Airline to place some employees on temporary unpaid leave

CHICAGO, March 21, 2003-- United Airlines (NYSE: UAL) today announced that the company will temporarily reduce its worldwide schedule by approximately 8 percent below what had been planned due to the continuing effects on future bookings of the military conflict in Iraq.

�We saw a drop in future bookings as a result of the threat of war, and we expect this to continue with the onset of war itself,� said Greg Taylor, United senior vice president-Planning. �Despite the schedule reduction, we are protecting our route network by primarily reducing the frequency of flights on certain routes. Customers will still have service to all of the markets the airline currently serves, either through convenient connecting or nonstop service.�

Along with the schedule reduction, the company will also act quickly to reduce its costs by putting a number of employees on temporary unpaid leave.

�Our number one priority is to continue to operate a safe and reliable airline,� said Sara Fields, United�s senior vice president-People Services and Engagement. �However, we are at a point where we must curtail or delay all work not critical to the company's safe operation or successful emergence from bankruptcy.� The number of employees affected by the schedule reduction has not yet been determined.

-more- Beginning April, 1st, United will reduce 104 U.S. domestic mainline flights from its schedule and on April 6, the airline will trim its international schedule by 20 flights. United will reduce, but not eliminate, service to Amsterdam, Frankfurt, London, Tokyo, Paris, Taipei and Brussels. After the reductions, United will operate 1,574 mainline flights and 1,478 United Express flights systemwide. Schedule changes will be reflected in United�s reservation systems beginning Tuesday, March 25, 2003. United will work to reaccommodate customers affected by the schedule reduction on alternate United or United Express flights.

News releases and other information about United Airlines can be found at the company�s website, www.unitedairlines.com.au