Chicago, Sept. 8, 2004 -- United Airlines (OTCBB:UALAQ.OB) announced today that it is taking steps to lower its distribution costs as part of the company's ongoing restructuring efforts. Beginning on Sept. 9, United will add a fee to tickets purchased at U.S. airport ticket offices and through United reservations offices for calls originating in the United States and Canada.

As tickets sold through the company's Web site will not incur the new fees, purchasing tickets through United's united.com Web site will continue to provide customers with a cost-effective way to purchase tickets and redeem Mileage Plus® rewards.

United will add a $10 fee to tickets purchased at airport ticket counters and a $5 fee to tickets purchased through United reservations offices. The fees, which are effective Sept. 9, apply to domestic and international tickets sold through United reservations centers and U.S. airport ticket offices.

"The industry continues to face extremely difficult conditions that are only made more challenging by record fuel prices and a weakening revenue environment," said John Tague, United's executive vice president-Marketing, Sales, and Revenue. "Given the dynamics of today's marketplace, we need to take this step to lower our distribution costs to remain competitive."

Tague said the changes are expected to generate significant savings for the company, which is working to lower its costs as part of its ongoing restructuring efforts.

The fees apply to new ticket sales only. No fees will be charged to change current reservations, either at the airport or through United reservations. Also excluded from additional fees are Mileage Plus 1K and Global Services customers, government, military, bereavement and Pass Plus fares.

Tickets sold through United's united.com Web site will not incur the new fees. Booking travel on www.united.com http://www.united.com enables customers to have more control over their travel planning by offering access to the latest promotional offers, the ability to research flight schedules, find the lowest available fares, pay no booking fees and, until Dec. 31, 2004, earn a one-time 1,000-mile booking bonus*. In addition, united.com offers EasyAccess services that enable travelers to view United flight schedules, check flight status and access Mileage Plus information. Registration for United's EasyUpdate service, which sends up-to-the-minute flight information to a passenger's e-mail, mobile phone or pager, is also available on united.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 and Ted may be found on the company's Web sites at www.united.com and www.flyted.com

*1,000 mile booking bonus offer is effective through Dec. 31, 2004, and is valid for first time award bookings only. E-Fares and award travel are not eligible for the 1,000 mile booking bonus offer. Bonus miles will be awarded to the passenger booking the flight(s). The passenger booking the flight shall be the united.com-registered user logged into the Web site. Mileage Plus membership number must be provided at the time of purchase in order to receive the bonus miles awarded in connection with this offer. A roundtrip is defined as travel from an origin city to a destination city with return travel beginning in the outbound destination city back to the first origin city with all segments on United®, Ted®, or United Express®. Bonus miles do not count toward Elite status. Miles accrued, awards issued and bonus offers are subject to the rules of the United Mileage Plus program. Please allow 4 to 8 weeks after completing qualifying travel activity for bonus miles to be posted to your Mileage Plus account. The Mileage Plus Program, including accruals, awards and bonus miles offers, is subject to change without notice. Taxes and fees related to award travel are the responsibility of the passenger. United and Mileage Plus are registered service marks. For complete details about the Mileage Plus program, visit www.united.com http://www.united.com/.

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