Begins Service in December to Mexican Beach Destinations

Chicago, August 11, 2004 -- Just six months after joining the battle of the low-fare air carriers, United's own low-fare offering Ted is making an impact with customers in the marketplace.

"By every measure we take, Ted has been successful in its first six months," said Sean Donohue, vice president of Ted. "Thanks to the hard work and dedication of United employees, we've received strong endorsements from customers, outpaced our goals for on-time departures and arrivals, had positive financial performance and made significant competitive inroads in the markets we serve. From our Mileage Plus customers to flyers brand-new to the airline, travelers are pleased with our Ted service. In addition, no other low-fare carrier provides connections to the number and range of destinations United serves worldwide."

Of more than 3,000 Ted customers who were polled recently, 82 percent said employees were accommodating and thoughtful, 76 percent said they'd recommend Ted to a friend, two-thirds said they were satisfied with the value they got for their money and 82 percent said they would choose Ted for a future trip.

Ted's on-time performance to date has been above goal, contributing to United's overall first-place finish for on-time arrivals among the major carriers ranked by the U.S. Department of Transportation in its June Air Travel Consumer Report. With a load factor in the upper 80s for its first six months of operation, Ted's effect on the competition has been significant.

Ted now operates 196 flights per day, carrying more than 25,000 customers traveling between its hubs in Denver, Los Angeles, San Francisco, Washington and Chicago to a wide variety of primarily leisure destinations. Currently operating with 45 Airbus 320s configured with 156 seats, Ted will add an additional reconfigured A320 aircraft to serve the Mexican beach destinations of San Jose del Cabo and Puerto Vallarta from San Francisco beginning December 16, 2004. Ted aircraft feature a large Economy Plus section of 66 seats, which provide more legroom than any other low-fare carrier's economy-class seating.

Ted, part of United, provides service to many popular leisure destinations. Combining outstanding service with unique onboard amenities and entertainment, including Tedevision and TedTunes, along with full participation in United's award-winning Mileage Plus program, Ted offers a unique experience among low-fare carriers. On flights longer than 3.5 hours, Ted offers restaurant-quality meals for purchase. On shorter flights, Ted customers can purchase high-quality snacks. More information and current fares can be found at www.flyted.com.

United, United Express and Ted operate more than 3,500 flights a day on a route network that spans the globe. News releases and other information about United may be found at the company's Web site at www.united.com 

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