said Jeff Smisek, UAL's
chairman, president and chief executive officer. "With much of our integration
behind us, our significantly improved operational performance and our
increasing customer satisfaction, we can now go forward as one company. This
year we will continue on our path to becoming the world's leading airline."

Fourth-Quarter Revenue and Capacity

For the fourth quarter of 2012, total revenue was $8.7 billion, a decrease of
2.5 percent year-over-year. Fourth-quarter consolidated passenger revenue
decreased 3.6 percent to $7.5 billion, compared to the same period in 2011.

Consolidated revenue passenger miles (RPMs) decreased 3.2 percent on a
consolidated capacity (available seat miles) decrease of 4.2 percent
year-over-year for the fourth quarter, resulting in a fourth-quarter
consolidated load factor of 82.3 percent.

Fourth-quarter 2012 consolidated PRASM increased 0.6 percent compared to the
same period in 2011. Consolidated yield for the fourth quarter of 2012
decreased 0.4 percent year-over-year.

Mainline RPMs in the fourth quarter of 2012 decreased 3.7 percent on a
mainline capacity decrease of 4.3 percent year-over-year, resulting in a
fourth-quarter mainline load factor of 82.5 percent. Mainline yield for the
fourth quarter of 2012 decreased 0.9 percent compared to the same period in
2011. Fourth-quarter 2012 mainline PRASM decreased 0.3 percent year-over-year.

"While we didn't meet our revenue goals in 2012, we have addressed the
integration issues that drove our underperformance," said Jim Compton, UAL's
vice chairman and chief revenue officer. "We're now positioned to capitalize
on market opportunities across our network, and to earn back our share of
revenue, based on solid operations and great customer service."  

Passenger revenue for the fourth quarter of 2012 and period-to-period
comparisons of related statistics for UAL's mainline and regional operations
are as follows:

                4Q 2012           Passenger                        Available
                Passenger         Revenue vs.   PRASM    Yield    Seat
                Revenue                       vs. 4Q    vs. 4Q   Milesvs.
                                  4Q 2011       2011      2011     4Q 2011
                (millions)
Domestic        $2,953            (6.2%)        (1.8%)    (1.9%)   (4.5%)
Atlantic        1,214             (7.5%)        (0.3%)    (0.3%)   (7.2%)
Pacific         1,156             4.1%          5.9%      3.8%     (1.7%)
Latin America   590               (5.4%)        (4.2%)    (6.5%)   (1.3%)
International   2,960             (2.8%)        1.3%      0.0%     (4.1%)
Mainline        5,913             (4.6%)        (0.3%)    (0.9%)   (4.3%)
Regional        1,620             0.0%          3.7%      0.4%     (3.6%)
Consolidated    $7,533            (3.6%)        0.6%      (0.4%)   (4.2%)

Year-over-year cargo and other revenue in the fourth quarter of 2012 increased
5.0 percent, or $56 million, to $1.2 billion.

Fourth-Quarter Costs

Total operating expenses, excluding special charges, increased $94 million, or
1.1 percent, in the fourth quarter versus the same period in 2011. Including
special charges, fourth-quarter total operating expenses increased $284
million, or 3.2 percent, year-over-year. Third-party business expense was $118
million in the fourth quarter.

Consolidated and mainline CASM, excluding special charges and third-party
business expense, increased 4.8 percent and 5.0 percent, respectively, in the
fourth quarter of 2012 compared to the same period of 2011. Fourth-quarter
consolidated and mainline CASM, including special charges, increased 7.7 and
8.5 percent year-over-year, respectively.

In the fourth quarter, consolidated and mainline CASM, excluding special
charges and third-party business expense and holding fuel rate and profit
sharing constant, increased 4.8 percent and 4.7 percent, respectively,
compared to the results for the same period of 2011.

"While we reported a full-year profit in 2012, these results clearly fell
short of our expectations and the return goals we have set," said John Rainey,
UAL's executive vice president and chief financial officer. "2013 will be an
important year for us as we take the necessary steps to create economic value
and achieve a sufficient level of profitability."

Liquidity, Cash Flow and Return on Invested Capital

UAL ended the year with $7.0 billion in unrestricted liquidity, including $500
million of undrawn commitments under a revolving credit facility. During the
fourth quarter, the company generated $31 million of operating cash flow and
had gross capital expenditures and purchase deposits of $1.0 billion, which
included the delivery of 11 aircraft. The company made debt and capital lease
principal payments of $270 million in the fourth quarter. For the full year,
the company made debt and capital lease principal payments of $1.5 billion,
including prepayments. The company's return on invested capital for the year
ended Dec. 31, 2012, was 8.0 percent, below the company's goal of a 10 percent
return over the business cycle.

2012 Events

  oFor the fourth quarter, United recorded a U.S. Department of
    Transportation domestic on-time arrival rate of 80.1 percent, exceeding
    its goal for the quarter. For the full year, United recorded a domestic
    on-time arrival rate of 77.3 percent and a system completion factor of
    98.6 percent. For international flights, United recorded an on-time
    arrival rate of 73.7 percent. The on-time arrival rates are based on
    flights arriving within 14 minutes of scheduled arrival time.
  oUnited co-workers earned cash incentive payments for on-time performance
    totaling $26 million during 2012.
  oPilots ratified a new joint labor agreement for all United Airlines
    pilots, and flight attendants from the company's United, Continental and
    Continental Micronesia (CMI) subsidiaries ratified new labor agreements.
    United also reached an agreement with technicians from the CMI subsidiary.
    The company began the joint collective bargaining process with its flight
    attendants, technicians, dispatchers and airport and reservation agents.
  oUnited introduced its Outperform Recognition Program, awarding cash prizes
    each quarter to employees for excellence in customer service.
  oThe company took delivery of six Boeing 787-8 Dreamliners in 2012 and
    launched its first commercial 787 flight in early November. United also
    took delivery of 19 Boeing 737-900ERs, and removed from service 19 Boeing
    737-500s, one Boeing 757-200 and three Boeing 767-200s. In addition, the
    company sold or returned to lessors 37 aircraft that had been parked in
    long-term storage.
  oUnited announced an order to purchase 100 Boeing 737 MAX 9 aircraft and 50
    Boeing 737-900ER aircraft for delivery beginning in 2013. These new
    aircraft will allow United to replace older, less-efficient aircraft to
    reduce fuel and operating costs, enhance the customer experience and
    maximize network opportunities.
  oUAL raised $2.2 billion of debt financing through multiple issuances of
    enhanced equipment trust certificates at an average interest rate of
    approximately 4.5 percent, with each issuance setting new average interest
    rate lows for this type of security. The debt proceeds are being used to
    finance the acquisition of seven new Boeing 787-8 and 32 new Boeing
    737-900ER aircraft and to refinance the debt relating to three Boeing
    737-900ER aircraft delivered in 2009.
  oThe company expanded its industry-leading global route network, launching
    nonstop flights to numerous international destinations including Istanbul;
    Manchester, England; Dublin; Buenos Aires, Argentina; Monterrey, Mexico;
    San Salvador, El Salvador; Kelowna, British Columbia, Canada; and Doha,
    Qatar, via Dubai, United Arab Emirates. United also announced new nonstop
    international flights beginning in 2013 to Taipei, Taiwan; Shannon,
    Ireland; Paris; Edmonton, Alberta, Fort McMurray, Alberta, and Thunder
    Bay, Ontario, Canada; and Denver's first service to Asia with non-stop
    service to Tokyo. The company started 18 new domestic routes in 2012,
    including the company's first service to Fairbanks, Alaska; Grand Forks,
    N.D.; Williston, N.D.; and Sarasota, Fla.United also announced eight new
    domestic markets for 2013 including the company's first service to
    Fayetteville, N.C. and Santa Fe, N.M.
  oUnited opened its new Network Operations Center in downtown Chicago with
    leading technology and tools for employees who manage the 24/7 global
    operation.
  oUnited converted to a single passenger service system, launched a single
    website, united.com, and a single loyalty program, MileagePlus, and made
    policy and procedure changes to become a single airline for its customers.
  oThe company continued to install flat-bed seats in premium cabins on its
    international fleet and now has the new seats on 176 aircraft, more than
    any otherU.S. carrier.
  oUnited continued to install Economy Plus seating, and it is now on 91
    percent of the mainline fleet.
  oThe company began installing global satellite-based Wi-Fi on its mainline
    fleet and expects to have more than 300 aircraft equipped with Wi-Fi by
    the end of 2013.
  oUnited and Chase launched the premium MileagePlus Club co-brand card,
    building on the strong performance of the MileagePlus Explorer card
    launched in 2011.

About United

United Airlines and United Express operate an average of 5,472 flights a day
to 381 airports across six continents. In 2012, United and United Express
carried more passenger traffic than any other airline in the world and
operated nearly two million flights carrying 140 million customers. United is
investing in upgrading its onboard products and now offers more flat-bed seats
in its premium cabins and more extra-legroom economy-class seating than any
airline in North America. In 2013, United became the first U.S.-based
international carrier to offer satellite-based Wi-Fi on long-haul overseas
routes. The airline also features DIRECTV® on nearly 200 aircraft, offering
customers more live television access than any other airline in the world.
United operates more than 700 mainline aircraft and has made large-scale
investments in its fleet. In 2013, United will continue to modernize its fleet
by taking delivery of more than two dozen new Boeing aircraft. The company
expanded its industry-leading global route network in 2012, launching nine new
international and 18 new domestic routes. 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 194 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.

Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995: Certain statements included in this release are forward-looking and thus
reflect our current expectations and beliefs with respect to certain current
and future events and financial performance. Such forward-looking statements
are and will be subject to many risks and uncertainties relating to our
operations and business environment that may cause actual results to differ
materially from any future results expressed or implied in such
forward-looking statements. Words such as "expects," "will," "plans,"
"anticipates," "indicates," "believes," "forecast," "guidance," "outlook" and
similar expressions are intended to identify forward-looking statements.
Additionally, forward-looking statements include statements which do not
relate solely to historical facts, such as statements which identify
uncertainties or trends, discuss the possible future effects of current known
trends or uncertainties, or which indicate that the future effects of known
trends or uncertainties cannot be predicted, guaranteed or assured. All
forward-looking statements in this release are based upon information
available to us on the date of this release. We undertake no obligation to
publicly update or revise any forward-looking statement, whether as a result
of new information, future events, changed circumstances or otherwise, except
as required by applicable law. Our actual results could differ materially from
these forward-looking statements due to numerous factors including, without
limitation, the following: our ability to comply with the terms of our various
financing arrangements; the costs and availability of financing; our ability
to maintain adequate liquidity; our ability to execute our operational plans;
our ability to control our costs, including realizing benefits from our
resource optimization efforts, cost reduction initiatives and fleet
replacement programs; our ability to utilize our net operating losses; our
ability to attract and retain customers; demand for transportation in the
markets in which we operate; an outbreak of a disease that affects travel
demand or travel behavior; demand for travel and the impact that global
economic conditions have on customer travel patterns; excessive taxation and
the inability to offset future taxable income; general economic conditions
(including interest rates, foreign currency exchange rates, investment or
credit market conditions, crude oil prices, costs of aviation fuel and energy
refining capacity in relevant markets); our ability to cost-effectively hedge
against increases in the price of aviation fuel; any potential realized or
unrealized gains or losses related to fuel or currency hedging programs; the
effects of any hostilities, act of war or terrorist attack; the ability of
other air carriers with whom we have alliances or partnerships to provide the
services contemplated by the respective arrangements with such carriers; the
costs and availability of aviation and other insurance; the costs associated
with security measures and practices; industry consolidation or changes in
airline alliances; competitive pressures on pricing and on demand; our
capacity decisions and the capacity decisions of our competitors; U.S. or
foreign governmental legislation, regulation and other actions (including open
skies agreements and environmental regulations); labor costs; our ability to
maintain satisfactory labor relations and the results of the collective
bargaining agreement process with our union groups; any disruptions to
operations due to any potential actions by our labor groups; weather
conditions; the possibility that expected merger synergies will not be
realized or will not be realized within the expected time period; and other
risks and uncertainties set forth under Item 1A., Risk Factors of our Annual
Report on Form 10-K, as well as other risks and uncertainties set forth from
time to time in the reports we file with the SEC. Consequently,
forward-looking statements should not be regarded as representations or
warranties by us that such matters will be realized.

-tables attached-



UNITED CONTINENTAL HOLDINGS, INC.
STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)
THREE MONTHS AND YEAR ENDED DECEMBER 31, 2012 AND 2011
                  Three Months Ended              Year Ended
                  December 31,        %           December 31,      %
 (In millions,                        Increase/                     Increase/
 except per share 2012       2011     (Decrease)  2012     2011     (Decrease)
 data)
 Operating
 revenue:
 Passenger:
 Mainline         $5,913     $6,195   (4.6)       $25,804  $25,975  (0.7)
 Regional         1,620      1,620    -           6,779    6,536    3.7
 Total passenger  7,533      7,815    (3.6)       32,583   32,511   0.2
 revenue
 Cargo            243        285      (14.7)      1,018    1,167    (12.8)
 Special revenue  -          -        NM          -        107      NM
 item (C)
 Other            926        828      11.8        3,551    3,325    6.8
 Total operating  8,702      8,928    (2.5)       37,152   37,110   0.1
 revenue
 Operating
 expenses:
 Aircraft fuel    3,095      3,105    (0.3)       13,138   12,375   6.2
 (A)
 Salaries and     1,986      1,910    4.0         7,945    7,652    3.8
 related costs
 Regional
 capacity         583        596      (2.2)       2,470    2,403    2.8
 purchase (B)
 Landing fees and 453        477      (5.0)       1,929    1,928    0.1
 other rent
 Aircraft
 maintenance
 materials and    452        414      9.2         1,760    1,744    0.9

 outside repairs
 Depreciation and 385        390      (1.3)       1,522    1,547    (1.6)
 amortization
 Distribution     314        333      (5.7)       1,352    1,435    (5.8)
 expenses
 Aircraft rent    246        249      (1.2)       993      1,009    (1.6)
 Special charges  439        249      NM          1,323    592      NM
 (C)
 Other operating  1,214      1,160    4.7         4,681    4,603    1.7
 expenses
 Total operating  9,167      8,883    3.2         37,113   35,288   5.2
 expenses
 Operating income (465)      45       NM         39       1,822    (97.9)
 (loss)
 Nonoperating
 income
 (expense):
 Interest expense (204)      (218)    (6.4)       (835)    (949)    (12.0)
 Interest         11         8        37.5        37       32       15.6
 capitalized
 Interest income  7          5        40.0        23       20       15.0
 Miscellaneous,   19         14       35.7        12       (80)     NM
 net
 Total
 nonoperating     (167)      (191)    (12.6)      (763)    (977)    (21.9)
 expense
 Income (loss)
 before income    (632)      (146)    332.9       (724)    845      NM
 taxes
 Income tax
 expense          (12)       (8)      50.0        (1)      5        NM
 (benefit) (D)
 Net income       $(620)     $(138)   349.3       $(723)   $840     NM
 (loss)
 Earnings (loss)  $(1.87)    $(0.42)  345.2       $(2.18)  $2.54    NM
 per share, basic
 Earnings (loss)
 per share,       $(1.87)    $(0.42)  345.2       $(2.18)  $2.26    NM
 diluted
 Weighted average 331        330      0.3         331      329      0.6
 shares, basic
 Weighted average 331        330      0.3         331      383      (13.6)
 shares, diluted
 NM Not
 meaningful









UNITED CONTINENTAL HOLDINGS, INC.
CONSOLIDATED NOTES (UNAUDITED)
    UAL's results of operations include fuel expense for
(A) both mainline and regional operations.
                      Three Months                Year Ended
                      Ended
                      December 31,    %           December 31,      %
    (In millions,                     Increase/                     Increase/
    except per        2012    2011    (Decrease)  2012     2011     (Decrease)
    gallon)
    Total mainline
    fuel expense      $2,481  $2,490  (0.4)       $10,572  $10,439  1.3
    excluding hedge
    impacts
    Hedge gains
    (losses) reported (34)    (23)    NM         (141)    503      NM
    in fuel expense
    (a)
    Total mainline    2,515   2,513   0.1         10,713   9,936    7.8
    fuel expense
    Regional fuel     580     592     (2.0)       2,425    2,439    (0.6)
    expense
    Consolidated fuel 3,095   3,105   (0.3)       13,138   12,375   6.2
    expense
    Settled hedge
    gains (losses)    -       20      NM         (1)      (60)     NM
    not recorded in
    fuel expense (b)
    Fuel expense
    including all
    gains (losses)    3,095   3,085   0.3         13,139   12,435   5.7
    from settled
    hedges
    Hedge non-cash
    mark-to-market    29      8       NM         38       1        NM
    gains (c)
    Fuel expense
    including all     $3,066  $3,077  (0.4)       $13,101  $12,434  5.4
    hedge impacts
    Mainline fuel
    consumption       764     789     (3.2)       3,275    3,303    (0.8)
    (gallons)
    Mainline average
    aircraft fuel
    price per gallon  324.7   315.6   2.9         322.8    316.0    2.2
    excluding hedge
    impacts (cents)
    Mainline average
    aircraft fuel     329.2   318.5   3.4         327.1    300.8    8.7
    price per gallon
    (cents)
    Mainline average
    aircraft fuel
    price per gallon
    including all     329.2   316.0   4.2         327.1    302.6    8.1
    gains (losses)
    from settled
    hedges (cents)
    Mainline average
    aircraft fuel
    price per gallon  325.4   315.0   3.3         326.0    302.6    7.7
    including all
    hedge impacts
    (cents)
    Regional fuel
    consumption       181     180     0.6         741      735      0.8
    (gallons)
    Regional average
    aircraft fuel     320.4   328.9   (2.6)       327.3    331.8    (1.4)
    price per gallon
    (cents)
    Consolidated
    consumption       945     969     (2.5)       4,016    4,038    (0.5)
    (gallons)
    Consolidated
    average aircraft
    fuel price per    323.9   318.1   1.8         323.6    318.9    1.5
    gallon excluding
    hedge impacts
    (cents)
    Consolidated
    average aircraft  327.5   320.4   2.2         327.1    306.5    6.7
    fuel price per
    gallon (cents)
    Consolidated
    average aircraft
    fuel price per
    gallon including  327.5   318.4   2.9         327.2    307.9    6.3
    all gains
    (losses) from
    settled hedges
    (cents)
    Consolidated
    average aircraft
    fuel price per    324.4   317.5   2.2         326.2    307.9    5.9
    gallon including
    all hedge
    impacts (cents)
    (a) Includes gains (losses) from settled hedges that were designated for
    hedge accounting. UAL allocates 100% of hedge accounting gains (losses)
    to mainline fuel expense.
    (b) Includes ineffectiveness gains (losses) and gains (losses) on
    derivatives not designated for hedge accounting. These amounts are
    recorded in Nonoperating income (expense): Miscellaneous, net.
    (c) Includes ineffectiveness gains (losses) and non-cash mark-to-market
    gains (losses) on all open hedge positions. These amounts are recorded in
    Nonoperating income (expense): Miscellaneous, net.
    UAL has contractual relationships with various regional carriers to
    provide regional aircraft and turboprop service branded as United Express.
(B) Under these agreements, UAL pays the regional carriers contractually
    agreed fees for crew expenses, maintenance expenses and other costs of
    operating these flights. These costs include aircraft rent of $163 million
    and $669 million for the three months and year ended December 31, 2012,
    respectively, of which $111 million and $52 million is included in
    regional capacity purchase expense and aircraft rentals, respectively, for
    the three months ended December 31, 2012 and $461 million and $208
    million is included in regional capacity purchase expense and aircraft
    rentals, respectively, for the year ended December 31, 2012 in our
    Statements of Consolidated Operations.



UNITED CONTINENTAL HOLDINGS, INC.
CONSOLIDATED NOTES (UNAUDITED)
(C) Special items include the
    following:
                               Three Months Ended          Year Ended
                               December 31,                December 31,
    (In millions)              2012           2011         2012          2011
    Revenue - Chase co-branded $          $        $    
    marketing agreement        -             -           -            $107
    modification
    Integration-related costs  408            170          739           517
    Intangible asset           24             4            30            4
    impairment
    Labor agreement costs      21             -            475           -
    Voluntary severance and    -              -            125           -
    benefits
    Termination of a
    maintenance service        -              58           -             58
    contract
    Gains on sales of assets
    and other special charges, (14)           17           (46)          13
    net
    Total special charges      439            249          1,323         592
    Total special items        439            249          1,323         485
    Income tax benefit         (9)            (2)          (11)          (2)
    Special items, net of tax  $430           $247         $1,312        $483
    2012 - Special items
    Integration-related costs: Includes compensation costs related to systems
    integration and training, costs to repaint aircraft and other branding
    activities, costs to write-off or accelerate depreciation on systems and
    facilities that are no longer used or planned to be used for significantly
    shorter periods, relocation costs for employees and severance primarily
    associated with administrative headcount reductions. In addition, on June
    30, 2012 UAL became obligated under an indenture to issue to the Pension
    Benefit Guaranty Corporation ("PBGC"), no later than Feb. 14, 2013, $62.5
    million aggregate principal amount of 8% Contingent Senior Unsecured
    Notes. UAL recorded a liability of approximately $48 million for the fair
    value of that obligation. The company classified the liability as an
    integration-related cost since the financial results of UAL, excluding
    Continental's results, would not have resulted in a financial triggering
    event under the 8% Notes indenture. In addition, on Dec. 31, 2012, the
    company entered into an agreement with the PBGC providing for, among other
    things, the replacement of (i) the company's contingent obligation to
    issue up to $500 million principal amount of 8% Contingent Senior Notes if
    certain financial triggers were met, of which $188 million had been
    incurred as of Dec. 31, 2012, with $400 million principal amount of new 8%
    Notes due 2024 and (ii) the $652 million 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 treating the substitution of the obligations outstanding on
    Dec. 31, 2012 as an extinguishment of such debt. The resulting charge of
    $309 million 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 categorized the expense as an integration-related charge because
    the note restructuring would not have occurred if it were not for the
    merger.
    Intangible Asset Impairment: In the first quarter of 2012, the company
    recorded a $6 million impairment charge on an intangible asset related to
    certain take-off and landing slots to reflect the discontinuance of one of
    the frequencies on an international route. In the fourth quarter of 2012,
    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: On Aug. 3, 2012, the company announced it had
    reached an agreement in principle with respect to a new joint collective
    bargaining agreement with the Air Line Pilots Association ("ALPA"),
    representing pilots at United and Continental. The company recorded $454
    million of expense in the third quarter associated with lump sum cash
    payments that would be made in conjunction with the ratification of the
    contract and the completion of the integrated pilot seniority list. This
    charge also includes costs associated with changes to existing pilot
    disability plans negotiated in connection with the agreement in principle.
    The lump sum payments are not in lieu of future pay increases and were
    accrued in the third quarter as a result of the payments becoming
    probable, primarily due to reaching the agreement in principle. The
    agreement was ratified in the fourth quarter of 2012. In the fourth
    quarter of 2012, the company accrued an additional $21 million associated
    with the agreement.
    Voluntary severance and benefits: In the first quarter of 2012, the
    company recorded $49 million associated with two voluntary employee
    programs. In one program, approximately 400 mechanics offered to retire
    early in exchange for a cash severance payment that was based on the
    number of years of service the employee had accumulated. The other
    program is a voluntary company-offered leave of absence that approximately
    1,800 flight attendants accepted, which allows for continued medical
    coverage during the leave of absence period. In the second quarter of
    2012, the company recorded $76 million associated with a voluntary
    severance program. Approximately 1,300 flight attendants volunteered to
    retire early in exchange for a cash severance payment that was based on
    the number of years of service each employee had accumulated.
    Gains on sales of assets and other special charges, net: In the first
    quarter of 2012, the company sold six aircraft and its interest in a crew
    hotel in Hawaii. The company also made adjustments to legal reserves. In
    the second quarter of 2012, the company sold three aircraft, realizing a
    net gain of $7 million. In the fourth quarter of 2012, the company sold
    three aircraft realizing a net gain of $14 million. 



    2011 - Special items
    Special Revenue Item: UAL, United, Continental and Mileage Plus Holdings,
    LLC, a wholly owned subsidiary of United, executed an Amended and Restated
    Co-Branded Card Marketing Services Agreement (the Co-Brand Agreement) with
    Chase Bank USA, N.A. (Chase) in June 2011, through which the company sells
    mileage credits to Chase and the company's loyalty program members accrue
    frequent flyer miles for making purchases using credit cards issued by
    Chase. The Co-Brand Agreement modifies and combines the previously
    existing co-branded agreements between Chase and each of United and
    Continental, respectively. As a result of the execution of the Co-Brand
    Agreement, revenues received as part of this agreement are subject to
    Accounting Standards Update 2009-13, "Multiple-Deliverable Revenue
    Arrangements – a consensus of the FASB Emerging Issues Task Force" (ASU
    2009-13), adopted by the company on Jan. 1, 2011, which is applied to all
    contracts entered into or materially modified after the adoption date of
    the accounting standard. The application of the new accounting standard to
    the Co-Brand Agreement, which was determined to be a material modification
    of the previously existing co-branded agreements, decreases the value of
    the air transportation deliverables related to the agreement that the
    company records as deferred revenue (and ultimately Passenger Revenue when
    redeemed awards are flown) and increases the value of the
    marketing-related deliverables recorded in Other Revenue at the time these
    marketing-related deliverables are provided. The provisions of ASU 2009-13
    require that existing deferred revenue be adjusted retroactively to
    reflect the value of the undelivered air transportation deliverables at
    the date of the contract modification. As a result, the company recorded
    a retroactive, one-time non-cash income adjustment to revenue of $107
    million in the second quarter of 2011. 
    Integration-related costs: Integration-related costs include compensation
    costs related to systems integration and training, costs to repaint
    aircraft and other branding activities, costs to write-off or accelerate
    depreciation on systems and facilities that are no longer used or planned
    to be used for significantly shorter periods, and severance primarily
    associated with administrative headcount reductions. In addition, the
    company recorded a liability of $49 million in the second quarter for the
    cost of one tranche of PBGC Contingent Senior Unsecured Notes. In
    addition, UAL recorded a liability of approximately $39 million in the
    fourth quarter for the cost of an additional tranche of PBGC Contingent
    Senior Unsecured Notes. The company classified the PBGC liabilities as
    integration-related costs since the financial results of UAL, excluding
    Continental's results, would not have resulted in a triggering events
    under the 8% Notes indenture.
    Gains on sales of assets and other special charges, net: Other special
    charges for the three months and year ended December 31, 2011 include
    costs to terminate a maintenance service contract early, adjustments to
    reserves for certain legal matters and gains and losses on the disposal of
    aircraft. 
    No federal income tax expense was recognized related to our pretax income
    for the year ended December 31, 2011 due to the utilization of book net
    operating loss carry forwards for which no benefit has previously been
    recognized. We are required to provide a valuation allowance for our
(D) deferred tax assets in excess of deferred tax liabilities because UAL
    concluded that it is more likely than not that such deferred tax assets
    will ultimately not be realized. As a result, pre-tax losses for the
    three months ended December 31, 2012 and 2011 and the year ended December
    31, 2012 were not reduced by any tax benefits.







UNITED CONTINENTAL HOLDINGS, INC.
STATISTICS
                  Three Months Ended              Year Ended
                  December 31,        %           December 31,      %
                  2012       2011     Increase/   2012     2011     Increase/
                                      (Decrease)                    (Decrease)
Mainline:
Passengers        21,811     22,960   (5.0)       93,595   96,360   (2.9)
(thousands)
Revenue passenger 41,555     43,130   (3.7)       179,416  181,763  (1.3)
miles (millions)
Available seat    50,376     52,636   (4.3)       216,330  219,437  (1.4)
miles (millions)
Cargo ton miles   601        661      (9.1)       2,460    2,646    (7.0)
(millions)
Passenger load
factor:
Mainline          82.5 %     81.9 %   0.6  pts.   82.9 %   82.8 %   0.1   pts.
Domestic          84.3 %     84.2 %   0.1  pts.   84.9 %   85.1 %   (0.2) pts.
International     80.6 %     79.5 %   1.1  pts.   80.9 %   80.5 %   0.4   pts.
Passenger revenue
per available     11.74      11.77    (0.3)       11.93    11.84    0.8
seat mile (cents)
Average yield per
revenue passenger 14.23      14.36    (0.9)       14.38    14.29    0.6
mile (cents)
Average fare per  $271.10    $269.82  0.5         $275.70  $269.56  2.3
passenger
Cost per
available seat
mile (CASM)
(cents):
CASM (a)          15.06      13.88    8.5         14.12    13.15    7.4
CASM, excluding
special charges   14.19      13.41    5.8         13.51    12.88    4.9
(b)
CASM, excluding
special charges
and third-party   13.95      13.29    5.0         13.37    12.77    4.7

business expenses
(b)
CASM, excluding
special charges,
third-party
business          8.96       8.52     5.2         8.42     8.24     2.2

expenses and fuel
(b)
CASM, holding
fuel rate and
profit sharing
constant,

excluding special 13.92      13.29    4.7         13.03    12.77    2.0
charges and
third-party
business

expenses (b)
Mainline average
aircraft fuel
price per gallon
excluding         324.7      315.6    2.9         322.8    316.0    2.2

hedge impacts
(cents) (c)
Mainline average
aircraft fuel     329.2      318.5    3.4         327.1    300.8    8.7
price per gallon
(cents)
Mainline average
aircraft fuel
price per gallon
including
                  329.2      316.0    4.2         327.1    302.6    8.1
all gains
(losses) from
settled hedges
(cents) (c)
Mainline average
aircraft fuel
price per gallon
including         325.4      315.0    3.3         326.0    302.6    7.7

all hedge impacts
(cents) (c)
Fuel gallons
consumed          764        789      (3.2)       3,275    3,303    (0.8)
(millions)
Aircraft in fleet 702        701      0.1         702      701      0.1
at end of period
Average stage
length (miles)    1,884      1,850    1.8         1,895    1,844    2.8
(d)
Average daily
utilization of    9:52       10:14    (3.6)       10:38    10:42    (0.6)
each aircraft
(hours)
Regional:
Passengers        11,444     11,231   1.9         46,846   45,439   3.1
(thousands)
Revenue passenger 6,311      6,339    (0.4)       26,069   25,768   1.2
miles (millions)
Available seat    7,790      8,078    (3.6)       32,530   33,091   (1.7)
miles (millions)
Passenger load    81.0 %     78.5 %   2.5  pts.   80.1 %   77.9 %   2.2   pts.
factor
Passenger revenue
per available     20.80      20.05    3.7         20.84    19.75    5.5
seat mile (cents)
Average yield per
revenue passenger 25.67      25.56    0.4         26.00    25.36    2.5
mile (cents)
Aircraft in fleet 551        555      (0.7)       551      555      (0.7)
at end of period
Average stage
length (miles)    540        552      (2.2)       542      555      (2.3)
(d)





UNITED CONTINENTAL HOLDINGS, INC.
STATISTICS (Continued)
                     Three Months                 Year Ended
                     Ended
                     December 31,     %           December 31,      %
                     2012     2011    Increase/   2012     2011     Increase/
                                      (Decrease)                    (Decrease)
Consolidated
(Mainline and
Regional):
    Passengers       33,255   34,191  (2.7)       140,441  141,799  (1.0)
    (thousands)
    Revenue
    passenger miles  47,866   49,469  (3.2)       205,485  207,531  (1.0)
    (millions)
    Available seat   58,166   60,714  (4.2)       248,860  252,528  (1.5)
    miles (millions)
    Passenger load   82.3 %   81.5 %  0.8  pts.   82.6 %   82.2 %   0.4  pts.
    factor
    Passenger
    revenue per      12.95    12.87   0.6         13.09    12.87    1.7
    available seat
    mile (cents)
    Total revenue
    per available    14.96    14.71   1.7         14.93    14.70    1.6
    seat miles
    (cents)
    Average yield
    per revenue      15.74    15.80   (0.4)       15.86    15.67    1.2
    passenger mile
    (cents)
    CASM (a)         15.76    14.63   7.7         14.91    13.97    6.7
    CASM, excluding
    special charges  15.01    14.22   5.6         14.38    13.74    4.7
    (b)
    CASM, excluding
    special charges
    and third-party  14.80    14.12   4.8         14.26    13.65    4.5
    business
    expenses (b)
    CASM, excluding
    special charges,
    third-party      9.48     9.01    5.2         8.98     8.75     2.6
    business
    expenses and
    fuel (b)
    CASM, holding
    fuel rate and
    profit sharing
    constant,
    excluding        14.80    14.12   4.8         13.99    13.65    2.5
    special charges
    and third-party
    business
    expenses (b)
    Consolidated
    average aircraft
    fuel price per   323.9    318.1   1.8         323.6    318.9    1.5
    gallon excluding
    hedge impacts
    (cents) (c)
    Consolidated
    average aircraft
    fuel price per   327.5    320.4   2.2         327.1    306.5    6.7
    gallon (cents)
    (c)
    Consolidated
    average aircraft
    fuel price per
    gallon including 327.5    318.4   2.9         327.2    307.9    6.3
    all gains
    (losses) from
    settled hedges
    (cents) (c)
    Consolidated
    average aircraft
    fuel price per
    gallon including 324.4    317.5   2.2         326.2    307.9    5.9
    all hedge
    impacts (cents)
    (c)
    Fuel gallons
    consumed         945      969     (2.5)       4,016    4,038    (0.5)
    (millions)
    Average
    full-time
    equivalent       84.5     82.0    3.0         84.6     81.7     3.5
    employees
    (thousands)
(a) Includes impact of special charges (See Note C).
(b) These financial measures provide management and investors the ability to
    monitor the company's performance on a consistent basis.
(c) Fuel price per gallon includes aircraft fuel and related taxes.
(d) Average stage length equals the average distance a seat travels adjusted
    for size of aircraft (available seat miles/seats).







UNITED CONTINENTAL HOLDINGS, INC.
NON-GAAP FINANCIAL RECONCILIATION
UAL evaluates its financial performance utilizing various GAAP and non-GAAP financial measures
including net income/loss, net earnings/loss per share and CASM, among others. CASM is a
common metric used in the airline industry to measure an airline's cost structure and
efficiency. Pursuant to SEC Regulation G, UAL has included the following reconciliation of
reported non-GAAP financial measures to comparable financial measures reported on a GAAP
basis. UAL believes that excluding fuel costs from certain measures is useful to investors
because it provides an additional measure of management's performance excluding the effects of
a significant cost item over which management has limited influence. UAL also believes that
adjusting for special items is useful to investors because they are non-recurring items not
indicative of UAL's on-going performance. UAL also believes that excluding third-party
business expenses, such as maintenance, ground handling and catering services for third
parties, fuel sales and non-air mileage redemptions, provides more meaningful disclosure
because these expenses are not directly related to UAL's core business.
            Three Months                              Year Ended
            Ended
(in         December 31,      $           %           December 31,      $           %
millions)
            2012     2011     Increase/   Increase/   2012     2011     Increase/   Increase/
                              (Decrease)  (Decrease)                    (Decrease)  (Decrease)
Operating   $8,702   $8,928   $(226)      (2.5)       $37,152  $37,110  $42         0.1
revenue
Less:
Special     -        -        -           NM         -        107      (107)       NM
revenue
item (C)
Operating
revenue,
excluding   $8,702   $8,928   $(226)      (2.5)       $37,152  $37,003  $149        0.4
special
revenue
item
Operating   $9,167   $8,883   $284        3.2         $37,113  $35,288  $1,825      5.2
expenses
Less:
Special     439      249      190         NM         1,323    592      731         NM
charges (C)
Operating
expenses,
excluding   8,728    8,634    94          1.1         35,790   34,696   1,094       3.2
special
charges
Less:
Third-party 118      60       58          96.7        298      235      63          26.8
business
expenses
Less: Fuel  3,095    3,105    (10)        (0.3)       13,138   12,375   763         6.2
expense
Less:
Profit
sharing     (41)     23       (64)        NM         119      265      (146)       (55.1)
programs,
including
taxes
Operating
expenses,
excluding
fuel,
profit
sharing,    $5,556   $5,446   $110        2.0         $22,235  $21,821  $414        1.9
special
charges and
third-party
business
expenses
Net Income  $(620)   $(138)   $(482)      349.3       $(723)   $840     $(1,563)    NM
(loss)
Less:
Special     430      247      183         NM         1,312    483      829         NM
items, net
(C)
Net
Earnings,
excluding   $(190)   $109     $(299)      NM         $589     $1,323   $(734)      (55.5)
special
items
Diluted
earnings    $(1.87)  $(0.42)  $(1.45)     345.2       $(2.18)  $2.26    $(4.44)     NM
(loss) per
share
Add back:
Special     1.29     0.72     0.57        NM         3.77     1.23     2.54        NM
items, net
Diluted
earnings
per share,  $(0.58)  $0.30    $(0.88)     NM         $1.59    $3.49    $(1.90)     (54.4)
excluding
special
items







UNITED CONTINENTAL HOLDINGS, INC.
NON-GAAP FINANCIAL RECONCILIATION (Continued)
                           Three Months               Year Ended
                           Ended
                           December 31,   %           December 31,  %
                           2012    2011   Increase/   2012   2011   Increase/
                                          (Decrease)                (Decrease)
CASM Mainline Operations
(cents)
Cost per available seat    15.06   13.88  8.5         14.12  13.15  7.4
mile (CASM)
Less: Special charges (C)  0.87    0.47   NM          0.61   0.27   NM
CASM, excluding special    14.19   13.41  5.8         13.51  12.88  4.9
charges
Less: Third-party business 0.24    0.12   100.0       0.14   0.11   27.3
expenses
CASM, excluding special
charges and third-party    13.95   13.29  5.0         13.37  12.77  4.7
business expenses
Less: Fuel expense         4.99    4.77   4.6         4.95   4.53   9.3
CASM, excluding special
charges, third-party       8.96    8.52   5.2         8.42   8.24   2.2
business expenses and fuel
Less: Profit sharing per   (0.08)  0.04   NM         0.06   0.12   (50.0)
available seat mile
CASM, excluding special
charges, third-party       9.04    8.48   6.6         8.36   8.12   3.0
business expenses, fuel,
and profit sharing
Add: Profit sharing held
constant at prior year     0.05    0.04   25.0        0.12   0.12   -
expense per available seat
mile
Add: Current year fuel
cost at prior year fuel    4.83    -      NM          4.55   -      NM
price per available seat
mile
Add: Prior year fuel cost  -       4.77   NM          -      4.53   NM
per available seat mile
CASM, holding fuel rate
and profit sharing
constant and excluding     13.92   13.29  4.7         13.03  12.77  2.0
special charges and
third-party business
expenses
CASM Consolidated
Operations (cents)
Cost per available seat    15.76   14.63  7.7         14.91  13.97  6.7
mile (CASM)
Less: Special charges (C)  0.75    0.41   NM          0.53   0.23   NM
CASM, excluding special    15.01   14.22  5.6         14.38  13.74  4.7
charges
Less: Third-party business 0.21    0.10   110.0       0.12   0.09   33.3
expenses
CASM, excluding special
charges and third-party    14.80   14.12  4.8         14.26  13.65  4.5
business expenses
Less: Fuel expense         5.32    5.11   4.1         5.28   4.90   7.8
CASM, excluding special
charges, third-party       9.48    9.01   5.2         8.98   8.75   2.6
business expenses and fuel
Less: Profit sharing per   (0.07)  0.04   NM         0.05   0.11   (54.5)
available seat mile
CASM, excluding special
charges, third-party       9.55    8.97   6.5         8.93   8.64   3.4
business expenses, fuel,
and profit sharing
Add: Profit sharing held
constant at prior year     0.04    0.04   -           0.11   0.11   -
expense per available seat
mile
Add: Current year fuel
cost at prior year fuel    5.21    -      NM          4.95   -      NM
price per available seat
mile
Add: Prior year fuel cost  -       5.11   NM          -      4.90   NM
per available seat mile
CASM, holding fuel rate
and profit sharing
constant and excluding     14.80   14.12  4.8         13.99  13.65  2.5
special charges and
third-party business
expenses





UNITED CONTINENTAL HOLDINGS, INC.
RETURN ON INVESTED CAPITAL (ROIC)
                                                         Year Ended
(in millions)
                                                         December 31, 2012
Net Operating Profit After Tax (NOPAT)
Pre-tax income excluding special charges (a)             $599
Add: Interest expense (b)                                821
Add: Interest component of capitalized aircraft rent (b) 478
Add: Net interest on pension (b)                         164
Less: Adjusted income tax expense                        (10)
NOPAT                                                    $2,052
Effective tax rate                                       1.7%
Invested Capital (five-quarter average)
Total assets                                             $38,083
Add: Capitalized aircraft rent (@ 7.0x)                  7,015
Less: Non-interest bearing liabilities                   (19,607)
Average Invested Capital                                 $25,491
Return on Invested Capital                               8.0%
                                                 Year Ended

                                                 December 31, 2012
(a) Non-GAAP Financial Reconciliation
Loss before income taxes                         $(724)
Add: Special charges                             1,323
Pre-tax income excluding special charges         $599
(b) Net of tax shield.



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
 
Press spacebar to pause and continue. Press esc to stop.