United Continental Holdings, Inc. : Announces Full-Year and Fourth-Quarter 2011 Profit

CHICAGO, Jan. 26, 2012/PRNewswire/ -- United Continental Holdings, Inc. (NYSE: UAL) today reported full-year 2011 net income of $1.3 billionor $3.49per diluted share, excluding $483 millionof special items consisting primarily of integration-related costs. Including special items, UAL reported full-year 2011 net income of $840 millionor $2.26per diluted share. UAL reported fourth-quarter net income of $109 millionor $0.30per diluted share, excluding $247 millionof special items. Including special items, UAL reported a fourth-quarter 2011 net loss of $138 millionor $0.42loss per share.

• UAL 2011 consolidated passenger revenue increased 9.0 percent compared to the pro forma results for 2010. Consolidated passenger revenue per available seat mile (PRASM) increased 9.2 percent in 2011 compared to the pro forma results for 2010.
• UAL consolidated passenger revenue increased 5.6 percent in the fourth quarter compared to the same period in 2010. Fourth-quarter 2011 consolidated PRASM increased 8.2 percent year-over-year.
• Consolidated fuel expense for 2011, excluding the impact of hedges, increased 36.5 percent, or $3.4 billion, year-over-year on a pro forma basis.
• UAL ended 2011 with $8.3 billionin unrestricted cash, cash equivalentsshort term investmentsundrawn lines of credit.
• Co-workers earned $265 millionin profit sharing for full-year 2011, which will be distributed on Feb. 14, 2012.
• The consolidated network operated more than two million flightshad 142 million passengers in 2011, carrying the most traffic of any airline in the world.

"We made significant progress in 2011 building the world's leading airline, while running a clean, safereliable operation," said Jeff Smisek, UAL's presidentchief executive officer. "I am proud of the results we achieved by working together at the new ,I look forward to seeing my co-workers share in our success when we distribute more than a quarter billion dollars of profit sharing on Valentine's Day."

UAL results for the fourth quarter include the financial results of its two operating subsidiaries, United AirlinesContinental Airlines. Prior to the closing of the merger on Oct. 1, 2010, UAL results included only the financial results of . Pro forma results that consolidate the financial results for Continental for periods prior to the merger are included for meaningful year-over-year comparisons.

Fourth-Quarter RevenueCapacity

For the fourth quarter of 2011, total revenue was $8.9 billion, an increase of 5.5 percent year-over-year. Fourth-quarter consolidated passenger revenue rose 5.6 percent to $7.8 billion, compared to the same period in 2010.  

Consolidated revenue passenger miles (RPMs) for the fourth quarter of 2011 decreased 3.2 percent year-over-year, while capacity (available seat miles or ASMs) decreased 2.5 percent year-over-year, resulting in a fourth-quarter consolidated load factor of 81.5 percent.  

Consolidated yield for the fourth quarter of 2011 increased 9.0 percent year-over-year.  Fourth-quarter 2011 consolidated PRASM increased 8.2 percent compared to the same period in 2010.

Mainline RPMs in the fourth quarter of 2011 decreased 3.6 percent on a mainline capacity decrease of 2.7 percent year-over-year, resulting in a fourth-quarter mainline load factor of 81.9 percent. Mainline yield for the fourth quarter of 2011 increased 8.3 percent compared to the same period in 2010.  Fourth-quarter 2011 mainline PRASM increased 7.4 percent year-over-year.

"Our strong revenue performance is a direct result of offering customers an unmatched global route networkcompetitive products,our co-workers' focus on service," said Jim Compton, UAL's executive vice presidentchief revenue officer. "Our momentum will help deliver the revenueprofitability necessary for us to continue to invest in a great product for our customers."

Passenger revenue for the fourth quarter of 2011period-to-period comparisons of related statistics for UAL's mainlineregional operations are as follows:

		4Q 2011 Passenger Revenue (millions)		Passenger Revenue vs. 4Q 2010	PRASM vs. 4Q 2010	Yield vs. 4Q 2010	ASMs vs. 4Q 2010
Domestic		$3,149		4.9%	10.3%	9.8%	(4.9%)
Atlantic		1,312		1.6%	3.7%	6.5%	(2.0%)
Pacific		1,110		1.7%	1.1%	4.5%	0.6%
Latin America		624		14.2%	11.7%	11.3%	2.2%
International		$3,046		4.0%	4.3%	6.8%	(0.3%)
Mainline		$6,195		4.4%	7.4%	8.3%	(2.7%)
Regional		1,619		10.2%	11.3%	10.2%	(1.0%)
Consolidated		$7,814		5.6%	8.2%	9.0%	(2.5%)

Cargoother revenue in the fourth quarter of 2011 increased 4.8 percent, or $51 million, year-over-year.

Fourth-Quarter Costs

Total operating expenses, including special items, increased $337 million, or 3.9 percent, in the fourth quarter compared to the same period of 2010. Fourth-quarter fuel costs increased $660 millionyear-over-year. Fourth-quarter 2011 operating expenses, excluding fuel, profit sharingspecial items, decreased $86 million, or 1.5 percent, year-over-year.  

Consolidated costs per available seat mile (CASM), excluding special itemsancillary business expense, increased 10.1 percentmainline CASM, excluding special itemsancillary business expense, increased 10.5 percent in the fourth quarter of 2011 compared to the same period of 2010. Fourth-quarter consolidatedmainline CASM, including special items, increased 6.66.2 percent year-over-year, respectively.

In the fourth quarter, consolidatedmainline CASM, excluding special itemsancillary business expenseholding fuel rateprofit sharing constant, increased 0.5 percent0.7 percent, respectively, compared to the results for the same period of 2010.

"Our results reflect the work of our entire team to operate our airline in a cost effective mannerhelp deliver a strong profit during our first full year as a merged company," said Zane Rowe, UAL's executive vice presidentchief financial officer. "We are well positioned to reach our integration milestonessynergy goals in 2012."

Year-End LiquidityFourth-Quarter Cash Flow

During the fourth quarter, UAL entered into a new $500 millionrevolving credit facility. UAL ended 2011 with $8.3 billionin unrestricted liquidity, comprised of $7.8 billionof cash, cash equivalentsshort-term investments$500 millionof undrawn commitments under the new revolving credit facility. During the fourth quarter, the company generated $265 millionof operating cash flowhad gross capital expenditures of $204 million. The company made scheduled debtnet capital lease payments of $423 millionprepaid $71 millionof debtcapital leases in the fourth quarter. For the full year, the company made $2.6 billionof debtcapital lease payments, including prepayments.

Integration Progress

In 2011, accomplished several milestones toward completing full integration, including obtaining a single operating certificate from the Federal Aviation Administration.

announced several product improvements in 2011, including a $550 millioninvestment in its onboard product,aligned meal, snackbeverage services on board flightsin airport club lounges. The company also introduced MileagePlus as its loyalty programunveiled its 2012 benefitsservices for 's most-frequent flyers.

The company has co-located check-in, ticket countergate facilities at 66 airports since closing the mergernow has a single area for check-in at 291 airports systemwide. More than 800 aircraft are now rebranded in the new livery.

remained focused on building its Working Together culture to ensure that co-workers share in the success they help create. During the year, introduced new perfect-attendance, on-time bonus, profit-sharingpass-travel programs for co-workers.

Notable 2011 Accomplishments

• Continental recorded U.S. Department of Transportation domestic on-time arrival rates of 80.2 percent77.1 percent, respectively,system completion factors of 98.5 percent98.6 percent, respectively, for the year.  For international flights, Continental both recorded on-time arrival rates of 77.4 percent. The on-time arrival rates are based on flights arriving within 14 minutes of scheduled arrival time.
• Co-workers of the combined company earned cash incentive payments for on-time performance totaling $40 millionduring 2011.
• Technicians at the company's subsidiary ratified a new labor agreement,professional engineers at Continental rejected union representation. The company also made substantial progress on a new agreement with the flight attendants in 2011, which led to a tentative agreement in January 2012.
• The company inducted five Next Generation Boeing narrowbody aircraft into its fleetcontinued to retire older, less-efficient models, including six Boeing 737 classics, three Boeing 757-200s, two Boeing 767-200ERsone Boeing 747-400.
• The company expanded its global route network, launching nonstop flights to several international destinations including Lagos, Nigeria; Stuttgart, Germany; Providenciales, TurksCaicos Islands; Port-au-Prince, Haiti; Guadalajara, Mexico;Shanghai, China. The company also announced new daily nonstop international flights beginning in 2012 to Manchester, England; Dublin, Ireland; Buenos Aires, Argentina;Doha, Qatarvia Dubai, United Arab Emirates.
• The company announced its intent to install satellite based WiFi on its entire mainline fleet.
• The company continued to install flat-bed seats in firstbusiness class on its international fleet,now has the new seats on 136 aircraft, more than any other U.S. carrier.
• its partner Chase introduced the new United MileagePlus Explorer Card, offering a wide range of benefits for cardmembers.
• The company operated the first U.S. commercial flight powered by advanced biofuels.

About United Continental Holdings, Inc.

United Continental Holdings, Inc. (NYSE: UAL) is the holding company for both United AirlinesContinental Airlines. Together with United Express, Continental ExpressContinental Connection, these airlines operate an average of 5,656 flights a day to 376 airports on six continents from their hubs in Chicago, Cleveland, Denver, Guam, Houston, Los Angeles, New York/Newark Liberty, San Francisco, TokyoWashington, D.C.Continental are members of Star Alliance, which offers more than 21,000 daily flights to 1,290 airports in 189 countries. Continental's more than 80,000 employees reside in every U.S. statein many countries around the world. For more information about United Continental Holdings, Inc. or follow on .

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements included in this release are forward-lookingthus reflect our current expectationsbeliefs with respect to certain currentfuture eventsfinancial performance. Such forward-looking statements arewill be subject to many risksuncertainties relating to our operationsbusiness 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"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 costsavailability 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 initiativesfleet replacement programs; our ability to utilize our net operating losses; our ability to attractretain 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 travelthe impact that global economic conditions have on customer travel patterns; excessive taxationthe 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 fuelenergy 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 costsavailability of aviationother insurance; the costs associated with security measurespractices; industry consolidation or changes in airline alliances; competitive pressures on pricingon demand; our capacity decisionsthe capacity decisions of our competitors; U.S. or foreign governmental legislation, regulationother actions (including open skies agreementsenvironmental regulations); labor costs; our ability to maintain satisfactory labor relationsthe 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;other risksuncertainties set forth under Item 1A., Risk Factors of our Annual Report on Form 10-K, as well as other risksuncertainties 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 TWELVE MONTHS ENDED DECEMBER 31, 2011 AND
THREE MONTHS ENDED DECEMBER 31, 2010
PRO FORMA RESULTS FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2010
		Three Months Ended						Twelve Months Ended
		December 31,						December 31,
						%				2010		%
(In millions, except per share data)		2011		2010		Increase / (Decrease)		2011		Pro Forma (A)		Increase / (Decrease)
Operating Revenue:
	Passenger:
	Mainline	$6,195		$5,932		4.4		$25,975		$23,877		8.8
	Regional	1,619		1,469		10.2		6,536		5,962		9.6
	Total Passenger Revenue	7,814		7,401		5.6		32,511		29,839		9.0
	Cargo	285		310		(8.1)		1,167		1,160		0.6
	Special revenue item (D)	-		-		NM		107		-		NM
	Other	829		753		10.1		3,325		3,110		6.9
	Total Operating Revenue	8,928		8,464		5.5		37,110		34,109		8.8
Operating Expenses:
	Aircraft fuel (B)	3,105		2,459		26.3		12,375		9,558		29.5
	Salariesrelated costs	1,910		1,822		4.8		7,652		7,489		2.2
	Regional capacity purchase (C)	596		602		(1.0)		2,403		2,420		(0.7)
	Landing feesother rent	477		511		(6.7)		1,928		1,978		(2.5)
	Aircraft maintenance materialsoutside repairs	414		386		7.3		1,744		1,496		16.6
	Depreciationamortization	390		403		(3.2)		1,547		1,544		0.2
	Distribution expenses	333		338		(1.5)		1,435		1,387		3.5
	Aircraft rent	249		256		(2.7)		1,009		1,021		(1.2)
	Special charges (D)	249		482		NM		592		615		NM
	Other operating expense	1,160		1,287		(9.9)		4,603		4,682		(1.7)
	Total Operating Expenses	8,883		8,546		3.9		35,288		32,190		9.6
Operating Income (Loss)		45		(82)		NM		1,822		1,919		(5.1)
Nonoperating Income (Expense):
	Interest expense	(218)		(258)		(15.5)		(949)		(1,047)		(9.4)
	Interest capitalized	8		8		-		32		33		(3.0)
	Interest income	5		7		(28.6)		20		21		(4.8)
	Miscellaneous, net	14		1		NM		(80)		29		NM
	Total Nonoperating Expense	(191)		(242)		(21.1)		(977)		(964)		1.3
Income (Loss) before income taxes		(146)		(324)		(54.9)		845		955		(11.5)
Income tax expense (benefit) (E)		(8)		1		NM		5		-		NM
Net Income (Loss)		($138)		($325)		(57.5)		$840		$955		(12.0)

UNITED CONTINENTAL HOLDINGS, INC.
STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)
		Three Months Ended					Twelve Months Ended
		December 31,					December 31,
(In millions, except per share data)		2011		2010			2011		2010
Operating Revenue:
	Passenger:
	Mainline	$6,195		$5,932			$25,975		$16,019
	Regional	1,619		1,469			6,536		4,217
	Total Passenger Revenue	7,814		7,401			32,511		20,236
	Cargo	285		310			1,167		832
	Special revenue item (D)	-		-			107		-
	Other	829		753			3,325		2,257
	Total Operating Revenue	8,928		8,464			37,110		23,325
Operating Expenses:
	Aircraft fuel (B)	3,105		2,459			12,375		6,687
	Salariesrelated costs	1,910		1,822			7,652		5,002
	Regional capacity purchase (C)	596		602			2,403		1,812
	Landing feesother rent	477		511			1,928		1,307
	Aircraft maintenance materialsoutside repairs	414		386			1,744		1,115
	Depreciationamortization	390		403			1,547		1,079
	Distribution expenses	333		338			1,435		912
	Aircraft rent	249		256			1,009		500
	Special charges (D)	249		482			592		669
	Other operating expense	1,160

UNITED CONTINENTAL HOLDINGS, INC.
CONSOLIDATED NOTES (UNAUDITED)
(A)	United Continental Holdings, Inc. ("UAL") is a holding companyits principal, wholly owned subsidiaries are United Air Lines, Inc. ("United") and, effective October 1, 2010, Continental Airlines, Inc. ("Continental"). Continental became a subsidiary of UAL as a result of a merger. Included in this investor release is pro forma financial information for year-to-date 2010.  All pro forma combined company information is based on financial information previously published in our Investor UpdateEarnings Release issued Apr. 21, 2011, which can be found on our website at http://ir.unitedcontinentalholdings.com.
(B)	UAL's results of operations include fuel expense for both mainlineregional operations.
			Three Months Ended						Twelve Months Ended
	(In millions, except per gallon)		December 31,						December 31,
							%				2010		%
			2011		2010		Increase / (Decrease)		2011		Pro Forma (A)		Increase / (Decrease)
	Total mainline fuel expense		$2,513		$1,989		26.3		$9,936		$7,760		28.0
	Exclude impact of non-cash net mark-to-market ("MTM") impact		-

UNITED CONTINENTAL HOLDINGS, INC.
CONSOLIDATED NOTES (UNAUDITED)
(D)	Special items include the following:
			Three Months Ended				Twelve Months Ended
			December 31,				December 31,
									2010
	(In millions)		2011		2010		2011		Pro Forma (A)		2010
	Revenue - Chase co-branded marketing agreement modification		$              -		$             -		$107		$            -		$           -
	Integration-related costs		170		493		517		493		564
	Termination of maintenance service contract		58		-		58		-		-
	Aircraft charges (gains), net		(2)		24		(6)		142		136
	Lease terminationother special charges		19		-		19		15		4
	Intangible asset impairment		4		29		4		29		29
	Goodwill impairment credit		-		(64)		-		(64)		(64)
	Total special charges		249		482		592		615		669
	Operating non-cash MTM losses on undesignated fuel hedges		-		14		-		32		32
	Loss on asset sales		-		-		-		15		15
	Accelerated depreciation related to early asset retirement		-		-		-		13		13
	Severance		-		-		-		1		1
	Total special items operating expense impact		249		496		592		676		730
	Total special items		249		496		485		676		730
	Income tax benefit		(2)		(11)		(2)		(12)		(12)
	Special items, net of tax		$247		$485		$483		$664		$718
	2011 - Special Items
	UAL, United, ContinentalMileage Plus Holdings, LLC, a wholly owned subsidiary of United, executed an AmendedRestated 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 Chasethe company's loyalty program members accrue frequent flyer miles for making purchases using credit cards issued by Chase. The Co-Brand Agreement modifiescombines the previously existing co-branded agreements between Chaseeach of UnitedContinental, 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)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 consist of expenses related to the mergerintegration of UnitedContinental.  Integration-related costs for the three months ended December 31, 2011 include compensation costs related to systems integrationtraining, costs to repaint aircraftother branding activities, costs to write-off or accelerate depreciation on systemsfacilities that are no longer used or planned to be used for significantly shorter periods,severance primarily associated with administrative headcount reductions. In addition, at Dec. 31, 2011, UAL became obligated to issue to the Pension Benefit Guaranty Corporation ("PBGC"), no later than Feb. 14, 2012, $62.5 million aggregate principal amount of 8% Contingent Senior Unsecured Notes. UAL recorded a liability of approximately $39 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 triggering event under the 8% Notes indenture.
	Other special charges during the fourth quarter of 2011, include costs to terminate a maintenance service contract early, adjustments to reserves for certain legal mattersgainslosses on the disposal of aircraft.  The company also recorded impairment charges on certain intangible assets related to foreign take-offlanding slots to reflect the estimated fair value of these assets as part of its annual impairment test of indefinite lived intangible assets.
	Integration-related costs for the twelve months ended December 31, 2011 include the fourth quarter costs mentioned abovecosts to terminate certain service contracts that will not be used by the company, the cost of one tranche of PBGC Contingent Senior Unsecured Notes, for which the company recorded a liability of $49 million in the second quarter, costs to write-off system assets that are no longer used or planned to be used by the company, payments to third-party consultants to assist with integration planningorganization design, severance related costs primarily associated with administrative headcount reductions, relocationtraining,compensation costs related to the systems integration.
	Other special charges for the threetwelve months ended December 31, 2011 include costs to terminate a maintenance service contract, adjustments to reserves for certain legal mattersgainslosses on the disposal of aircraft. The company also recorded impairment charges on certain intangible assets related to foreign take-offlanding slots to reflect the estimated fair value of these assets as part of its annual impairment test of indefinite lived intangible assets.
	2010 - Special Items
	Integration-related costs consist of charges related to the mergerintegration of UnitedContinental.   Integration-related costs include costs related to the planningexecution of the merger, including costs for items such as financial advisor, legalother advisory fees.  Also included in integration-related costs are salaryseverance-related costs that are primarily associated with administrative headcount reductionscompensation costs related to the merger.  Integration-related costs also include costs to terminate certain service contracts that will not be used by the combined company, costs to write-off system assets that are no longer used or planned to be used by the combined companypayments to third-party consultants to assist with organization planningorganization design.
	Aircraft impairments in the fourth quarterfull year of 2010 are primarily related to a decrease in the estimated market value of UAL's non-operating Boeing 737747 aircraft.
	The intangible impairment is a $29 million write-down of UAL's indefinite-lived Brazil routes due to an estimated decrease in the value of these routes as a result of a new open skies agreement.
	The goodwill impairment credit resulted from the correction of an accounting error.  During 2010, UAL determined it overstated its deferred tax liabilities by approximately $64 million when it applied fresh start accounting upon its exit from bankruptcy in 2006.  Under applicable standards in 2008, this error would have been corrected with a decrease to goodwill, which would have resulted in a decrease in the amount of UAL's 2008 goodwill impairment charge.  Therefore, UAL corrected this overstatement in the fourth quarter of 2010 by reducing its deferred tax liabilitiesrecorded it as a goodwill impairment credit in its consolidated statement of operations.
	Non-cash MTM gains on undesignated fuel hedges relates to United's MTM gains on fuel hedge contracts that were not designated as cash flow hedges. Under applicable accounting standards, MTM gains/losses on undesignated contracts are immediately recorded to fuel expense each period unlike MTM gains/losses on designated cash flow hedges which are initially deferred through other comprehensive income.

UNITED CONTINENTAL HOLDINGS, INC.
STATISTICS
		Three Months Ended						Twelve Months Ended
		December 31,						December 31,
						%				2010		%
		2011		2010		Increase / (Decrease)		2011		Pro Forma (A)		Increase / (Decrease)
Mainline:
	Passengers (thousands)	22,960		24,417		(6.0)		96,360		99,452		(3.1)
	Revenue passenger miles (millions)	43,130		44,750		(3.6)		181,763		184,580		(1.5)
	Available seat miles (millions)	52,636		54,104		(2.7)		219,437		220,060		(0.3)
	Cargo ton miles (millions)	661		755		(12.5)		2,646		3,002		(11.9)

UNITED CONTINENTAL HOLDINGS, INC.
STATISTICS (Continued)
		Three Months Ended						Twelve Months Ended
		December 31,						December 31,
						%				2010		%
		2011		2010		Increase / (Decrease)		2011		Pro Forma (A)		Increase / (Decrease)
Consolidated (MainlineRegional):
	Passengers (thousands)	34,191		35,733		(4.3)		141,799		145,550		(2.6)
	Revenue passenger miles (millions)	49,469		51,087		(3.2)		207,531		210,541		(1.4)
	Available seat miles (millions)	60,714		62,264		(2.5)		252,528		253,094		(0.2)
	Passenger load factor	81.5%		82.0%		(0.5) pts.		82.2%		83.2%

UNITED CONTINENTAL HOLDINGS, INC.
NON-GAAP FINANCIAL RECONCILIATION
UAL evaluates its financial performance utilizing various GAAPnon-GAAP financial measures including, net income/loss, net earnings/loss per shareCASM, among others. CASM is a common metric used in the airline industry to measure an airline's cost structureefficiency. 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,other items unusual or infrequent in nature, is useful to investors because they are non-recurring items not indicative of UAL's on-going performance. UAL began to apply cash flow hedge accounting effective April 1, 2010. Prior to the designation of fuel hedge instruments as cash flow hedges, MTM gainslosses were immediately recognized in fuel expense. UAL believes that the net fuel hedge adjustments provide managementinvestors with a better perspective of its performancecomparison to its peers because the adjustments reflect the economic fuel cost during the periods presentedmany of our peers apply cash flow hedge accounting.
	Three Months Ended								Twelve Months Ended
(In millions)	December 31,								December 31,
					$		%				2010		$		%
	2011		2010		Increase / (Decrease)		Increase / (Decrease)		2011		Pro Forma (A)		Increase / (Decrease)		Increase / (Decrease)
Consolidated Operating Revenue	$8,928		$8,464		$464		5.5		$37,110		$34,109		$3,001		8.8
Less: Special revenue item (D)	-		-		-		NM		107		-		107		NM
Consolidated Operating Revenue, excluding special revenue item	$8,928		$8,464		$464		5.5		$37,003		$34,109		$2,894		8.5

UNITED CONTINENTAL HOLDINGS, INC.
NON-GAAP FINANCIAL RECONCILIATION (Continued)
		Three Months Ended						Twelve Months Ended
		December 31,						December 31,
						%				2010		%
CASM Mainline Operations (cents):		2011		2010		Increase / (Decrease)		2011		Pro Forma (A)		Increase / (Decrease)
	Cost per available seat mile (CASM)	13.88		13.07		6.2		13.15		12.00		9.6
	Less:  Special items (D)	0.47		0.91		NM		0.27		0.31		NM
	CASM, excluding special items	13.41		12.16		10.3		12.88		11.69		10.2
	Less:  Ancillary business expenses	0.12		0.13		(7.7)		0.11		0.12		(8.3)
	CASM, excluding special itemsancillary business expenses	13.29		12.03		10.5		12.77		11.57		10.4
	Less:  Fuel expense	4.77		3.65		30.7		4.53		3.51		29.1
	CASM, excluding special items, ancillary business expensesfuel	8.52		8.38		1.7		8.24		8.06		2.2
	Less: Profit sharing per available seat mile	0.04		0.02		100.0		0.12		0.13		(7.7)
	CASM, excluding special items, ancillary business expenses, fuel, profit sharing	8.48

SOURCE United Continental Holdings, Inc.

United Continental Holdings, Inc. Worldwide Media Relations, [phone], [e-mail]