**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM 10-Q**

| **x**                                                                |   | **QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF                THE**                                                                                                                                                         |
|----------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                 |   | **SECURITIES                EXCHANGE ACT OF 1934**                                                                                                                                                                                                          |
| **For                the quarterly period ended September 30, 2007** |
| **OR**                                                               |
| **o**                                                                |   | **TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF                THE**                                                                                                                                                        |
|                                                                 |   | **SECURITIES                EXCHANGE ACT OF 1934**                                                                                                                                                                                                          |
|                                                                 |   | **For                the transition period from                                                  to         **  |

**        **

|   | **Commission****File Number** | **Exact Name of Registrant as Specified in****its Charter, Principal Office Address and****Telephone                Number** | **State                of****Incorporation** | **I.R.S. Employer****Identification No** |   |
|--------|------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------|----------------------------------------------------|--------|
|   | 001-06033                          | **UAL                Corporation**                                                                                                                                                  | Delaware                                     | 36-2675207                                         |   |
|   | 001-11355                          | **United                Air Lines, Inc.**77                W. Wacker DriveChicago,                Illinois 60601(312)                997-8000                                       | Delaware                                     | 36-2675206                                         |   |

* *

* *

* *

* *

* *

* *

|     United                Air Lines, Inc. | 205                (100% owned by UAL Corporation) |
|---------------------------------------------------------------|----------------------------------------------------|

----

**UAL      Corporation and Subsidiary Companies and**

**United      Air Lines, Inc. and Subsidiary Companies**

**Report      on Form 10-Q**

**For      the Quarter Ended September 30, 2007**

|                     | PART I.                FINANCIAL INFORMATION                                                                                                                   |   | Page   |
|--------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
| Item                1.   | Financial                Statements                                                                                                                                 |   |   |
|                     |                                                                                                                                                                |   |   |
|                     | UAL                Corporation:                                                                                                                                     |   |   |
|                     |   Condensed                Statements of Consolidated Operations (Unaudited)                                                                              |   |   | 3 |   |
|                     |   Condensed                Statements of Consolidated Financial Position (Unaudited)                                                                      |   |   | 5 |   |
|                     |   Condensed                Statements of Consolidated Cash Flows (Unaudited)                                                                              |   |   | 7 |   |
|                     |                                                                                                                                                                |   |   |
|                     | United                Air Lines, Inc.:                                                                                                                              |   |   |
|                     |   Condensed                Statements of Consolidated Operations (Unaudited)                                                                              |   |   | 8 |   |
|                     |   Condensed                Statements of Consolidated Financial Position (Unaudited)                                                                      |   |   | 10 |   |
|                     |   Condensed                Statements of Consolidated Cash Flows (Unaudited)                                                                              |   |   | 12 |   |
|                     |                                                                                                                                                                |   |   |
|                     | Combined                Notes to Condensed Consolidated Financial Statements (Unaudited)                (UAL                Corporation and United Air Lines, Inc.) |   |   | 13 |   |
|                     |                                                                                                                                                                |   |   |
| Item                2.   | Management’s                Discussion and Analysis of Financial Condition and Results of                Operations                                           |   |   | 29 |   |
| Item                3.   | Quantitative                and Qualitative Disclosures About Market Risk                                                                                           |   |   | 44 |   |
| Item                4.   | Controls                and Procedures                                                                                                                              |   |   | 44 |   |
|                     |                                                                                                                                                                |   |   |   |   |
|                     | PART II.                OTHER INFORMATION                                                                                                                      |   |   |   |   |
| Item                1.   | Legal                Proceedings                                                                                                                                    |   |   | 45 |   |
| Item1A.                  | Risk                Factors                                                                                                                                         |   |   | 46 |   |
| Item                2.   | Unregistered                Sales of Equity Securities and Use of Proceeds                                                                                          |   |   | 47 |   |
| Item                6.   | Exhibits                                                                                                                                                            |   |   | 47 |   |
| Signatures          |                                                                                                                                                                |   |   |   |
| Exhibit Index  |                                                                                                                                                                |   |   |   |

----

**PART I.      FINANCIAL INFORMATION**

**ITEM      1. FINANCIAL STATEMENTS**

| **UAL                Corporation and Subsidiary Companies**                                     |   |
|-------------------------------------------------------------------------------------------------|--------|
| ***Condensed                Statements of Consolidated Operations                (Unaudited)*** |   |
| **(In                millions, except per share amounts)**                                      |   |
|                                                                                            |   |
|                                                                                            |   | **Three                Months Ended September 30,** |   |
|                                                                                            |   | **2007** |   |   | **2006** |   |
| Operating                revenues:                                                              |   |   |   |   |   |   |
| Passenger                - United Airlines                                                      |   | $ | 4,225 |   |   | $ | 3,916 |   |
| Passenger                - Regional Affiliates                                                  |   |   | 819 |   |   |   | 773 |   |
| Cargo                                                                                           |   |   | 198 |   |   |   | 183 |   |
|      Special              operating items (Note 2)                     |   |   | 45  |   |   |   | -  |   |
| Other                operating revenues                                                         |   |   | 240 |   |   |   | 304 |   |
|                                                                                            |   |   | 5,527 |   |   |   | 5,176 |   |
| Operating                expenses:                                                              |   |   |   |   |   |   |   |   |
| Aircraft                fuel                                                                    |   |   | 1,324 |   |   |   | 1,368 |   |
| Salaries                and related costs                                                       |   |   | 1,062 |   |   |   | 1,060 |   |
| Regional                affiliates                                                              |   |   | 751 |   |   |   | 713 |   |
| Purchased                services                                                               |   |   | 344 |   |   |   | 302 |   |
| Aircraft                maintenance materials and outside repairs                               |   |   | 295 |   |   |   | 252 |   |
| Depreciation                and amortization                                                    |   |   | 245 |   |   |   | 226 |   |
| Distribution                expenses (Note 1)                                                   |   |   | 211 |   |   |   | 215 |   |
| Landing                fees and other rent                                                      |   |   | 201 |   |   |   | 199 |   |
| Aircraft                rent                                                                    |   |   | 102 |   |   |   | 104 |   |
| Cost                of third party sales                                                        |   |   | 68 |   |   |   | 153 |   |
| Special                operating items (Note 2)                                            |   |   | (22 | ) |   |   | (30 | ) |
| Other                operating expenses                                                         |   |   | 290 |   |   |   | 279 |   |
|                                                                                            |   |   | 4,871 |   |   |   | 4,841 |   |
|                                                                                            |   |   |   |   |   |   |   |   |
| Earnings                from operations                                                         |   |   | 656 |   |   |   | 335 |   |
|                                                                                            |   |   |   |   |   |   |   |   |
| Other                income (expense):                                                          |   |   |   |   |   |   |   |   |
| Interest                expense                                                                 |   |   | (161 | ) |   |   | (164 | ) |
| Interest                income                                                                  |   |   | 71 |   |   |   | 72 |   |
| Interest                capitalized                                                             |   |   | 5 |   |   |   | 3 |   |
| Miscellaneous,                net                                                               |   |   | (6 | ) |   |   | 3 |   |
|                                                                                            |   |   | (91 | ) |   |   | (86 | ) |
|                                                                                            |   |   |   |   |   |   |   |   |
| Earnings                before income taxes and equity in earnings                              |   |   |   |   |   |   |   |   |
| of                affiliates                                                                    |   |   | 565 |   |   |   | 249 |   |
| Income                tax expense                                                               |   |   | 232 |   |   |   | 60 |   |
|                                                                                            |   |   |   |   |   |   |   |   |
| Earnings                before equity in earnings of affiliates                                 |   |   | 333 |   |   |   | 189 |   |
| Equity                in earnings of affiliates, net of tax                                     |   |   | 1 |   |   |   | 1 |   |
| Net                income                                                                       |   | $ | 334 |   |   | $ | 190 |   |
|                                                                                            |   |   |   |   |   |   |   |   |
| Earnings                per share, basic                                                        |   | $ | 2.82 |   |   | $ | 1.62 |   |
| Earnings                per share, diluted                                                      |   | $ | 2.21 |   |   | $ | 1.30 |   |

*Combined Notes to Condensed Consolidated Financial Statements      (Unaudited).*

----

| **UAL                Corporation and Subsidiary Companies**                                     |   |                             |   |   |
|-------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|--------|
| ***Condensed                Statements of Consolidated Operations                (Unaudited)*** |   |                             |   |   |
| **(In                millions, except per share amounts)**                                      |   |                             |   |   |
|                                                                                            |   | **Successor**                    |   |   | **Successor** |   |   | **Predecessor** |   |
|                                                                                            |   | **Nine                Months**   |   |   | **Period                from** |   |   | **Period                from** |   |
|                                                                                            |   | **Ended**                        |   |   | **February                1** |   |   | **January                1** |   |
|                                                                                            |   | **September                30,** |   |   | **to                September 30,** |   |   | **to                January 31,** |   |
|                                                                                            |   | **2007**                         |   |   | **2006** |   |   | **2006** |   |
| Operating                revenues:                                                              |   |                             |   |   |   |   |   |   |   |
|  Passenger                - United Airlines                                                |   | $                                | 11,457 |   |   | $ | 9,904 |   |   | $ | 1,074 |   |
|  Passenger                - Regional Affiliates                                            |   |                             | 2,298  |   |   |   | 1,999 |   |   |   | 204 |   |
|  Cargo                                                                                     |   |                             | 547    |   |   |   | 501 |   |   |   | 56 |   |
|  Special                operating items (Note 2)                                           |   |                             | 45     |   |   |   | - |   |   |   | - |   |
|      Other              operating revenues                             |   |                             | 766    |   |   |   | 892 |   |   |   | 124 |   |
|                                                                                            |   |                             | 15,113 |   |   |   | 13,296 |   |   |   | 1,458 |   |
|  Operating                expenses:                                                        |   |                             |   |   |   |   |   |   |   |   |   |   |
|  Aircraft                fuel                                                              |   |                             | 3,571  |   |   |   | 3,323 |   |   |   | 362 |   |
|  Salaries                and related costs                                                 |   |                             | 3,149  |   |   |   | 2,857 |   |   |   | 358 |   |
|  Regional                affiliates                                                        |   |                             | 2,176  |   |   |   | 1,896 |   |   |   | 228 |   |
|  Purchased                services                                                         |   |                             | 980    |   |   |   | 829 |   |   |   | 98 |   |
|  Aircraft                maintenance materials and outside repairs                         |   |                             | 860    |   |   |   | 688 |   |   |   | 80 |   |
|  Depreciation                and amortization                                              |   |                             | 694    |   |   |   | 592 |   |   |   | 68 |   |
|  Landing                fees and other rent                                                |   |                             | 654    |   |   |   | 569 |   |   |   | 75 |   |
|  Distribution                expenses (Note 1)                                             |   |                             | 596    |   |   |   | 564 |   |   |   | 60 |   |
|  Aircraft                rent                                                              |   |                             | 307    |   |   |   | 288 |   |   |   | 30 |   |
|  Cost                of third party sales                                                  |   |                             | 238    |   |   |   | 471 |   |   |   | 65 |   |
|  Special                operating items (Note 2)                                           |   |                             | (44    | )      |   |   | (30 | ) |   |   | - |   |
|  Other                operating expenses                                                   |   |                             | 831    |   |   |   | 773 |   |   |   | 86 |   |
|                                                                                            |   |                             | 14,012 |   |   |   | 12,820 |   |   |   | 1,510 |   |
|                                                                                            |   |                             |   |   |   |   |   |   |   |   |   |   |
| Earnings                (loss) from operations                                                  |   |                             | 1,101  |   |   |   | 476 |   |   |   | (52 | ) |
|                                                                                            |   |                             |   |   |   |   |   |   |   |   |   |   |
| Other                income (expense):                                                          |   |                             |   |   |   |   |   |   |   |   |   |   |
| Interest                expense (Note 11)                                                       |   |                             | (506   | )      |   |   | (516 | ) |   |   | (42 | ) |
| Interest                income                                                                  |   |                             | 191    |   |   |   | 167 |   |   |   | 6 |   |
| Interest                capitalized                                                             |   |                             | 14     |   |   |   | 10 |   |   |   | - |   |
| Miscellaneous,                net                                                               |   |                             | (7     | )      |   |   | 5 |   |   |   | - |   |
|                                                                                            |   |                             | (308   | )      |   |   | (334 | ) |   |   | (36 | ) |
|                                                                                            |   |                             |   |   |   |   |   |   |   |   |   |   |
| Earnings                (loss) before reorganization items, income                              |   |                             |   |   |   |   |   |   |   |   |   |   |
| taxes                and equity in earnings of affiliates                                       |   |                             | 793    |   |   |   | 142 |   |   |   | (88 | ) |
| Reorganization                items, net                                                        |   |                             | -      |   |   |   | - |   |   |   | 22,934 |   |
|                                                                                            |   |                             |   |   |   |   |   |   |   |   |   |   |
| Earnings                before income taxes and equity in                                       |   |                             |   |   |   |   |   |   |   |   |   |   |
| earnings                of affiliates                                                           |   |                             | 793    |   |   |   | 142 |   |   |   | 22,846 |   |
| Income                tax expense                                                               |   |                             | 340    |   |   |   | 60 |   |   |   | - |   |
|                                                                                            |   |                             |   |   |   |   |   |   |   |   |   |   |
| Earnings                before equity in earnings of affiliates                                 |   |                             | 453    |   |   |   | 82 |   |   |   | 22,846 |   |
| Equity                in earnings of affiliates, net of tax                                     |   |                             | 3      |   |   |   | 4 |   |   |   | 5 |   |
| Net                income                                                                       |   | $                                | 456    |   |   | $ | 86 |   |   | $ | 22,851 |   |
|                                                                                            |   |                             |   |   |   |   |   |   |   |   |   |   |
| Earnings                per share, basic                                                        |   | $                                | 3.82   |   |   | $ | 0.69 |   |   | $ | 196.61 |   |
| Earnings                per share, diluted                                                      |   | $                                | 3.10   |   |   | $ | 0.68 |   |   | $ | 196.61 |   |
|                                                                                            |   |                             |   |   |   |   |   |   |   |   |   |   |

*Combined Notes to Condensed Consolidated Financial Statements      (Unaudited).*

----

**UAL      Corporation and Subsidiary Companies**

***Condensed      Statements of Consolidated Financial Position (Unaudited)***

**(In      millions, except shares)**

|                                                                                              |   | **September                30,** |   |   | **December 31,** |   |
|---------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|--------|-----------------------|--------|
|                                                                                              |   | **2007**                         |   |   | **2006**              |   |
| *Assets*                                                                                          |   |                             |   |   |                  |   |
| Current                assets:                                                                    |   |                             |   |   |                  |   |
| Cash                and cash equivalents                                                          |   | $                                | 1,263  |   |                  | $      | 3,832 |   |
| Short-term                investments                                                             |   |                             | 2,899  |   |                  |   | 312 |   |
| Restricted                cash                                                                    |   |                             | 341    |   |                  |   | 341 |   |
| Receivables,                less allowance for doubtful accounts (2007—$29; 2006—$27) |   |                             | 1,095  |   |                  |   | 820 |   |
| Prepaid                fuel                                                                       |   |                             | 418    |   |                  |   | 283 |   |
| Aircraft                fuel, spare parts and supplies, less                                      |   |                             |   |   |                  |   |   |   |
| obsolescence                allowance (2007—$22; 2006—$6)                             |   |                             | 230    |   |                  |   | 218 |   |
| Deferred                income taxes                                                              |   |                             | 77     |   |                  |   | 122 |   |
| Prepaid                expenses and other                                                         |   |                             | 643    |   |                  |   | 345 |   |
|                                                                                              |   |                             | 6,966  |   |                  |   | 6,273 |   |
| Operating                property and equipment:                                                  |   |                             |   |   |                  |   |   |   |
| Owned—                                                                                      |   |                             |   |   |                  |   |   |   |
| Flight                equipment                                                                   |   |                             | 9,212  |   |                  |   | 8,958 |   |
| Advances                on flight equipment                                                       |   |                             | 103    |   |                  |   | 103 |   |
| Other                property and equipment                                                       |   |                             | 1,536  |   |                  |   | 1,441 |   |
|                                                                                              |   |                             | 10,851 |   |                  |   | 10,502 |   |
| Less—accumulated                depreciation and amortization                               |   |                             | (918   | )      |                  |   | (503 | ) |
|                                                                                              |   |                             | 9,933  |   |                  |   | 9,999 |   |
| Capital                leases:                                                                    |   |                             |   |   |                  |   |   |   |
| Flight                equipment                                                                   |   |                             | 1,512  |   |                  |   | 1,511 |   |
| Other                property and equipment                                                       |   |                             | 34     |   |                  |   | 34 |   |
|                                                                                              |   |                             | 1,546  |   |                  |   | 1,545 |   |
| Less—accumulated                amortization                                                |   |                             | (151   | )      |                  |   | (81 | ) |
|                                                                                              |   |                             | 1,395  |   |                  |   | 1,464 |   |
|                                                                                              |   |                             | 11,328 |   |                  |   | 11,463 |   |
| Other                assets:                                                                      |   |                             |   |   |                  |   |   |   |
| Intangibles,                less accumulated amortization (2007—$285; 2006—$169)      |   |                             | 2,912  |   |                  |   | 3,028 |   |
| Goodwill                                                                                          |   |                             | 2,695  |   |                  |   | 2,703 |   |
| Restricted                cash                                                                    |   |                             | 447    |   |                  |   | 506 |   |
| Aircraft                lease deposits                                                            |   |                             | 327    |   |                  |   | 539 |   |
| Investments                                                                                       |   |                             | 194    |   |                  |   | 113 |   |
| Other,                net                                                                         |   |                             | 739    |   |                  |   | 744 |   |
|                                                                                              |   |                             | 7,314  |   |                  |   | 7,633 |   |
|                                                                                              |   | $                                | 25,608 |   |                  | $      | 25,369 |   |

*Combined Notes to Condensed Consolidated Financial Statements      (Unaudited).*

----

**UAL      Corporation and Subsidiary Companies**

***Condensed      Statements of Consolidated Financial Position      (Unaudited)***

**(In      millions, except shares)**

|                                                                                                                                                                                                                                        |   | **September                30,** |    |   | **December 31,** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|---------|--------|-----------------------|--------|
|                                                                                                                                                                                                                                        |   | **2007**                         |    |   | **2006**              |   |
| *Liabilities                and Stockholders’ Equity*                                                                                                                                                                                 |   |                             |    |   |                  |   |
| Current                liabilities:                                                                                                                                                                                                         |   |                             |    |   |                  |   |
| Advance                ticket sales                                                                                                                                                                                                         |   | $                                | 2,246   |   |                  | $      | 1,669 |   |
| Mileage                Plus deferred revenue                                                                                                                                                                                                |   |                             | 1,201   |   |                  |   | 1,111 |   |
| Accounts                payable                                                                                                                                                                                                             |   |                             | 830     |   |                  |   | 667 |   |
| Accrued                salaries, wages and benefits                                                                                                                                                                                         |   |                             | 823     |   |                  |   | 795 |   |
| Advanced                purchase of miles                                                                                                                                                                                                   |   |                             | 708     |   |                  |   | 681 |   |
| Long-term                debt maturing within one year (Note 11)                                                                                                                                                                            |   |                             | 654     |   |                  |   | 1,687 |   |
| Fuel                purchase commitments                                                                                                                                                                                                    |   |                             | 418     |   |                  |   | 283 |   |
| Current                obligations under capital leases                                                                                                                                                                                     |   |                             | 319     |   |                  |   | 110 |   |
| Accrued                interest                                                                                                                                                                                                             |   |                             | 162     |   |                  |   | 241 |   |
| Other                                                                                                                                                                                                                                       |   |                             | 498     |   |                  |   | 701 |   |
|                                                                                                                                                                                                                                        |   |                             | 7,859   |   |                  |   | 7,945 |   |
|                                                                                                                                                                                                                                        |   |                             |    |   |                  |   |   |   |
| Long-term                debt (Note 11)                                                                                                                                                                                                     |   |                             | 7,027   |   |                  |   | 7,453 |   |
| Long-term                obligations under capital leases                                                                                                                                                                                   |   |                             | 1,129   |   |                  |   | 1,350 |   |
| Other                liabilities and deferred credits:                                                                                                                                                                                      |   |                             |    |   |                  |   |   |   |
| Mileage                Plus deferred revenue                                                                                                                                                                                                |   |                             | 2,666   |   |                  |   | 2,569 |   |
| Postretirement                benefit liability                                                                                                                                                                                             |   |                             | 1,934   |   |                  |   | 1,955 |   |
| Deferred                income taxes                                                                                                                                                                                                        |   |                             | 1,048   |   |                  |   | 688 |   |
| Deferred                pension liability                                                                                                                                                                                                   |   |                             | 137     |   |                  |   | 130 |   |
| Other                                                                                                                                                                                                                                       |   |                             | 802     |   |                  |   | 770 |   |
|                                                                                                                                                                                                                                        |   |                             | 6,587   |   |                  |   | 6,112 |   |
| Mandatorily                convertible preferred securities                                                                                                                                                                                 |   |                             | 366     |   |                  |   | 361 |   |
| Commitments                and contingent liabilities (Note 13)                                                                                                                                                                             |   |                             |    |   |                  |   |   |   |
|                                                                                                                                                                                                                                        |   |                             |    |   |                  |   |   |   |
| Stockholders’                equity:                                                                                                                                                                                                  |   |                             |    |   |                  |   |   |   |
| Preferred                stock                                                                                                                                                                                                              |   |                             | — |   |                  |   | — |   |
| Common                stock at par, $0.01 par value; authorized 1,000,000,000 shares;                outstanding 116,035,322 and 112,280,629 shares at September 30, 2007                and December 31, 2006, respectively |   |                             | 1       |   |                  |   | 1 |   |
| Additional                capital invested                                                                                                                                                                                                  |   |                             | 2,122   |   |                  |   | 2,053 |   |
| Retained                earnings                                                                                                                                                                                                            |   |                             | 467     |   |                  |   | 16 |   |
| Stock                held in treasury, at cost (Note 4)                                                                                                                                                                                     |   |                             | (15     | )      |                  |   | (4 | ) |
| Accumulated                other comprehensive income                                                                                                                                                                                       |   |                             | 65      |   |                  |   | 82 |   |
|                                                                                                                                                                                                                                        |   |                             | 2,640   |   |                  |   | 2,148 |   |
|                                                                                                                                                                                                                                        |   | $                                | 25,608  |   |                  | $      | 25,369 |   |

*Combined Notes to Condensed Consolidated Financial Statements      (Unaudited).*

----

**UAL      Corporation and Subsidiary Companies**

***Condensed      Statements of Consolidated Cash Flows (Unaudited)***

**(In      millions)**

|                                                                                                              |   | **Successor**                                                           |    |   | **Predecessor**                                                                 |   |
|-------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------|---------|--------|---------------------------------------------------------------------------------|--------|
|                                                                                                              |   | **Nine                Months****Ended****September                30,** |    |   | **Period from****February 1 to****September                30,** |   |   | **Period from****January 1 to****January 31,** |   |
|                                                                                                              |   | **2007**                                                                |    |   | **2006**                                                                        |   |   | **2006** |   |
| Cash                flows provided (used) by operating activities:                                                |   |                                                                    |    |   |                                                                            |   |   |   |   |
| Net                income (loss) before reorganization items                                                      |   | $                                                                       | 456     |   |                                                                            | $      | 86 |   |   | $ | (83 | ) |
| Adjustments                to reconcile to net cash provided (used) by operating                activities— |   |                                                                    |    |   |                                                                            |   |   |   |   |   |   |   |
| Increase                in advance ticket sales                                                                   |   |                                                                    | 577     |   |                                                                            |   | 339 |   |   |   | 109 |   |
| Increase                in deferred income taxes                                                                  |   |                                                                    | 364     |   |                                                                            |   | 60 |   |   |   | - |   |
| Increase                in receivables                                                                            |   |                                                                    | (269    | )      |                                                                            |   | (95 | ) |   |   | (88 | ) |
| Depreciation                and amortization                                                                      |   |                                                                    | 694     |   |                                                                            |   | 592 |   |   |   | 68 |   |
| Mileage                Plus deferred revenue and advanced purchase of miles                                       |   |                                                                    | 214     |   |                                                                            |   | 153 |   |   |   | 14 |   |
| Other,                net                                                                                         |   |                                                                    | (34     | )      |                                                                            |   | (27 | ) |   |   | 141 |   |
|                                                                                                              |   |                                                                    | 2,002   |   |                                                                            |   | 1,108 |   |   |   | 161 |   |
| Cash                flows provided (used) by reorganization activities:                                           |   |                                                                    |    |   |                                                                            |   |   |   |   |   |   |   |
| Reorganization                items, net                                                                          |   |                                                                    | — |   |                                                                            |   | — |   |   |   | 22,934 |   |
| Increase                in other liabilities                                                                      |   |                                                                    | — |   |                                                                            |   | — |   |   |   | 37 |   |
| Increase                in non-aircraft claims accrual                                                            |   |                                                                    | — |   |                                                                            |   | — |   |   |   | 429 |   |
| Discharge                of claims and liabilities                                                                |   |                                                                    | — |   |                                                                            |   | — |   |   |   | (24,628 | ) |
| Revaluation                of Mileage Plus frequent flyer deferred revenue                                        |   |                                                                    | — |   |                                                                            |   | — |   |   |   | 2,399 |   |
| Revaluation                of other assets and liabilities                                                        |   |                                                                    | — |   |                                                                            |   | — |   |   |   | (2,106 | ) |
| Pension                curtailment, settlement and employee claims                                                |   |                                                                    | — |   |                                                                            |   | — |   |   |   | 912 |   |
|                                                                                                              |   |                                                                    | — |   |                                                                            |   | — |   |   |   | (23 | ) |
| Cash                flows provided (used) by investing activities:                                                |   |                                                                    |    |   |                                                                            |   |   |   |   |   |   |   |
| Net                (purchases) sales of short-term investments                                                    |   |                                                                    | (2,587  | )      |                                                                            |   | 72 |   |   |   | 2 |   |
| Purchases                of EETC securities (Notes 1 and 11)                                                      |   |                                                                    | (76     | )      |                                                                            |   | — |   |   |   | — |   |
| Additions                to property and equipment                                                                |   |                                                                    | (428    | )      |                                                                            |   | (222 | ) |   |   | (30 | ) |
| (Increase)                decrease in restricted cash                                                             |   |                                                                    | 59      |   |                                                                            |   | 300 |   |   |   | (203 | ) |
| Decrease                in segregated funds                                                                       |   |                                                                    | — |   |                                                                            |   | 200 |   |   |   | — |   |
| Other,                net                                                                                         |   |                                                                    | (25     | )      |                                                                            |   | 39 |   |   |   | (7 | ) |
|                                                                                                              |   |                                                                    | (3,057  | )      |                                                                            |   | 389 |   |   |   | (238 | ) |
| Cash                flows provided (used) by financing activities:                                                |   |                                                                    |    |   |                                                                            |   |   |   |   |   |   |   |
| Proceeds                from secured notes                                                                        |   |                                                                    | 694     |   |                                                                            |   | — |   |   |   | — |   |
| Proceeds                from Credit Facility                                                                      |   |                                                                    | — |   |                                                                            |   | 2,961 |   |   |   | — |   |
| Repayment                of Credit Facility                                                                       |   |                                                                    | (995    | )      |                                                                            |   | (175 | ) |   |   | — |   |
| Repayment                of DIP Financing                                                                         |   |                                                                    | — |   |                                                                            |   | (1,157 | ) |   |   | — |   |
| Repayment                of other long-term debt                                                                  |   |                                                                    | (1,149  | )      |                                                                            |   | (545 | ) |   |   | (24 | ) |
| Principal                payments under capital leases                                                            |   |                                                                    | (60     | )      |                                                                            |   | (66 | ) |   |   | (5 | ) |
| Other,                net                                                                                         |   |                                                                    | (4      | )      |                                                                            |   | (65 | ) |   |   | (1 | ) |
|                                                                                                              |   |                                                                    | (1,514  | )      |                                                                            |   | 953 |   |   |   | (30 | ) |
| Increase                (decrease) in cash and cash equivalents during the period                                 |   |                                                                    | (2,569  | )      |                                                                            |   | 2,450 |   |   |   | (130 | ) |
| Cash                and cash equivalents at beginning of the period                                               |   |                                                                    | 3,832   |   |                                                                            |   | 1,631 |   |   |   | 1,761 |   |
| Cash                and cash equivalents at end of the period                                                     |   | $                                                                       | 1,263   |   |                                                                            | $      | 4,081 |   |   | $ | 1,631 |   |

*Combined Notes to Condensed Consolidated Financial Statements      (Unaudited).*

----

| **United                Air Lines, Inc. and Subsidiary Companies**                              |   |
|-------------------------------------------------------------------------------------------------|--------|
| ***Condensed                Statements of Consolidated Operations                (Unaudited)*** |   |
| **(In                millions)**                                                                |   |
|                                                                                            |   |   |   |   |   |   |
|                                                                                            |   |   |   |
|                                                                                            |   | **Three                Months Ended September 30,** |   |
|                                                                                            |   | **2007** |   |   | **2006** |   |
| Operating                revenues:                                                              |   |   |   |   |   |   |
| Passenger                - United Airlines                                                      |   | $ | 4,225 |   |   | $ | 3,916 |   |
| Passenger                - Regional Affiliates                                                  |   |   | 819 |   |   |   | 773 |   |
| Cargo                                                                                           |   |   | 198 |   |   |   | 183 |   |
| Special                operating items (Note 2)                                                 |   |   | 45 |   |   |   | - |   |
|      Other operating              revenues                   |   |   | 243 |   |   |   | 304 |   |
|                                                                                            |   |   | 5,530 |   |   |   | 5,176 |   |
| Operating                expenses:                                                              |   |   |   |   |   |   |   |   |
| Aircraft                fuel                                                                    |   |   | 1,324 |   |   |   | 1,368 |   |
| Salaries                and related costs                                                       |   |   | 1,059 |   |   |   | 1,059 |   |
| Regional                affiliates                                                              |   |   | 751 |   |   |   | 713 |   |
| Purchased                services                                                               |   |   | 344 |   |   |   | 301 |   |
| Aircraft                maintenance materials and outside repairs                               |   |   | 295 |   |   |   | 252 |   |
| Depreciation                and amortization                                                    |   |   | 245 |   |   |   | 225 |   |
| Distribution                expenses (Note 1)                                                   |   |   | 211 |   |   |   | 215 |   |
| Landing                fees and other rent                                                      |   |   | 201 |   |   |   | 199 |   |
| Aircraft                rent                                                                    |   |   | 102 |   |   |   | 104 |   |
| Cost                of third party sales                                                        |   |   | 67 |   |   |   | 150 |   |
| Special                operating items (Note 2)                                                 |   |   | (22 | ) |   |   | (30 | ) |
| Other                operating expenses                                                         |   |   | 291 |   |   |   | 281 |   |
|                                                                                            |   |   | 4,868 |   |   |   | 4,837 |   |
|                                                                                            |   |   |   |   |   |   |   |   |
| Earnings                from operations                                                         |   |   | 662 |   |   |   | 339 |   |
|                                                                                            |   |   |   |   |   |   |   |   |
| Other                income (expense):                                                          |   |   |   |   |   |   |   |   |
| Interest                expense                                                                 |   |   | (161 | ) |   |   | (165 | ) |
| Interest                income                                                                  |   |   | 70 |   |   |   | 79 |   |
| Interest                capitalized                                                             |   |   | 5 |   |   |   | 3 |   |
| Miscellaneous,                net                                                               |   |   | (6 | ) |   |   | 3 |   |
|                                                                                            |   |   | (92 | ) |   |   | (80 | ) |
|                                                                                            |   |   |   |   |   |   |   |   |
| Earnings                before income taxes and equity in earnings                              |   |   |   |   |   |   |   |   |
| of                affiliates                                                                    |   |   | 570 |   |   |   | 259 |   |
| Income                tax expense                                                               |   |   | 234 |   |   |   | 65 |   |
|                                                                                            |   |   |   |   |   |   |   |   |
| Earnings                before equity in earnings of affiliates                                 |   |   | 336 |   |   |   | 194 |   |
| Equity                in earnings of affiliates, net of tax                                     |   |   | 1 |   |   |   | 1 |   |
| Net                income                                                                       |   | $ | 337 |   |   | $ | 195 |   |
|                                                                                            |   |   |   |   |   |   |   |   |

*Combined Notes to Condensed Consolidated Financial Statements      (Unaudited)*

----

**United      Air Lines, Inc. and Subsidiary Companies**

***Condensed      Statements of Consolidated Operations (Unaudited)***

**(In      millions)**

|                                                                |   | **Successor**                    |   |   | **Successor**                       |   |   | **Predecessor**                   |   |
|---------------------------------------------------------------------|--------|----------------------------------|--------|--------|-------------------------------------|--------|--------|-----------------------------------|--------|
|                                                                |   | **Nine                Months**   |   |   | **Period                from**      |   |   | **Period                from**    |   |
|                                                                |   | **Ended**                        |   |   | **February                1**       |   |   | **January                1**      |   |
|                                                                |   | **September                30,** |   |   | **to                September 30,** |   |   | **to                January 31,** |   |
|                                                                |   | **2007**                         |   |   | **2006**                            |   |   | **2006**                          |   |
| Operating                revenues:                                  |   |                             |   |   |                                |   |   |                              |   |
| Passenger                - United Airlines                          |   | $                                | 11,457 |   |                                | $      | 9,904  |                              |   | $ | 1,074 |   |
| Passenger                - Regional Affiliates                      |   |                             | 2,298  |   |                                |   | 1,999  |                              |   |   | 204 |   |
| Cargo                                                               |   |                             | 547    |   |                                |   | 501    |                              |   |   | 56 |   |
| Special                operating items (Note 2)                     |   |                             | 45     |   |                                |   | -      |                              |   |   | - |   |
|     Other              operating revenues  |   |                             | 776    |   |                                |   | 889    |                              |   |   | 120 |   |
|                                                                |   |                             | 15,123 |   |                                |   | 13,293 |                              |   |   | 1,454 |   |
| Operating                expenses:                                  |   |                             |   |   |                                |   |   |                              |   |   |   |   |
| Aircraft                fuel                                        |   |                             | 3,571  |   |                                |   | 3,323  |                              |   |   | 362 |   |
| Salaries                and related costs                           |   |                             | 3,145  |   |                                |   | 2,854  |                              |   |   | 358 |   |
| Regional                affiliates                                  |   |                             | 2,176  |   |                                |   | 1,896  |                              |   |   | 228 |   |
| Purchased                services                                   |   |                             | 980    |   |                                |   | 828    |                              |   |   | 97 |   |
| Aircraft                maintenance materials and outside repairs   |   |                             | 860    |   |                                |   | 688    |                              |   |   | 80 |   |
| Depreciation                and amortization                        |   |                             | 694    |   |                                |   | 591    |                              |   |   | 68 |   |
| Landing                fees and other rent                          |   |                             | 654    |   |                                |   | 569    |                              |   |   | 75 |   |
| Distribution                expenses (Note 1)                       |   |                             | 596    |   |                                |   | 564    |                              |   |   | 60 |   |
| Aircraft                rent                                        |   |                             | 308    |   |                                |   | 289    |                              |   |   | 30 |   |
| Cost                of third party sales                            |   |                             | 235    |   |                                |   | 464    |                              |   |   | 63 |   |
| Special                operating items (Note 2)                |   |                             | (44    | )      |                                |   | (30    | )                                 |   |   | - |   |
| Other                operating expenses                             |   |                             | 831    |   |                                |   | 771    |                              |   |   | 85 |   |
|                                                                |   |                             | 14,006 |   |                                |   | 12,807 |                              |   |   | 1,506 |   |
|                                                                |   |                             |   |   |                                |   |   |                              |   |   |   |   |
| Earnings                (loss) from operations                      |   |                             | 1,117  |   |                                |   | 486    |                              |   |   | (52 | ) |
|                                                                |   |                             |   |   |                                |   |   |                              |   |   |   |   |
| Other                income (expense):                              |   |                             |   |   |                                |   |   |                              |   |   |   |   |
| Interest                expense (Note 11)                           |   |                             | (506   | )      |                                |   | (518   | )                                 |   |   | (42 | ) |
| Interest                income                                      |   |                             | 194    |   |                                |   | 172    |                              |   |   | 6 |   |
| Interest                capitalized                                 |   |                             | 14     |   |                                |   | 10     |                              |   |   | - |   |
| Miscellaneous,                net                                   |   |                             | (7     | )      |                                |   | 2      |                              |   |   | - |   |
|                                                                |   |                             | (305   | )      |                                |   | (334   | )                                 |   |   | (36 | ) |
|                                                                |   |                             |   |   |                                |   |   |                              |   |   |   |   |
| Earnings                (loss) before reorganization items, income  |   |                             |   |   |                                |   |   |                              |   |   |   |   |
| taxes                and equity in earnings of affiliates           |   |                             | 812    |   |                                |   | 152    |                              |   |   | (88 | ) |
| Reorganization                items, net                            |   |                             | -      |   |                                |   | -      |                              |   |   | 22,709 |   |
|                                                                |   |                             |   |   |                                |   |   |                              |   |   |   |   |
| Earnings                before income taxes and equity in           |   |                             |   |   |                                |   |   |                              |   |   |   |   |
| earnings                of affiliates                               |   |                             | 812    |   |                                |   | 152    |                              |   |   | 22,621 |   |
| Income                tax expense                                   |   |                             | 348    |   |                                |   | 65     |                              |   |   | - |   |
|                                                                |   |                             |   |   |                                |   |   |                              |   |   |   |   |
| Earnings                before equity in earnings of affiliates     |   |                             | 464    |   |                                |   | 87     |                              |   |   | 22,621 |   |
| Equity                in earnings of affiliates, net of tax         |   |                             | 3      |   |                                |   | 4      |                              |   |   | 5 |   |
| Net                income                                           |   | $                                | 467    |   |                                | $      | 91     |                              |   | $ | 22,626 |   |

*Combined Notes to Condensed Consolidated Financial Statements      (Unaudited)*

----

**United      Air Lines, Inc. and Subsidiary Companies**

***Condensed      Statements of Consolidated Financial Position      (Unaudited)***

**(In      millions, except shares)**

|                                                            |                                   |   |                             |   |   |                            |   |
|-----------------------------------------------------------------|----------------------------------------|--------|----------------------------------|--------|--------|---------------------------------|--------|
|                                                            |                                   |   | **September                30,** |   |   | **December                31,** |   |
|                                                            |                                   |   | **2007**                         |   |   | **2006**                        |   |
| *Assets*                                                        |                                   |   |                             |   |   |                            |   |
| Current                assets:                                  |                                   |   |                             |   |   |                            |   |
| Cash                and cash equivalents                        |                                   |   | $                                | 1,246  |   |                            | $      | 3,779 |   |
| Short-term                investments                           |                                   |   |                             | 2,860  |   |                            |   | 308 |   |
| Restricted                cash                                  |                                   |   |                             | 308    |   |                            |   | 303 |   |
| Receivables,                less allowance for doubtful         |                                   |   |                             |   |   |                            |   |   |   |
| accounts                (2007 - $29; 2006 - $27)                |                                   |   |                             | 1,087  |   |                            |   | 814 |   |
| Prepaid                fuel                                     |                                   |   |                             | 418    |   |                            |   | 283 |   |
| Aircraft                fuel, spare parts and supplies, less    |                                   |   |                             |   |   |                            |   |   |   |
| obsolescence                allowance (2007 - $22; 2006 - $6)   |                                   |   |                             | 230    |   |                            |   | 218 |   |
| Receivables                from related parties                 |                                   |   |                             | 168    |   |                            |   | 154 |   |
| Deferred                income taxes                            |                                   |   |                             | 70     |   |                            |   | 114 |   |
| Prepaid                expenses and other                       |                                   |   |                             | 639    |   |                            |   | 348 |   |
|                                                            |                                   |   |                             | 7,026  |   |                            |   | 6,321 |   |
| Operating                property and equipment:                |                                   |   |                             |   |   |                            |   |   |   |
| Owned                -                                          |                                   |   |                             |   |   |                            |   |   |   |
| Flight                equipment                                 |                                   |   |                             | 9,206  |   |                            |   | 8,952 |   |
| Advances                on flight equipment                     |                                   |   |                             | 91     |   |                            |   | 91 |   |
| Other                property and equipment                     |                                   |   |                             | 1,536  |   |                            |   | 1,441 |   |
|                                                            |                                   |   |                             | 10,833 |   |                            |   | 10,484 |   |
| Less                - accumulated depreciation and amortization |                                   |   |                             | (917   | )      |                            |   | (502 | ) |
|                                                            |                                   |   |                             | 9,916  |   |                            |   | 9,982 |   |
| Capital                leases:                                  |                                   |   |                             |   |   |                            |   |   |   |
| Flight                equipment                                 |                                   |   |                             | 1,512  |   |                            |   | 1,511 |   |
| Other                property and equipment                     |                                   |   |                             | 34     |   |                            |   | 34 |   |
|                                                            |                                   |   |                             | 1,546  |   |                            |   | 1,545 |   |
| Less                - accumulated amortization                  |                                   |   |                             | (151   | )      |                            |   | (81 | ) |
|                                                            |                                   |   |                             | 1,395  |   |                            |   | 1,464 |   |
|                                                            |                                   |   |                             | 11,311 |   |                            |   | 11,446 |   |
| Other                assets:                                    |                                   |   |                             |   |   |                            |   |   |   |
| Intangibles,                less accumulated amortization       |                                   |   |                             |   |   |                            |   |   |   |
|                                                            | (2007-                $285; 2006-$169) |   |                             |   | 2,912  |                            |   |   | 3,028 |   |
| Goodwill                                                        |                                   |   |                             | 2,695  |   |                            |   | 2,703 |   |
| Restricted                cash                                  |                                   |   |                             | 447    |   |                            |   | 506 |   |
| Aircraft                lease deposits                          |                                   |   |                             | 327    |   |                            |   | 539 |   |
| Investments                                                     |                                   |   |                             | 194    |   |                            |   | 113 |   |
| Note                receivable from affiliate                   |                                   |   |                             | -      |   |                            |   | 201 |   |
| Other,                net                                       |                                   |   |                             | 726    |   |                            |   | 724 |   |
|                                                            |                                   |   |                             |   | 7,301  |                            |   |   | 7,814 |   |
|                                                            |                                   |   |                             | $      | 25,638 |                            |   | $ | 25,581 |   |

*Combined Notes to Condensed Consolidated Financial Statements      (Unaudited)*

----

**United      Air Lines, Inc. and Subsidiary Companies**

***Condensed      Statements of Consolidated Financial Position      (Unaudited)***

**(In      millions, except shares)**

|                                                                                                                                                                                        |   |                             |   |   |                            |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|--------|---------------------------------|--------|
|                                                                                                                                                                                        |   | **September                30,** |   |   | **December                31,** |   |
|                                                                                                                                                                                        |   | **2007**                         |   |   | **2006**                        |   |
| *Liabilities                and Stockholder’s Equity*                                                                                                                                 |   |                             |   |   |                            |   |
| Current                liabilities:                                                                                                                                                         |   |                             |   |   |                            |   |
|    Advance                ticket sales                                                                                                                                       |   | $                                | 2,246  |   |                            | $      | 1,669 |   |
|    Mileage                Plus deferred revenue                                                                                                                              |   |                             | 1,201  |   |                            |   | 1,111 |   |
|    Accounts                payable                                                                                                                                           |   |                             | 832    |   |                            |   | 671 |   |
|    Accrued                salaries, wages and benefits                                                                                                                       |   |                             | 823    |   |                            |   | 795 |   |
|    Advanced                purchase of miles                                                                                                                                 |   |                             | 708    |   |                            |   | 681 |   |
|    Long-term                debt maturing within one year (Note 11)                                                                                                          |   |                             | 654    |   |                            |   | 1,687 |   |
|    Fuel                purchase commitments                                                                                                                                  |   |                             | 418    |   |                            |   | 283 |   |
|    Current                obligations under capital leases                                                                                                                   |   |                             | 319    |   |                            |   | 110 |   |
|    Accrued                interest                                                                                                                                           |   |                             | 163    |   |                            |   | 241 |   |
|    Accounts                payable to affiliates                                                                                                                             |   |                             | 6      |   |                            |   | 2 |   |
|    Other                                                                                                                                                                     |   |                             | 710    |   |                            |   | 920 |   |
|                                                                                                                                                                                        |   |                             | 8,080  |   |                            |   | 8,170 |   |
|                                                                                                                                                                                        |   |                             |   |   |                            |   |   |   |
| Long-term                debt (Note 11)                                                                                                                                                     |   |                             | 7,026  |   |                            |   | 7,449 |   |
| Long-term                obligations under capital leases                                                                                                                                   |   |                             | 1,129  |   |                            |   | 1,350 |   |
|                                                                                                                                                                                        |   |                             |   |   |                            |   |   |   |
| Other                liabilities and deferred credits:                                                                                                                                      |   |                             |   |   |                            |   |   |   |
|    Mileage                Plus deferred revenue                                                                                                                              |   |                             | 2,666  |   |                            |   | 2,569 |   |
|    Postretirement                benefit liability                                                                                                                           |   |                             | 1,934  |   |                            |   | 1,955 |   |
|    Deferred                income taxes                                                                                                                                      |   |                             | 966    |   |                            |   | 596 |   |
|    Deferred                pension liability                                                                                                                                 |   |                             | 137    |   |                            |   | 130 |   |
|    Other                                                                                                                                                                     |   |                             | 801    |   |                            |   | 769 |   |
|                                                                                                                                                                                        |   |                             | 6,504  |   |                            |   | 6,019 |   |
|                                                                                                                                                                                        |   |                             |   |   |                            |   |   |   |
| Parent                company mandatorily convertible    preferred                securities                                                                            |   |                             | 366    |   |                            |   | 361 |   |
| Commitments                and contingent liabilities (Note 13)                                                                                                                             |   |                             |   |   |                            |   |   |   |
|                                                                                                                                                                                        |   |                             |   |   |                            |   |   |   |
| Stockholder’s                equity:                                                                                                                                                  |   |                             |   |   |                            |   |   |   |
|    Common                stock at par, $5 par value; authorized 1,000 shares; outstanding                205 at both September 30, 2007 and December 31, 2006 |   |                             | -      |   |                            |   | - |   |
|    Additional                capital invested                                                                                                                                |   |                             | 1,981  |   |                            |   | 2,127 |   |
|    Retained                earnings                                                                                                                                          |   |                             | 487    |   |                            |   | 23 |   |
|    Accumulated                other comprehensive income                                                                                                                     |   |                             | 65     |   |                            |   | 82 |   |
|                                                                                                                                                                                        |   |                             | 2,533  |   |                            |   | 2,232 |   |
|                                                                                                                                                                                        |   | $                                | 25,638 |   |                            | $      | 25,581 |   |

*Combined Notes to Condensed Consolidated Financial Statements      (Unaudited)*

----

** United      Air Lines, Inc. and      Subsidiary Companies**

***Condensed      Statements of Consolidated Cash Flows (Unaudited)***

**(In      millions)**

|                                                                                                                  |   | **Successor**                                                                 |   |   | **Predecessor**                                            |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------|--------|
|                                                                                                                  |   | **Nine                Months**** Ended****September                30,** |   |   | **Period                from February 1 to September 30,** |   |   | **Period                from****January                1 to**** January                31,** |   |
|                                                                                                                  |   | **2007**                                                                      |   |   | **2006**                                                   |   |   | **2006** |   |
| Cash                flows provided (used) by operating activities:                                                    |   |                                                                          |   |   |                                                       |   |   |   |   |
|    Net                income (loss) before reorganization items                                        |   | $                                                                             | 467    |   |                                                       | $      | 91 |   |   | $ | (83 | ) |
|    Adjustments                to reconcile to net cash provided (used) by operating                    |   |                                                                          |   |   |                                                       |   |   |   |   |   |   |   |
|      activities                -                                                             |   |                                                                          |   |   |                                                       |   |   |   |   |   |   |   |
|        Increase                in advance ticket sales                             |   |                                                                          | 577    |   |                                                       |   | 339 |   |   |   | 109 |   |
|        Increase                in deferred income taxes                            |   |                                                                          | 372    |   |                                                       |   | 65 |   |   |   | - |   |
|        Increase                in receivables                                      |   |                                                                          | (271   | )      |                                                       |   | (91 | ) |   |   | (98 | ) |
|        Depreciation                and amortization                                |   |                                                                          | 694    |   |                                                       |   | 592 |   |   |   | 68 |   |
|        Mileage                Plus deferred revenue and advanced purchase of miles |   |                                                                          | 214    |   |                                                       |   | 153 |   |   |   | 14 |   |
|        Other,                net                                                   |   |                                                                          | (65    | )      |                                                       |   | (25 | ) |   |   | 153 |   |
|                                                                                                                  |   |                                                                          | 1,988  |   |                                                       |   | 1,124 |   |   |   | 163 |   |
| Cash                flows provided (used) by reorganization activities:                                               |   |                                                                          |   |   |                                                       |   |   |   |   |   |   |   |
|       Reorganization                items, net                                          |   |                                                                          | -      |   |                                                       |   | - |   |   |   | 22,709 |   |
|       Increase                in other liabilities                                      |   |                                                                          | -      |   |                                                       |   | - |   |   |   | 38 |   |
|       Increase                in non-aircraft claims accrual                            |   |                                                                          | -      |   |                                                       |   | - |   |   |   | 421 |   |
|       Discharge                of claims and liabilities                                |   |                                                                          | -      |   |                                                       |   | - |   |   |   | (24,389 | ) |
|       Revaluation                of Mileage Plus frequent flyer deferred revenue        |   |                                                                          | -      |   |                                                       |   | - |   |   |   | 2,399 |   |
|       Revaluation                of other assets and liabilities                        |   |                                                                          | -      |   |                                                       |   | - |   |   |   | (2,111 | ) |
|       Pension                curtailment, settlement and employee claims                |   |                                                                          | -      |   |                                                       |   | - |   |   |   | 912 |   |
|                                                                                                                  |   |                                                                          | -      |   |                                                       |   | - |   |   |   | (21 | ) |
| Cash                flows provided (used) by investing activities:                                                    |   |                                                                          |   |   |                                                       |   |   |   |   |   |   |   |
|       Net                (purchases) sales of short-term investments                    |   |                                                                          | (2,552 | )      |                                                       |   | 72 |   |   |   | 2 |   |
|       Purchases                of EETC securities (Notes 1 and 11)                      |   |                                                                          | (76    | )      |                                                       |   | - |   |   |   | - |   |
|       Additions                to property and equipment                                |   |                                                                          | (428   | )      |                                                       |   | (222 | ) |   |   | (30 | ) |
|       (Increase)                decrease in restricted cash                             |   |                                                                          | 54     |   |                                                       |   | 303 |   |   |   | (203 | ) |
|       Decrease                in segregated funds                                       |   |                                                                          | -      |   |                                                       |   | 200 |   |   |   | - |   |
|       Other,                net                                                         |   |                                                                          | (26    | )      |                                                       |   | (15 | ) |   |   | (7 | ) |
|                                                                                                                  |   |                                                                          | (3,028 | )      |                                                       |   | 338 |   |   |   | (238 | ) |
| Cash                flows provided (used) by financing activities:                                                    |   |                                                                          |   |   |                                                       |   |   |   |   |   |   |   |
|       Proceeds                from secured notes                                        |   |                                                                          | 694    |   |                                                       |   | - |   |   |   | - |   |
|       Proceeds                from Credit Facility                                      |   |                                                                          | -      |   |                                                       |   | 2,961 |   |   |   | - |   |
|       Repayment                of Credit Facility                                       |   |                                                                          | (995   | )      |                                                       |   | (175 | ) |   |   | - |   |
|       Repayment                of DIP Financing                                         |   |                                                                          | -      |   |                                                       |   | (1,157 | ) |   |   | - |   |
|       Repayment                of other long-term debt                                  |   |                                                                          | (1,148 | )      |                                                       |   | (544 | ) |   |   | (24 | ) |
|       Principal                payments under capital leases                            |   |                                                                          | (60    | )      |                                                       |   | (66 | ) |   |   | (5 | ) |
|       Other,                net                                                         |   |                                                                          | 16     |   |                                                       |   | (65 | ) |   |   | (1 | ) |
|                                                                                                                  |   |                                                                          | (1,493 | )      |                                                       |   | 954 |   |   |   | (30 | ) |
| Increase                (decrease) in cash and cash equivalents during the period                                     |   |                                                                          | (2,533 | )      |                                                       |   | 2,416 |   |   |   | (126 | ) |
| Cash                and cash equivalents at beginning of the period                                                   |   |                                                                          | 3,779  |   |                                                       |   | 1,596 |   |   |   | 1,722 |   |
| Cash                and cash equivalents at end of the period                                                         |   | $                                                                             | 1,246  |   |                                                       | $      | 4,012 |   |   | $ | 1,596 |   |

*Combined Notes to Condensed Consolidated Financial Statements      (Unaudited)*

----

**UAL      Corporation and Subsidiary Companies and**

** United      Air Lines, Inc. and Subsidiary Companies**

***Combined      Notes to Condensed Consolidated Financial Statements (Unaudited)***

**(1)      Basis of Presentation**

*Combined Notes to Condensed Consolidated Financial Statements      (Unaudited)*

***Interim      Financial Statements.***
*** ***

***Investments.***
*** ***

***Mileage      Plus Accounting.***
*** ***
*Critical Accounting Policies*

***Reclassifications.***
*** ***

*Condensed Statements of Consolidated Operations (Unaudited)*

----

|                                                                         |   | **Predecessor** |   | **Successor**                                  |   |
|------------------------------------------------------------------------------|--------|-----------------|--------|------------------------------------------------|--------|
| **      2006****(In                millions)** |   |            |   | **January 1 to****January 31,** |   | **Period from****February 1 to****March 31,** |   | **Three Months****Ended****June 30,** |   | **Three Months****Ended****September 30,** |   | **Three Months****Ended****December 31,** |   |
| Commissions                (historical) (a)                                  |   | $               | 24     |                                           |   | $ | 51 |   |   | $ | 82 |   |   | $ | 91 |   |   | $ | 67 |   |   |
| Purchased                services (historical) (b)                           |   |            | 36     |                                           |   |   | 90 |   |   |   | 126 |   |   |   | 124 |   |   |   | 107 |   |   |
| Distribution                expenses (revised)                               |   | $               | 60     |                                           |   | $ | 141 |   |   | $ | 208 |   |   | $ | 215 |   |   | $ | 174 |   |   |

|  | (a) | Commissions                were previously reported as a separate expense item in the UAL and                United                2006 quarterly reports on Form 10-Q and the 2006                Annual Reports. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | Consists                of credit card transaction fees and global distribution systems (“GDS”)                transaction expenses that were classified as components of purchased                services in the UAL and United quarterly reports on Form 10-Q and the                2006 Annual Reports. For 2007 Form 10-Q reporting purposes, the                revised purchased services amounts for the 2006 periods are the result                of                decreasing the amounts previously reported in the UAL and United                2006                quarterly reports on Form 10-Q by these same                adjustments. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Fresh-Start      Reporting.***
*** ***
*Financial Reporting by      Entities in Reorganization under the Bankruptcy Code*
*Condensed Statements of Consolidated Operations (Unaudited)*

**(2)      Voluntary Reorganization Under Chapter 11**

***Bankruptcy      Considerations.***
*www.pd-ual.com*

***Significant      Matters Resolved in Chapter 11 Cases Since Filing the UAL and United Annual      Reports on Form 10-K for the Fiscal Year ended December 31,      2006.***
*** ***

|   | (a) | *Pilot                Plan Termination Order*. In December 2004, the Pension Benefit                Guaranty Corporation (“PBGC”) filed an involuntary termination proceeding                against United, as plan administrator for the United Airlines Pilot                Defined Benefit Pension Plan (the “Pilot Plan”), in the District                Court. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | In                January 2005, the District Court granted a motion filed by United and                referred the involuntary termination proceeding to the Bankruptcy                Court.                Air Line Pilots Association (“ALPA”) and United Retired Pilots Benefit                Protection Association and seven retired pilots (collectively, “URPBPA”)                were later granted leave to intervene in the involuntary termination                proceeding. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

** **
** **

|  | (b) | *Pilot                Plan Non-Qualified Pension Benefits—October 2005 Order.*After                the PBGC commenced its involuntary termination proceeding and sought                a                December 30, 2004 termination date, United suspended payment of                non-qualified pension benefits under the Pilot Plan pending the setting                of                such a termination date. In the first quarter of 2005, the Bankruptcy                Court required United to continue paying non-qualified pension benefits                to                retired pilots pending the outcome of the involuntary termination                proceeding, notwithstanding the possibility that the Pilot Plan might                be                terminated retroactively to December 30, 2004. Then, on                October 6, 2005, despite its oral ruling terminating the Pilot Plan,                the Bankruptcy Court entered an order requiring United to continue                paying                non-qualified pension benefits until entry of a written order. However,                United appealed that order and placed approximately $6 million                necessary to pay non-qualified benefits for the month of October 2005                in a segregated account. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | *Pilot                Plan Non-Qualified Pension Benefits—March 2006 Order*. In                March 2006, in a separate proceeding related to the matter described                in item (b) above, the Bankruptcy Court ruled that United was obligated                to                make payment of all non-qualified pension benefits for the months                of                November and December 2005 and January 2006. The Bankruptcy                Court also ruled that United’s obligation to pay non-qualified pension                benefits ceased as of January 31, 2006. United filed a notice of                appeal of the Bankruptcy Court’s ruling to the District Court. URPBPA and                ALPA also filed notices of appeal with respect to the Bankruptcy                Court’s                order, which were subsequently consolidated with United’s appeal. United                agreed with URPBPA and ALPA to pay, into an escrow account, the disputed                non-qualified pension benefits for the months of November and                December 2005 and January 2006, an aggregate amount totaling                approximately $17 million. The District Court affirmed the Bankruptcy                Court’s ruling in September 2006. United filed a notice of appeal of                the District Court’s ruling to the Court of Appeals. URPBPA and ALPA also                appealed the District Court’s decision. The Company subsequently filed a                motion to consolidate its appeal from the Bankruptcy Court’s                October 2005 non-qualified benefits order with |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | the                three appeals from the Bankruptcy Court’s March 2006 non-qualified                benefits order. The Court of Appeals denied the Company’s motion, but                issued an order staying briefing on the March 2006 non-qualified                benefits order until further order of the Court of Appeals. On                April 19, 2007, the Court of Appeals reversed the March 2006                order and remanded the case with instructions to the District Court                to                enter judgment for entry of an order in United’s favor. The deadline for                filing a petition for a writ of certiorari, July 19, 2007, has passed                without such a petition being filed, which effectively brings this                matter                to conclusion. The $17 million deposit was released from the escrow                account in July 2007. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Significant      Matters Remaining to be Resolved in Chapter 11 Cases.***

|   | (a) | *SFO                Municipal Bond Secured Interest*. HSBC Bank Inc. (“HSBC”), as trustee                for the 1997 municipal bonds related to San Francisco International                Airport (“SFO”), filed a complaint against United asserting a security                interest in United’s leasehold for portions of its maintenance base at                SFO. Pursuant to Section 506(a) of the Bankruptcy Code, HSBC                alleges that it is entitled to be paid the value of that security                interest, which HSBC had claimed was as much as $257 million. HSBC                and United went to trial in April 2006 and the Bankruptcy Court                rejected as a matter of law HSBC’s $257 million claim. HSBC                subsequently alleged that it was entitled to $154 million, or at a                minimum, approximately $93 million. The parties tried the case and                filed post-trial briefs which were heard by the Bankruptcy Court.                In the                third quarter of 2006, the Company recorded a special item of $30                million                as a benefit to income from continuing operations to reduce the Company’s                recorded obligation for the SFO municipal bonds to a revised estimate                of a                probable amount to be allowed by the Bankruptcy Court, in accordance                with                AICPA Practice Bulletin 11, *“Accounting for Preconfirmation                Contingencies in Fresh-Start Reporting”* (“Practice Bulletin 11”). In                October 2006, the Bankruptcy Court issued its written opinion holding                that the value of the security interest is approximately $27 million.                United has accrued this amount as its estimated obligation as of                September                30, 2007. After the Bankruptcy Court denied various post-trial motions,                both parties have appealed to the District Court and those appeals                are                pending. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | *LAX                Municipal Bond Secured Interest*. There is pending litigation before                the Bankruptcy Court regarding the extent to which the Los Angeles                International Airport (“LAX”) municipal bond debt is entitled to secured                status under Section 506(a) of the Bankruptcy Code. At December                31, 2006, United had accrued $60 million for this matter. Trial on                this                matter occurred during April 2007 and the two parties filed                post-trial briefs in the second quarter of 2007. During the first                quarter                of 2007 the Company reduced its accrual for this matter by $19 million.                In                August 2007, the Bankruptcy Court issued its written opinion holding                that                the value of the security interest is approximately $33 million.                During                the third quarter of 2007, United adjusted the accrual for this matter                to                $33 million resulting in a favorable adjustment of $8 million that                is                classified as part of special items in the Company’s *Condensed                Statements of Consolidated Operations                (Unaudited).* |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Claims      Resolution Process.***
*** ***

----

*Significant Matters Remaining to be      Resolved in Chapter 11 Cases,*

*Condensed Statements of Consolidated Financial Position (Unaudited)*

|                                                                                               |   | Three                months       |   |   | Nine                months |   |   |
|----------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|--------|----------------------------|--------|--------|
|                                                                                               |   | Ended                             |   |   | Ended                      |   |   |
| (in                millions)                                                                       |   | September                30, 2007 |   |   |
| Balance                at beginning of period                                                      |   | $                                 | 213    |   |                       | $      | 325    |   |   |
| Payments                                                                                           |   |                              | -      |   |                       |   | (76    | ) |   |
| Accruals                reclassified                                                               |   |                              | (31    | )      |                       |   | (31    | ) | (a) |
| Adjustments                impacting income:                                                       |   |                              |   |   |                       |   |   |   |   |
|    Accrual                adjustments classified as special revenue credits         |   |                              | (45    | )      |                       |   | (45    | ) | (b) |
|    Other                changes in contingent liabilities classified as revenues    |   |                              | (26    | )      |                       |   | (26    | ) | (c) |
|    Accrual                adjustments classified as special expense credits         |   |                              | (8     | )      |                       |   | (30    | ) | (d) |
|    Accrual                adjustments classified as other operating expense credits |   |                              | 2      |   |                       |   | (12    | ) | (e) |
|       Total                adjustments impacting income              |   |                              | (77    | )      |                       |   | (113   | ) |   |
| Balance                at September 30, 2007                                                       |   | $                                 | 105    |   |                       | $      | 105    |   |   |
|                                                                                               |   |                              |   |   |                       |   |   |   |   |
| Total                credit to operating income during period from above items                     |   | $                                 | (77    | )      |                       | $      | (113   | ) |   |
| Additional                special operating expense credit                                         |   |                              | (14    | )      |                       |   | (14    | ) | (f) |
| Total                operating income benefit                                                      |   | $                                 | (91    | )      |                       | $      | (127   | ) |   |

|   | (a) | This                amount relates to accruals that are still recognized in the Company’s                *Condensed Statements of Consolidated Financial Position                (Unaudited)*; however, these accruals are now deemed to be no longer                directly related to bankruptcy proceedings; therefore, the accruals                are no                longer classified as part of bankruptcy administrative and priority                claims. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | In                the third quarter of 2007, the Company recorded a change in estimate                for                certain liabilities relating to bankruptcy administrative claims.                This                adjustment resulted directly from the progression of the Company’s ongoing                efforts to resolve certain bankruptcy pre-confirmation contingencies;                therefore, it was classified as a special operating revenue                credit of $45 million that relates to both Mainline passenger revenues                ($37 million) and United Express revenues ($8                million). |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | The                Company separately recorded a $26 million benefit from a change in                estimate to certain other contingent liabilities based largely on                changes                in underlying facts and circumstances occurring during the third                quarter.                This benefit was recorded as a credit to mainline passenger revenues                of                $22 million, and to regional affiliate revenues of $4                million. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Amount                relates to special operating expense credits of $8 million and $30                million                in the three and nine months ended September 30, 2007, respectively,                relating to ongoing litigation for San Francisco and Los Angeles                facility                lease secured interests as discussed above. A benefit of $30 million                was                recorded in the three and eight month periods ended September 30,                2006, as                a result of changes in estimate regarding these litigation                matters. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (e) | This                amount relates to accrual adjustments impacting various operating                expense                line items that the Company recorded due to a change in estimate                for                certain liabilities relating to bankruptcy administrative claims.                These                adjustments resulted directly from the progression of the Company’s                ongoing efforts to resolve certain bankruptcy pre-confirmation                contingencies. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | This                amount relates to an accrual adjustment that the Company recorded                due to a                change in estimate for certain liabilities relating to bankruptcy                administrative claims. This adjustment, which was recorded as a credit                to                other operating expense, resulted directly from the progression of                the                Company’s ongoing efforts to resolve certain bankruptcy pre-confirmation                contingencies. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Reorganization      items, net.***
*** ***

|                                                       |   | **Predecessor** |   |   |       |
|------------------------------------------------------------|--------|-----------------|--------|--------|------------|
| **(In millions)**                                     |   | **UAL**         |   |   | **United** |   |   |   |
| Discharge                of claims and liabilities         |   | $               | 24,628 |   |       | $ | 24,389 |   | (a) |   |
| Revaluation                of frequent flyer obligations   |   |            | (2,399 | )      |       |   | (2,399 | ) | (b) |   |
| Revaluation                of other assets and liabilities |   |            | 2,106  |   |       |   | 2,111 |   | (c) |   |
| Employee-related                charges                    |   |            | (898   | )      |       |   | (898 | ) | (d) |   |
| Contract                rejection charges                  |   |            | (429   | )      |       |   | (421 | ) | (e) |   |
| Professional                fees                           |   |            | (47    | )      |       |   | (47 | ) |   |   |   |
| Pension-related                charges                     |   |            | (14    | )      |       |   | (14 | ) |   |   |   |
| Other                                                      |   |            | (13    | )      |       |   | (12 | ) |   |   |   |
|                                                       |   | $               | 22,934 |   |       | $ | 22,709 |   |   |   |   |

|   | (a) | The                discharge of claims and liabilities primarily relates to those unsecured                claims arising during the bankruptcy process, such as those arising                from                the termination and settlement of United’s U.S. defined benefit pension                plans and other employee claims; aircraft-related claims, such as                those                arising as a result of aircraft rejections; other unsecured claims                due to                the rejection or modification of executory contracts, unexpired leases                and                regional carrier contracts; and claims associated with certain municipal                bond obligations based upon their rejection, settlement or the estimated                impact of the outcome of pending litigation. In accordance with the                Plan                of Reorganization, UAL and United discharged certain obligations                to                unsecured creditors in exchange for the distribution of 115 million                shares of new UAL common stock and the issuance of certain other                UAL                securities. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | United                revalued its Mileage Plus frequent flyer obligations at fair value                as a                result of fresh-start reporting, which resulted in a $2.4 billion                non-cash reorganization charge. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | In                accordance with fresh-start reporting, UAL and United recorded their                assets at estimated fair value and liabilities at estimated fair                value or                the present value of amounts to be paid. This resulted in a non-cash                reorganization gain of $2.1 billion, primarily as a result of newly                recognized intangible assets, offset partly by reductions in the                fair                value of tangible property and                equipment. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  (d) | In                January 2006, UAL and United recorded the value of the deemed claim                that the salaried and management group received upon confirmation                of the                Plan of Reorganization. The deemed claim was based upon the cost                savings                provided by this employee group during the bankruptcy                process. |
|--|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Contract                rejection charges are non-cash costs that include estimated claim                values                resulting from the Company’s rejection or negotiated modification of                certain contractual obligations such as executory contracts, unexpired                leases and regional carrier                contracts. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**(3)      New Accounting Pronouncements**

*Accounting      for Uncertainty in Income Taxes—an interpretation of FASB Statement      No. 109*

----

*Fair Value Measurements *

*The Fair Value Option for Financial Assets and Financial      Liabilities Including an amendment of FASB Statement No. 115*

**(4)      Common Stockholders’ Equity (UAL Only)**

|   |                                                               |   | **Nine                Months**             |        |
|--------|--------------------------------------------------------------------|--------|--------------------------------------------|-------------|
|   |                                                               |   | **Ended**                                  |        |
|   | **UAL**                                                            |   | **September                30, 2007** |        |
|   | UAL                common stock outstanding at beginning of period |   |                                       | 112,280,629 |   |
|   | Issuance                of UAL common stock to creditors           |   |                                       | 3,091,812   |   |
|   | Issuance                of UAL common stock to employees           |   |                                       | 989,033     |   |
|   | Forfeiture                of non-vested UAL restricted stock       |   |                                       | (67,226     | ) |
|   | Treasury                shares acquired                            |   |                                       | (258,926    | ) |
|   | UAL                common stock outstanding at end of period       |   |                                       | 116,035,322 |   |
|   |                                                               |   |                                       |        |   |
|   | Treasury                shares at beginning of period              |   |                                       | 136,777     |   |
|   | Shares                acquired for treasury                        |   |                                       | 258,926     |   |
|   | Treasury                shares at end of period                    |   |                                       | 395,703     |   |

**(5)      Per Share Amounts (UAL Only)**

*Earnings per Share”*

----

|                                                                                                         |   |                                            |   |   |                                                         |   |
|--------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|--------|--------|--------------------------------------------------------------|--------|
|                                                                                                         |   | Successor                                       |   |   | Predecessor                                                  |   |
|   (In                millions)                                                                     |   | Three                Months Ended September 30, |   |   | Nine                Months EndedSeptember                30, |   |   | Period                from February 1 to September                30, |   |   | One                MonthEnded January                31, |   |
|                                                                                                         |   | 2007                                            |   |   | 2006                                                         |   |   | 2007 |   |   | 2006 |   |   | 2006 |   |
| **Basic                earnings per share:**                                                                 |   |                                            |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |
|   Net                income                                                                        |   | $                                               | 334    |   |                                                         | $      | 190 |   |   | $ | 456 |   |   | $ | 86 |   |   | $ | 22,851 |   |
|   Preferred                stock dividend requirements                                             |   |                                            | (3     | )      |                                                         |   | (3 | ) |   |   | (8 | ) |   |   | (7 | ) |   |   | (1 | ) |
|   Earnings                available to common stockholders                                         |   | $                                               | 331    |   |                                                         | $      | 187 |   |   | $ | 448 |   |   | $ | 79 |   |   | $ | 22,850 |   |
|                                                                                                         |   |                                            |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Basic                weighted average shares outstanding                                         |   |                                            | 117.5  |   |                                                         |   | 115.6 |   |   |   | 117.3 |   |   |   | 115.3 |   |   |   | 116.2 |   |
|                                                                                                         |   |                                            |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Earnings                per share, basic                                                         |   | $                                               | 2.82   |   |                                                         | $      | 1.62 |   |   | $ | 3.82 |   |   | $ | 0.69 |   |   | $ | 196.61 |   |
|                                                                                                         |   |                                            |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Diluted                earnings per share:**                                                               |   |                                            |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Earnings                available to common stockholders                                         |   | $                                               | 331    |   |                                                         | $      | 187 |   |   | $ | 448 |   |   | $ | 79 |   |   | $ | 22,850 |   |
|   Effect                of 2% preferred securities                                                 |   |                                            | 3      |   |                                                         |   | 3 |   |   |   | 8 |   |   |   | 7 |   |   |   | - |   |
|   Effect                of 4.5% senior limited-subordination convertible                notes |   |                                            | 5      |   |                                                         |   | 5 |   |   |   | 15 |   |   |   | - |   |   |   | - |   |
|   Effect                of 5% convertible notes                                                    |   |                                            | 2      |   |                                                         |   | 1 |   |   |   | 4 |   |   |   | - |   |   |   | - |   |
|   Earnings                available to common stockholders                                         |   |                                            |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      including                the effect of dilutive securities                     |   | $                                               | 341    |   |                                                         | $      | 196 |   |   | $ | 475 |   |   | $ | 86 |   |   | $ | 22,850 |   |
|                                                                                                         |   |                                            |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Basic                weighted average shares outstanding                                         |   |                                            | 117.5  |   |                                                         |   | 115.6 |   |   |   | 117.3 |   |   |   | 115.3 |   |   |   | 116.2 |   |
|   Effect                of non-vested stock options                                                |   |                                            | 0.4    |   |                                                         |   | - |   |   |   | 0.1 |   |   |   | - |   |   |   | - |   |
|   Effect                of non-vested restricted shares                                            |   |                                            | 1.2    |   |                                                         |   | 0.7 |   |   |   | 1.1 |   |   |   | 0.5 |   |   |   | - |   |
|   Effect                of 2% preferred securities                                                 |   |                                            | 11.0   |   |                                                         |   | 10.8 |   |   |   | 11.0 |   |   |   | 10.8 |   |   |   | - |   |
|   Effect                of 4.5% senior limited-subordination convertible                notes |   |                                            | 20.8   |   |                                                         |   | 20.8 |   |   |   | 20.8 |   |   |   | - |   |   |   | - |   |
|   Effect                of 5% convertible notes                                                    |   |                                            | 3.2    |   |                                                         |   | 3.2 |   |   |   | 3.2 |   |   |   | - |   |   |   | - |   |
|   Diluted                weighted average shares outstanding                                       |   |                                            | 154.1  |   |                                                         |   | 151.1 |   |   |   | 153.5 |   |   |   | 126.6 |   |   |   | 116.2 |   |
|                                                                                                         |   |                                            |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Earnings                per share, diluted                                                       |   | $                                               | 2.21   |   |                                                         | $      | 1.30 |   |   | $ | 3.10 |   |   | $ | 0.68 |   |   | $ | 196.61 |   |
|                                                                                                         |   |                                            |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| *Potentially                dilutive shares excluded from diluted per share                amounts:*         |   |                                            |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock                options                                                                                 |   |                                            | 3.9    |   |                                                         |   | 5.3 |   |   |   | 4.2 |   |   |   | 5.3 |   |   |   | 9.0 |   |
| Restricted                shares                                                                             |   |                                            | 0.8    |   |                                                         |   | 2.0 |   |   |   | 0.9 |   |   |   | 2.2 |   |   |   | - |   |
| 4.5%                senior limited-subordination convertible notes                                           |   |                                            | -      |   |                                                         |   | - |   |   |   | - |   |   |   | 20.9 |   |   |   | - |   |
| 5%                convertible notes                                                                          |   |                                            | -      |   |                                                         |   | - |   |   |   | - |   |   |   | 3.2 |   |   |   | - |   |
|                                                                                                         |   |                                            | 4.7    |   |                                                         |   | 7.3 |   |   |   | 5.1 |   |   |   | 31.6 |   |   |   | 9.0 |   |

**(6)      Share-Based Compensation Plans**

***Predecessor***

***Successor***

----

|                                              |   | **Options** |      |
|---------------------------------------------------|--------|-------------|-----------|
| Outstanding                at beginning of period |   |        | 5,064,672 |   |
| Granted                                           |   |        | 199,366   |   |
| Exercised                                         |   |        | (857,799  | ) |
| Canceled                                          |   |        | (124,574  | ) |
| Outstanding                at end of period       |   |        | 4,281,665 |   |
|                                              |   |        |      |   |
| Exercisable                at end of period       |   |        | 1,077,377 |   |

|                                            |   | **Restricted Stock** |      |
|-------------------------------------------------|--------|---------------------------|-----------|
| Nonvested                at beginning of period |   |                      | 2,712,787 |   |
| Granted                                         |   |                      | 131,234   |   |
| Vested                                          |   |                      | (753,167  | ) |
| Terminated                                      |   |                      | (67,226   | ) |
| Nonvested                at end of period       |   |                      | 2,023,628 |   |

**(7)      Income Taxes**

*Accounting for Contingencies *

*Condensed Statements of      Consolidated Operations (Unaudited). *

----

*Share-Based Payment*

** (8)      Retirement and Postretirement Plans**

|                                             |   | **Pension Benefits**                                      |     |   | **Other Benefits**                                        |     |
|--------------------------------------------------|--------|----------------------------------------------------------------|----------|--------|----------------------------------------------------------------|----------|
|                                             |   |                                                           |     |   |                                                           |     |
|                                             |   | **Three Months****Ended****September                30,** |     |   | **Three Months****Ended****September                30,** |     |   | **Three Months****Ended****September                30,** |   |   | **Three Months****Ended****September                30,** |   |
| **(In millions)**                           |   |                                                           | **2007** |   |                                                           | **2006** |   |   | **2007** |   |   | **2006** |   |
| Service                cost                      |   | $                                                              | 2        |   |                                                           | $        | 3 |   |   | $ | 11 |   |   | $ | 9 |   |
| Interest                cost                     |   |                                                           | 2        |   |                                                           |     | 2 |   |   |   | 29 |   |   |   | 31 |   |
| Expected                return on plan assets    |   |                                                           | (2       | )      |                                                           |     | (2 | ) |   |   | (1 | ) |   |   | (1 | ) |
| Amortization                of unrecognized gain |   |                                                           | 1        |   |                                                           |     | — |   |   |   | (4 | ) |   |   | — |   |
| Net                periodic benefit costs        |   | $                                                              | 3        |   |                                                           | $        | 3 |   |   | $ | 35 |   |   | $ | 39 |   |

|                                                                                |   | **Pension Benefits**                                               |    | **Other Benefits**                                                       |
|-------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------|---------|-------------------------------------------------------------------------------|
|                                                                                |   | **Successor**                                                           |    | **Predecessor**                                                               |   | **Successor** |   | **Predecessor** |
|                                                                                |   | **Nine                Months****Ended****September                30,** |    | **Period from****February 1****to****September                30,** |   | **Period from****January 1 to**** January 31,** |   | **Nine                Months****Ended****September                30,** |   | **Period from****February 1****to****September                30,** |   | **Period from****January 1 to**** January 31,** |
| **(In millions)**                                                              |   |                                                                    |    | **2007**                                                                      |   | **2006** |   | **2006** |   | **2007** |   | **2006** |   | **2006** |
| Service                cost                                                         |   | $                                                                       | 7       |                                                                          |   | $ | 7 |   |   | $ | 1 |   |   | $ | 29 |   |   | $ | 24 |   |   | $ | 3 |   |
| Interest                cost                                                        |   |                                                                    | 7       |                                                                          |   |   | 6 |   |   |   | 1 |   |   |   | 91 |   |   |   | 84 |   |   |   | 11 |   |
| Expected                return on plan assets                                       |   |                                                                    | (7      | )                                                                             |   |   | (6 | ) |   |   | (1 | ) |   |   | (3 | ) |   |   | (4 | ) |   |   | (1 | ) |
| Amortization                of prior service credit including transition obligation |   |                                                                    | — |                                                                          |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (13 | ) |
| Amortization                of unrecognized (gain) loss                             |   |                                                                    | — |                                                                          |   |   | — |   |   |   | — |   |   |   | (8 | ) |   |   | — |   |   |   | 8 |   |
| Net                periodic benefit costs                                           |   | $                                                                       | 7       |                                                                          |   | $ | 7 |   |   | $ | 1 |   |   | $ | 109 |   |   | $ | 104 |   |   | $ | 8 |   |

**(9)      Segment Information**

*Disclosures about Segments of an Enterprise and Related      Information.”*

----

|                                                                             |   | **Successor**                         |   |   | **Predecessor**                         |   |
|----------------------------------------------------------------------------------|--------|---------------------------------------|--------|--------|-----------------------------------------|--------|
|  (In                millions)                                               |   | **Three                Months Ended** |   |   | **Nine                Months****Ended** |   |   | **Period                from****February                1 to** |   |   | **Period                from****January                1 to** |   |
|                                                                             |   | **September                30,**      |   |   | **September                30,**        |   |   | **September                30,** |   |   | **January                31,** |   |
| **UAL                segment information:**                                      |   | **2007**                              |   |   | **2006**                                |   |   | **2007** |   |   | **2006** |   |   | **2006** |   |
| Revenue:                                                                         |   |                                  |   |   |                                    |   |   |   |   |   |   |   |   |   |   |
|   Mainline                                                             |   | $                                     | 4,663  |   |                                    | $      | 4,403 |   |   | $ | 12,770 |   |   | $ | 11,297 |   |   | $ | 1,254 |   |
|   United                Express                                        |   |                                  | 819    |   |                                    |   | 773 |   |   |   | 2,298 |   |   |   | 1,999 |   |   |   | 204 |   |
|   Special                revenue items                                 |   |                                  | 45     |   |                                    |   | - |   |   |   | 45 |   |   |   | - |   |   |   | - |   |
|     Total                                                    |   | $                                     | 5,527  |   |                                    | $      | 5,176 |   |   | $ | 15,113 |   |   | $ | 13,296 |   |   | $ | 1,458 |   |
|                                                                             |   |                                  |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment                earnings (loss):                                          |   |                                  |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Mainline                                                             |   | $                                     | 431    |   |                                    | $      | 160 |   |   | $ | 585 |   |   | $ | 13 |   |   | $ | (59 | ) |
|   United                Express                                        |   |                                  | 68     |   |                                    |   | 60 |   |   |   | 122 |   |   |   | 103 |   |   |   | (24 | ) |
|   Reorganization                items, net                             |   |                                  | -      |   |                                    |   | - |   |   |   | - |   |   |   | - |   |   |   | 22,934 |   |
|   Special                revenue items                                 |   |                                  | 45     |   |                                    |   | - |   |   |   | 45 |   |   |   | - |   |   |   | - |   |
|   Special                expense items                                 |   |                                  | 22     |   |                                    |   | 30 |   |   |   | 44 |   |   |   | 30 |   |   |   | - |   |
|   Less:                equity earnings (a)                             |   |                                  | (1     | )      |                                    |   | (1 | ) |   |   | (3 | ) |   |   | (4 | ) |   |   | (5 | ) |
|      Consolidated                earnings before        |   |                                  |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      income                taxes and equity in earnings |   |                                  |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      of                affiliates                       |   | $                                     | 565    |   |                                    | $      | 249 |   |   | $ | 793 |   |   | $ | 142 |   |   | $ | 22,846 |   |
|                                                                             |   |                                  |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                             |   |                                  |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **United                segment information:**                                   |   |                                  |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue:                                                                         |   |                                  |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Mainline                                                             |   | $                                     | 4,666  |   |                                    | $      | 4,403 |   |   | $ | 12,780 |   |   | $ | 11,294 |   |   | $ | 1,250 |   |
|   United                Express                                        |   |                                  | 819    |   |                                    |   | 773 |   |   |   | 2,298 |   |   |   | 1,999 |   |   |   | 204 |   |
|   Special                revenue items                                 |   |                                  | 45     |   |                                    |   | - |   |   |   | 45 |   |   |   | - |   |   |   | - |   |
|     Total                                                    |   | $                                     | 5,530  |   |                                    | $      | 5,176 |   |   | $ | 15,123 |   |   | $ | 13,293 |   |   | $ | 1,454 |   |
|                                                                             |   |                                  |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment                earnings (loss):                                          |   |                                  |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Mainline                                                             |   | $                                     | 436    |   |                                    | $      | 170 |   |   | $ | 604 |   |   | $ | 23 |   |   | $ | (59 | ) |
|   United                Express                                        |   |                                  | 68     |   |                                    |   | 60 |   |   |   | 122 |   |   |   | 103 |   |   |   | (24 | ) |
|   Reorganization                items, net                             |   |                                  | -      |   |                                    |   | - |   |   |   | - |   |   |   | - |   |   |   | 22,709 |   |
|   Special                revenue items                                 |   |                                  | 45     |   |                                    |   | - |   |   |   | 45 |   |   |   | - |   |   |   | - |   |
|   Special                expense items                                 |   |                                  | 22     |   |                                    |   | 30 |   |   |   | 44 |   |   |   | 30 |   |   |   | - |   |
|   Less:  equity                earnings (a)                  |   |                                  | (1     | )      |                                    |   | (1 | ) |   |   | (3 | ) |   |   | (4 | ) |   |   | (5 | ) |
|      Consolidated                earnings before        |   |                                  |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      income                taxes and equity in earnings |   |                                  |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      of                affiliates                       |   | $                                     | 570    |   |                                    | $      | 259 |   |   | $ | 812 |   |   | $ | 152 |   |   | $ | 22,621 |   |

| ____________________ |  |
|----------------------|--|

|   | (a) | Equity                earnings are part of the Mainline                segment. |
|--------|-----|---------------------------------------------------------------------------------|

**(10)      Comprehensive Income (Loss)**

----

*Employers’ Accounting for      Pensions and Other Postretirement Plans*
*an amendment of FASB      Statements No. 87, 88, 106 and 132R, *

**(11)      Debt Obligations**

*Amended      Credit Facility*

*Statements of      Consolidated Financial Position. *
*Condensed Statements of Consolidated Operations      (Unaudited).*

----

*EETC      Pass Through Certificates, Series 2007-1*

----

*Denver Special Facilities Airport Revenue Refunding      Bonds, Series 2007A*

*Condensed Statements of Consolidated Financial Position*

*Purchases      of EETC Securities*

**(12)      Financial Instruments and Risk Management**

*Accounting for      Derivative Instruments and Hedging Activities*

***Aircraft      Fuel Hedges***

*Condensed      Statements of Consolidated Operations (Unaudited).*

***Foreign      Exchange.***

----

**(13)      **
**Commitments,      Contingent Liabilities and Uncertainties**

***General      Guarantees and Indemnifications***
*** ***

***Bankruptcy      Matters***
*** ***

***Legal      and Environmental Contingencies***
*** ***

***Commitments***
*** ***

***Municipal      Bond Guarantees***
**.**
** **

***Tax      Contingencies.***
*** ***
*. *

----

**(14)      **
**Lease      Obligations**

**(15)      Open Skies Agreement**

*Goodwill and Other Intangible Assets,”*

**(16)      Statement of Consolidated Cash Flows—Supplemental      Disclosures**

|                                                                 |   | **Successor**                                                           |    | **Predecessor**                                                                           |   |
|----------------------------------------------------------------------|--------|-------------------------------------------------------------------------|---------|-------------------------------------------------------------------------------------------|--------|
|                                                                 |   | **Nine                Months****Ended****September                30,** |    | **Period from****February 1                to****September                30,** |   | **Period from****January 1 to 31,** |   |
| **(In millions)**                                               |   | **2007**                                                                |    | **2006**                                                                                  |   | **2006** |   |
| Cash                paid during the period for:                      |   |                                                                    |    |                                                                                      |   |   |   |   |   |   |   |   |   |
| Interest                (net of amounts capitalized)                 |   | $                                                                       | 487     |                                                                                      |   | $ | 496 |   |   | $ | 35 |   |   |
| Income                taxes                                          |   |                                                                    | — |                                                                                      |   |   | — |   |   |   | — |   |   |
|                                                                 |   |                                                                    |    |                                                                                      |   |   |   |   |   |   |   |   |   |
| Non-cash                investing and financing activities:          |   |                                                                    |    |                                                                                      |   |   |   |   |   |   |   |   |   |
| Long-term                debt incurred for additions to other assets |   | $                                                                       | — |                                                                                      |   | $ | 242 |   |   | $ | — |   |   |
| Capital                lease obligations incurred to acquire assets  |   |                                                                    | — |                                                                                      |   |   | 155 |   |   |   | — |   |   |

**(17)      Related Party Transactions**

**(18)      Subsequent Event**

----

**ITEM      2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS**

**Overview**

***Bankruptcy      Matters.***
*** ***
*Combined Notes to Condensed Consolidated Financial      Statements (Unaudited)*

***Recent      Developments.***
*** ***

|   | · | In                September 2007, UAL’s management and its Board of Directors completed a                strategic planning session to discuss the future of United. The Company                has developed a five-year plan, the ambition of which is to position                United as the global airline of choice for premium customers, employees                and investors, while maintaining our fundamental commitment to safety                and                balancing the needs of all of our stakeholders. The Company’s main focus                continues to be strengthening our core business, including a detailed                roadmap of more than 250 initiatives and significant capital investment                over the next five years. These investments will be targeted to                support improvements for customers and employees, and drive revenue                and                efficiency improvements. In addition to strengthening the performance                of                the airline, our plan also includes unlocking the value of business                units                such as United Services and Mileage Plus. Our goal is to generate                returns                to shareholders and stakeholders that are competitive with American                industry in general.   |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In                2006, United announced a program to reduce projected 2007 expenses                by $400                million. We are on track to achieve these savings in                2007. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In                July 2007, United entered into an agreement to sell its interest                in                Aeronautical Radio, Inc. (“ARINC”), to Radio Acquisition Corp., an                affiliate of The Carlyle Group. ARINC is a provider of transportation                communications and systems engineering. The transaction closed on                October                25, 2007 and generated proceeds of $128 million and a pre-tax net                gain of                $41 million. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In                July 2007, in order to refinance certain aircraft at a lower cost                United                purchased three 747-400 aircraft that had previously been financed                by                United through operating leases. The lease agreements were simultaneously                terminated upon the closing of the acquisition.  The Company                purchased these aircraft at a total price in excess of $150 million,                largely with the proceeds of the EETC transaction executed by the                Company                in the second quarter of 2007. These two transactions combined did                not                change the total number of encumbered                aircraft. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | In                2007, UAL’s operating cash flow improved by 58% as compared to the prior                periods, increasing to $2.0 billion for the nine months ended September                30, 2007. The improvement in cash flows was primarily due to improved                results of operations and certain working capital changes, as discussed                below. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | United                will strengthen its passenger and cargo service to the Middle East,                one of                the world’s most rapidly growing business regions, by adding more flights                between Washington, D.C. and Kuwait City and by signing a code sharing                agreement with Qatar Airways. Customer response to United’s thrice-weekly                Kuwait service has been strong, and the Company recently announced                an                increase of this service to daily frequency, effective December 16,                2007. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | United                also recently announced that it was further strengthening its                international network by launching two new non-stop flights from                the U.S.                to Asia and South America. Daily, non-stop passenger and cargo service                between Los Angeles and Hong Kong and between Washington, D.C. and                Rio de                Janeiro began on October 28, 2007. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The                Company will soon showcase the first of 97 international aircraft                to be                refitted with new premium seats, entertainment systems and other                product                enhancements with an inaugural flight from Washington Dulles to Frankfurt.                With this flight, United earns the distinction of becoming the first                U.S.                carrier to offer 180-degree, lie-flat beds in business class on overseas                flights. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | United                and Aloha Airlines (“Aloha”) expanded their existing cooperation agreement                and strengthened their partnership in the Hawaii and Transpacific                markets,                effective July 3, 2007. This agreement capitalizes on both Aloha’s and                United’s 60 years of experience in serving Hawaii and expands marketing,                operational and financial opportunities for both carriers. Under                the                agreement, United received a minority equity stake in Aloha that could                expand over time and a seat on Aloha’s board of                directors. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In                September 2007, the Company announced it received U.S. Department                of                Transportation (“DOT”) approval to become the first U.S. carrier to begin                daily nonstop service to Guangzhou, China. The service from San Francisco                will commence in June 2008. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In                September 2007, United announced that new daily passenger and cargo                service between Los Angeles and Frankfurt, Germany will commence                on                December 15, 2007. In response to increased customer demand for more                frequent flights to Europe this addition represents United’s eighth daily                flight to Frankfurt and with the new service from Los Angeles, United                now                serves Frankfurt from all four of its international                gateways. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The                U.S. government and the European Union (“EU”) recently signed a                transatlantic aviation agreement to replace the existing bilateral                arrangements between the U.S. Government and the 27 EU member states.                The                agreement will become effective at the end of March 2008. The future                benefits of this agreement cannot be predicted due to potential increased                competition; however, we have already taken actions to capitalize                on                opportunities under the new agreement, including United’s recent                application to complete its antitrust immunity with bmi that would                allow                the two airlines to integrate their operations at London’s Heathrow                airport. In September 2007, the DOT granted authority to effectuate                antitrust immunity between United and bmi, and to include bmi in                the                multilateral group of Star Alliance carriers that had already been                granted                antitrust immunity by the DOT. The immunity goes into effect at the                same                time as the Open Skies treaty between the U.S. and the EU in March                2008. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Financial      Results.***

*** ***

*Financial Reporting by Entities in Reorganization under the Bankruptcy      Code*

*Condensed Statements of Consolidated Operations (Unaudited)*

----

|                                                                    |   | Successor                         |   |   | Combined                     |   |   | Successor                    |   |   | Predecessor                   |   |
|-------------------------------------------------------------------------|--------|-----------------------------------|--------|--------|------------------------------|--------|--------|------------------------------|--------|--------|-------------------------------|--------|
|                                                                    |   |                              |   |   | Nine                Months   |   |   | Nine                Months   |   |   | Period                from    |   |   | Period                from |   |
|                                                                         |   | Three                Months Ended |   |   | Ended                        |   |   | Ended                        |   |   | February                1 to  |   |   | January                1 to |   |
|  (In                  millions)                                    |   | September                30,      |   |   | September                30, |   |   | September                30, |   |   | September                30,  |   |   | January                31, |   |
| **UAL**                                                            |   | 2007                              |   |   |  2006                   |   |   |  2007                   |   |   |  2006                (a) |   |   |  2006 |   |   |  2006 |   |
| Earnings                (loss) before reorganization                    |   |                              |   |   |                         |   |   |                         |   |   |                          |   |   |   |   |   |   |   |
| items,                income taxes and equity in earnings of affiliates |   | $                                 | 565    |   |                         | $      | 249    |                         |   | $      | 793                           |   |   | $ | 54 |   |   | $ | 142 |   |   | $ | (88 | ) |
| Reorganization                income                                    |   |                              | -      |   |                         |   | -      |                         |   |   | -                             |   |   |   | 22,934 |   |   |   | - |   |   |   | 22,934 |   |
| Income                tax expense                                       |   |                              | (232   | )      |                         |   | (60    | )                            |   |   | (340                          | )      |   |   | (60 | ) |   |   | (60 | ) |   |   | - |   |
| Equity                in earnings of affiliates                         |   |                              | 1      |   |                         |   | 1      |                         |   |   | 3                             |   |   |   | 9 |   |   |   | 4 |   |   |   | 5 |   |
| UAL                net income                                           |   | $                                 | 334    |   |                         | $      | 190    |                         |   | $      | 456                           |   |   | $ | 22,937 |   |   | $ | 86 |   |   | $ | 22,851 |   |
| United                net income                                        |   | $                                 | 337    |   |                         | $      | 195    |                         |   | $      | 467                           |   |   | $ | 22,717 |   |   | $ | 91 |   |   | $ | 22,626 |   |

| (a) | The                combined period includes the results for the one month period ended                January 31, 2006 (Predecessor) and the eight month period ended                September 30, 2006 (Successor). |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*UAL*

*Results of Operations*

|   | · | Including                special items, passenger revenues increased by $400 million and $619                million in the three and nine month periods ended September 30, 2007,                respectively, as compared to the prior periods due to increases,                in yield                for the third quarter and in both traffic and yield for the nine                months                ended September 30, 2007. The special revenue items of $45 million                were recognized in the three and nine month periods of 2007 due to                an                accounting accrual adjustment made as a result of ongoing resolution                of                certain bankruptcy pre-confirmation contingencies. Additional accrual                adjustments of $26 million were recorded as a credit to Mainline                and                United Express passenger revenues in the third quarter of 2007 due                to a                change in estimate to certain other contingent liabilities. See Note                2,                “Voluntary Reorganization Under Chapter 11” in *Combined Notes to                Condensed Consolidated Financial Statements (Unaudited)* for a further                discussion of these adjustments. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | During                the nine months ended September 30, 2007, the Company reduced its                accrual                for bankruptcy litigation associated with potential security interests                in                its San Francisco International Airport (“SFO”) and Los Angeles                International Airport (“LAX”) facility leases by a total of                $30 million based on an updated analysis of its potential                obligations. A $22 million benefit was recorded in the first quarter                of                2007 with an additional benefit of $8 million in the third quarter                of                2007. Both items are classified as special items in the *Condensed                Statements of Consolidated Operations (Unaudited)*. The Company also                recorded an additional special credit to expense of $14 million in                the                third quarter of 2007 due to accrual adjustments related to ongoing                resolution of certain bankruptcy pre-confirmation                contingencies. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In                the three and nine month periods ended September 30, 2007, UAL recognized                income tax expense of $232 million and $340 million, respectively.                Income tax expense of $60 million was recorded in both of the prior                year                periods. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | UAL                interest expense, net of interest income, decreased by $2 million                and $70                million in the three and nine months ended September 30, 2007 as                compared                to the year-ago periods primarily due to the prepayment and amendment                of                the                Credit Facility in February 2007 as discussed below. The 2006 quarterly                net interest included a $30 million benefit due to the Company’s                discontinuance of the accrual of imputed interest expense associated                with                its advanced purchase of miles.  |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*United*

***Liquidity.***
*** ***
*Liquidity and Capital Resources*

***Capital      Commitments.***
*** ***
*Combined Notes to      Condensed Consolidated Financial Statements (Unaudited).*

***Contingencies.***
*** ***
*Combined Notes to Condensed      Consolidated Financial Statements (Unaudited).*

*Municipal      Bond Obligations & Off-Balance Sheet Financing.*

*Condensed Statements of      Consolidated Financial Position (Unaudited)*

*Legal      and Environmental.*
* *

----

***Third      Quarter 2007 Compared to Third Quarter 2006***

*Operating      Revenues.*
* *

|                                                          |   | Three                Months Ended |   |   |       |   |   |         |   |
|---------------------------------------------------------------|--------|-----------------------------------|--------|--------|------------|--------|--------|--------------|--------|
|  (In                millions)                            |   | September                30,      |   |   | $     |   |   |         | %      |   |
|  **UAL**                                            |   | 2007                              |   |   |  2006 |   |   |  Change |   |   |  Change |   |
| Passenger                - United Airlines                    |   | $                                 | 4,225  |   |       | $      | 3,916  |         |   | $ | 309 |   |   |   | 7.9 |   |
| Passenger                - Regional Affiliates                |   |                              | 819    |   |       |   | 773    |         |   |   | 46 |   |   |   | 6.0 |   |
| Cargo                                                         |   |                              | 198    |   |       |   | 183    |         |   |   | 15 |   |   |   | 8.2 |   |
| Special                operating items                        |   |                              | 45     |   |       |   | -      |         |   |   | 45 |   |   |   | - |   |
|     Other              operating revenues |   |                              | 240    |   |       |   | 304    |         |   |   | (64 | )  |   |   | (21.1 | )  |
|                                                          |   | $                                 | 5,527  |   |       | $      | 5,176  |         |   | $ | 351 |   |   |   | 6.8 |   |
|                                                          |   |                              |   |   |       |   |   |         |   |   |   |   |   |   |   |   |
| **United**                                                    |   |                              |   |   |       |   |   |         |   |   |   |   |   |   |   |   |
| Passenger                - United Airlines                    |   | $                                 | 4,225  |   |       | $      | 3,916  |         |   | $ | 309 |   |   |   | 7.9 |   |
| Passenger                - Regional Affiliates                |   |                              | 819    |   |       |   | 773    |         |   |   | 46 |   |   |   | 6.0 |   |
| Cargo                                                         |   |                              | 198    |   |       |   | 183    |         |   |   | 15 |   |   |   | 8.2 |   |
| Special                operating items                        |   |                              | 45     |   |       |   | -      |         |   |   | 45 |   |   |   | - |   |
|     Other              operating revenues |   |                              | 243    |   |       |   | 304    |         |   |   | (61 | )  |   |   | (20.1 | )  |
|                                                          |   | $                                 | 5,530  |   |       | $      | 5,176  |         |   | $ | 354 |   |   |   | 6.8 |   |

|  **2007**                                    |   | **North                  America** |       |   | **Pacific** |        |   | **Atlantic** |   |        | **Latin** |       |   | **Mainline** |        |   | **United                  Express** |   |   | **Consolidated** |   |
|---------------------------------------------------|--------|------------------------------------|------------|--------|-------------|-------------|--------|--------------|--------|-------------|-----------|------------|--------|--------------|-------------|--------|-------------------------------------|--------|--------|------------------|--------|
| Increase                  (decrease) from 2006:   |   |                               |       |   |        |        |   |         |   |        |      |       |   |         |        |   |                                |   |   |             |   |
| Passenger                  revenues (in millions) |   | $                                  | 119        |   |        | $           | 125    |         |   | $           | 104       |       |   | $            | (2          | )      |                                | $      | 346    |             |   | $ | 54 |   |   | $ | 400 |   |
| Passenger                  revenues               |   |                               | 4.9        | %      |        |        | 15.8   | %            |   |        | 18.4      | %          |   |         | (2.3        | )%     |                                |   | 8.8    | %                |   |   | 7.0 | % |   |   | 8.5 | % |
| Available                  seat miles (ASMs)      |   |                               | (4.6       | )%     |        |        | 5.1    | %            |   |        | 4.6       | %          |   |         | (13.5       | )%     |                                |   | (1.5   | )%               |   |   | 1.3 | % |   |   | (1.3 | )% |
| Revenue                  passenger miles (RPMs)   |   |                               | (1.8       | )%     |        |        | 3.4    | %            |   |        | 4.2       | %          |   |         | (15.3       | )%     |                                |   | (0.3   | )%               |   |   | 1.1 | % |   |   | (0.1 | )% |
| Load                  factor (points)             |   | 2.4                                |  pts. |   | (1.4        | )pts.  | (0.3   | )pts.   | (1.8   | )pts.  | 1.1       |  pts. |   | (0.2         | )pts.  | 0.9    |  pts.                          |
| Yield                  (a)                        |   |                               | 7.0        | %      |        |        | 12.0   | %            |   |        | 14.9      | %          |   |         | 15.8        | %      |                                |   | 9.1    | %                |   |   | 5.8 | % |   |   | 8.7 | % |

----

*Critical Accounting Policies*

*Operating      Expenses. *

|                                                              |   | Three                Months Ended |   |   |   |   |   |   |   |
|-------------------------------------------------------------------|--------|-----------------------------------|--------|--------|--------|--------|--------|--------|--------|
| (In                  millions)                                    |   | September                30,      |   |   | $      |   |   | %      |   |
| **UAL**                                                           |   | 2007                              |   |   | 2006   |   |   | Change |   |   | Change |   |
| Aircraft                fuel                                      |   | $                                 | 1,324  |   |   | $      | 1,368  |   |   | $ | (44 | ) |   |   | (3.2 | ) |
| Salaries                and related costs                         |   |                              | 1,062  |   |   |   | 1,060  |   |   |   | 2 |   |   |   | 0.2 |   |
| Regional                affiliates                                |   |                              | 751    |   |   |   | 713    |   |   |   | 38 |   |   |   | 5.3 |   |
| Purchased                services                                 |   |                              | 344    |   |   |   | 302    |   |   |   | 42 |   |   |   | 13.9 |   |
| Aircraft                maintenance materials and outside repairs |   |                              | 295    |   |   |   | 252    |   |   |   | 43 |   |   |   | 17.1 |   |
| Depreciation                and amortization                      |   |                              | 245    |   |   |   | 226    |   |   |   | 19 |   |   |   | 8.4 |   |
| Distribution                expenses                              |   |                              | 211    |   |   |   | 215    |   |   |   | (4 | ) |   |   | (1.9 | ) |
| Landing                fees and other rent                        |   |                              | 201    |   |   |   | 199    |   |   |   | 2 |   |   |   | 1.0 |   |
| Aircraft                rent                                      |   |                              | 102    |   |   |   | 104    |   |   |   | (2 | ) |   |   | (1.9 | ) |
| Cost                of third party sales                          |   |                              | 68     |   |   |   | 153    |   |   |   | (85 | ) |   |   | (55.6 | ) |
| Special                operating items                            |   |                              | (22    | )      |   |   | (30    | )      |   |   | 8 |   |   |   | 26.7 |   |
| Other                operating expenses                           |   |                              | 290    |   |   |   | 279    |   |   |   | 11 |   |   |   | 3.9 |   |
|                                                              |   | $                                 | 4,871  |   |   | $      | 4,841  |   |   | $ | 30 |   |   |   | 0.6 |   |
|                                                              |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                              |   | Three                Months Ended |   |   |   |   |   |   |   |
|-------------------------------------------------------------------|--------|-----------------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                                              |   | September                30,      |   |   | $      |   |   | %      |   |
| (In                millions)                                      |   | 2007                              |   |   | 2006   |   |   | Change |   |   | Change |   |
| **United**                                                        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Aircraft                fuel                                      |   | $                                 | 1,324  |   |   | $      | 1,368  |   |   | $ | (44 | ) |   |   | (3.2 | ) |
| Salaries                and related costs                         |   |                              | 1,059  |   |   |   | 1,059  |   |   |   | - |   |   |   | - |   |
| Regional                affiliates                                |   |                              | 751    |   |   |   | 713    |   |   |   | 38 |   |   |   | 5.3 |   |
| Purchased                services                                 |   |                              | 344    |   |   |   | 301    |   |   |   | 43 |   |   |   | 14.3 |   |
| Aircraft                maintenance materials and outside repairs |   |                              | 295    |   |   |   | 252    |   |   |   | 43 |   |   |   | 17.1 |   |
| Depreciation                and amortization                      |   |                              | 245    |   |   |   | 225    |   |   |   | 20 |   |   |   | 8.9 |   |
| Distribution                expenses                              |   |                              | 211    |   |   |   | 215    |   |   |   | (4 | ) |   |   | (1.9 | ) |
| Landing                fees and other rent                        |   |                              | 201    |   |   |   | 199    |   |   |   | 2 |   |   |   | 1.0 |   |
| Aircraft                rent                                      |   |                              | 102    |   |   |   | 104    |   |   |   | (2 | ) |   |   | (1.9 | ) |
| Cost                of third party sales                          |   |                              | 67     |   |   |   | 150    |   |   |   | (83 | ) |   |   | (55.3 | ) |
| Special                operating items                            |   |                              | (22    | )      |   |   | (30    | )      |   |   | 8 |   |   |   | 26.7 |   |
| Other                operating expenses                           |   |                              | 291    |   |   |   | 281    |   |   |   | 10 |   |   |   | 3.6 |   |
|                                                              |   | $                                 | 4,868  |   |   | $      | 4,837  |   |   | $ | 31 |   |   |   | 0.6 |   |

*Combined Notes to      Condensed Consolidated Financial Statements (Unaudited), *

----

*Combined Notes to Condensed Consolidated      Financial Statements (Unaudited) *

*Other      income (expense). *

|                                |   | Three                Months Ended |   |             |       |                      |         |                                                                                                               |
|-------------------------------------|--------|-----------------------------------|--------|------------------|------------|---------------------------|--------------|--------------------------------------------------------------------------------------------------------------------|
|                                |   | September                30,      |   |             | Favorable/ |                      |         | %                                                                                                                  |
| **UAL**                             |   | 2007                              |   |   2006 |       |   (Unfavorable) |    |        Change            |   |
| Interest                expense     |   | $                                 | (161   | )                |       | $                         | (164         | )                                                                                                                  |   | $ | 3 |   |   | 1.8 |   |
| Interest                income      |   |                              | 71     |             |       |                      | 72           |                                                                                                               |   |   | (1 | ) |   |  (1.4 | ) |
| Interest                capitalized |   |                              | 5      |             |       |                      | 3            |                                                                                                               |   |   | 2 |   |   |  66.7 |   |
| Miscellaneous,                net   |   |                              | (6     | )                |       |                      | 3            |                                                                                                               |   |   | (9 | ) |   | - |   |
|                                |   | $                                 | (91    | )                |       | $                         | (86          | )                                                                                                                  |   | $ | (5 | ) |   |  (5.8 | ) |
|                                |   |                              |   |             |       |                      |         |                                                                                                               |   |   |   |   |   |   |   |
| **United**                          |   |                              |   |             |       |                      |         |                                                                                                               |   |   |   |   |   |   |   |
| Interest                expense     |   | $                                 | (161   | )                |       | $                         | (165         | )                                                                                                                  |   | $ | 4 |   |   |  2.4 |   |
| Interest                income      |   |                              | 70     |             |       |                      | 79           |                                                                                                               |   |   | (9 | ) |   |  (11.4 | ) |
| Interest                capitalized |   |                              | 5      |             |       |                      | 3            |                                                                                                               |   |   | 2 |   |   |  66.7 |   |
| Miscellaneous,                net   |   |                              | (6     | )                |       |                      | 3            |                                                                                                               |   |   | (9 | ) |   |  - |   |
|                                |   | $                                 | (92    | )                |       | $                         | (80          | )                                                                                                                  |   | $ | (12 | ) |   |  (15.0 | ) |

*Condensed Statements of Consolidated Financial Position (Unaudited).*
*Liquidity and Capital Resources*

----

*Income      Taxes.*

* *
*Combined Notes to Condensed Consolidated Financial      Statements (Unaudited),*

***First      Nine Months of 2007 Compared to First Nine Months of      2006***

*Results of      Operations,*

*Combined Notes to Condensed Consolidated Financial Statements      (Unaudited)*

*Operating      Revenues.*
* *

|                                                    |   | Successor                    |   |   | Combined                     |   |   | Successor                    |   |   | Predecessor                 |   |   |    |   |   |                                                                                  |   |
|---------------------------------------------------------|--------|------------------------------|--------|--------|------------------------------|--------|--------|------------------------------|--------|--------|-----------------------------|--------|--------|---------|--------|--------|---------------------------------------------------------------------------------------|--------|
|                                                    |   | Nine                         |   |   | Nine                         |   |   |                         |   |   |                        |   |   |    |   |   |                                                                                  |   |
|                                                    |   | Months                       |   |   | Months                       |   |   | Period                from   |   |   | Period                from  |   |   |    |   |   |                                                                                  |   |
|                                                    |   | Ended                        |   |   | Ended                        |   |   | February                1 to |   |   | January                1 to |   |   |    |   |   |                                                                                  |   |
| (In                millions)                            |   | September                30, |   |   | September                30, |   |   | September                30, |   |   | January                31,  |   |   |  $ |   |   |               % |   |
| **UAL**                                                 |   | 2007                         |   |   | 2006                (a)      |   |   | 2006                         |   |   | 2006                        |   |   | Change  |   |   | Change                                                                                |   |
| Passenger                - United Airlines              |   | $                            | 11,457 |   |                         | $      | 10,978 |                         |   | $      | 9,904                       |   |   | $       | 1,074  |   |                                                                                  | $      | 479 |   |   |   | 4.4 |   |
| Passenger                - Regional Affiliates          |   |                         | 2,298  |   |                         |   | 2,203  |                         |   |   | 1,999                       |   |   |    | 204    |   |                                                                                  |   | 95 |   |   |   | 4.3 |   |
| Cargo                                                   |   |                         | 547    |   |                         |   | 557    |                         |   |   | 501                         |   |   |    | 56     |   |                                                                                  |   | (10 | ) |   |   | (1.8 | ) |
| Special                operating items                  |   |                         | 45     |   |                         |   | -      |                         |   |   | -                           |   |   |    | -      |   |                                                                                  |   | 45 |   |   |   | - |   |
|    Other              operating revenues |   |                         | 766    |   |                         |   | 1,016  |                         |   |   | 892                         |   |   |    | 124    |   |                                                                                  |   | (250 | ) |   |   | (24.6 | ) |
|                                                    |   | $                            | 15,113 |   |                         | $      | 14,754 |                         |   | $      | 13,296                      |   |   | $       | 1,458  |   |                                                                                  | $      | 359 |   |   |   | 2.4 |   |
|                                                    |   |                         |   |   |                         |   |   |                         |   |   |                        |   |   |    |   |   |                                                                                  |   |   |   |   |   |   |   |
| **United**                                              |   |                         |   |   |                         |   |   |                         |   |   |                        |   |   |    |   |   |                                                                                  |   |   |   |   |   |   |   |
| Passenger                - United Airlines              |   | $                            | 11,457 |   |                         | $      | 10,978 |                         |   | $      | 9,904                       |   |   | $       | 1,074  |   |                                                                                  | $      | 479 |   |   |   | 4.4 |   |
| Passenger                - Regional Affiliates          |   |                         | 2,298  |   |                         |   | 2,203  |                         |   |   | 1,999                       |   |   |    | 204    |   |                                                                                  |   | 95 |   |   |   | 4.3 |   |
| Cargo                                                   |   |                         | 547    |   |                         |   | 557    |                         |   |   | 501                         |   |   |    | 56     |   |                                                                                  |   | (10 | ) |   |   | (1.8 | ) |
| Special                operating items                  |   |                         | 45     |   |                         |   | -      |                         |   |   | -                           |   |   |    | -      |   |                                                                                  |   | 45 |   |   |   | - |   |
|    Other              operating revenues |   |                         | 776    |   |                         |   | 1,009  |                         |   |   | 889                         |   |   |    | 120    |   |                                                                                  |   | (233 | ) |   |   | (23.1 | ) |
|                                                    |   | $                            | 15,123 |   |                         | $      | 14,747 |                         |   | $      | 13,293                      |   |   | $       | 1,454  |   |                                                                                  | $      | 376 |   |   |   | 2.5 |   |
| _______________________                            |   |                         |   |   |                         |   |   |                         |   |   |                        |   |   |    |   |   |                                                                                  |   |   |   |   |   |   |   |

| (a) | The                combined period includes the results for the one month period ended                January 31, 2006 (Predecessor) and the eight month period ended                September 30, 2006 (Successor). |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  **2007**                                      |   | **North                  America** |       |   | **Pacific** |        |   | **Atlantic** |   |   | **Latin** |   |   | **Mainline** |   |   | **United                  Express** |   |       | **Consolidated** |   |
|-----------------------------------------------------|--------|------------------------------------|------------|--------|-------------|-------------|--------|--------------|--------|--------|-----------|--------|--------|--------------|--------|--------|-------------------------------------|--------|------------|------------------|--------|
| Increase                  (decrease) from 2006 (a): |   |                               |       |   |        |        |   |         |   |   |      |   |   |         |   |   |                                |   |       |             |   |
| Passenger                  revenues (in millions)   |   | $                                  | (18        | )      |        | $           | 246    |         |   | $      | 296       |   |   | $            | (8     | )      |                                | $      | 516        |             |   | $ | 103 |   |   | $ | 619 |   |
| Passenger                  revenues                 |   |                               | (0.3       | )%     |        |        | 11.3   | %            |   |   | 20.2      | %      |   |         | (2.2   | )%     |                                |   | 4.7        | %                |   |   | 4.7 | % |   |   | 4.7 | % |
| Available                  seat miles (ASMs)        |   |                               | (2.7       | )%     |        |        | 2.3    | %            |   |   | 6.7       | %      |   |         | (12.8  | )%     |                                |   | (0.8       | )%               |   |   | 4.5 | % |   |   | (0.3 | )% |
| Revenue                  passenger miles (RPMs)     |   |                               | (0.5       | )%     |        |        | 1.1    | %            |   |   | 6.8       | %      |   |         | (13.4  | )%     |                                |   | 0.3        | %                |   |   | 4.5 | % |   |   | 0.7 | % |
| Load                  factor (points)               |   | 1.9                                |  pts. |   | (0.9        | )pts.  | -      |  pts.   |   | (0.5   | )pts.     |   | 0.9    |  pts.   |   | (0.1   | )pts.                          | 0.7    |  pts. |
| Yield                  (b)                          |   |                               | 0.3        | %      |        |        | 10.0   | %            |   |   | 13.2      | %      |   |         | 13.1   | %      |                                |   | 4.4        | %                |   |   | (0.1 | )% |   |   | 4.0 | % |

| (a) | Variances                are from the combined 2006 period that includes the results for the                one                month period ended January 31, 2006 (Predecessor) and the eight month                period ended September 30, 2006                (Successor). |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Yield                is a measure of average price paid per passenger mile, which is calculated                by dividing passenger revenues by RPMs. Yields for geographic regions                exclude charter revenue and RPMs. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Critical Accounting Policies*

----

*Results of Operations*

*Operating      Expenses. *

|                                                                   |   | Successor                    |   |   | Combined                     |   |   | Successor                    |   |   | Predecessor                 |   |   |    |   |   |          |   |
|------------------------------------------------------------------------|--------|------------------------------|--------|--------|------------------------------|--------|--------|------------------------------|--------|--------|-----------------------------|--------|--------|---------|--------|--------|---------------|--------|
|                                                                   |   | Nine                Months   |   |   | Nine                Months   |   |   | Period                from   |   |   | Period                from  |   |   |    |   |   |          |   |
|                                                                   |   | Ended                        |   |   | Ended                        |   |   | February                1 to |   |   | January                1 to |   |   |    |   |   |          |   |
|                                                                   |   | September                30, |   |   | September                30, |   |   | September                30, |   |   | January                31,  |   |   |  $ |   |   |   % |   |
| (In                millions)                                           |   | 2007                         |   |   | 2006                (a)      |   |   | 2006                         |   |   | 2006                        |   |   | Change  |   |   | Change        |   |
| **UAL**                                                                |   |                         |   |   |                         |   |   |                         |   |   |                        |   |   |    |   |   |          |   |   |
| Aircraft                fuel                                           |   | $                            | 3,571  |   |                         | $      | 3,685  |                         |   | $      | 3,323                       |   |   | $       | 362    |   |          | $      | (114 | ) |   |   | (3.1 | ) |
| Salaries                and related costs                              |   |                         | 3,149  |   |                         |   | 3,215  |                         |   |   | 2,857                       |   |   |    | 358    |   |          |   | (66 | ) |   |   | (2.1 | ) |
| Regional                affiliates                                     |   |                         | 2,176  |   |                         |   | 2,124  |                         |   |   | 1,896                       |   |   |    | 228    |   |          |   | 52 |   |   |   | 2.4 |   |
| Purchased                services                                      |   |                         | 980    |   |                         |   | 927    |                         |   |   | 829                         |   |   |    | 98     |   |          |   | 53 |   |   |   | 5.7 |   |
| Aircraft                maintenance materials and outside repairs |   |                         | 860    |   |                         |   | 768    |                         |   |   | 688                         |   |   |    | 80     |   |          |   | 92 |   |   |   | 12.0 |   |
| Depreciation                and amortization                           |   |                         | 694    |   |                         |   | 660    |                         |   |   | 592                         |   |   |    | 68     |   |          |   | 34 |   |   |   | 5.2 |   |
| Landing                fees and other rent                             |   |                         | 654    |   |                         |   | 644    |                         |   |   | 569                         |   |   |    | 75     |   |          |   | 10 |   |   |   | 1.6 |   |
| Distribution                expenses                                   |   |                         | 596    |   |                         |   | 624    |                         |   |   | 564                         |   |   |    | 60     |   |          |   | (28 | ) |   |   | (4.5 | ) |
| Aircraft                rent                                           |   |                         | 307    |   |                         |   | 318    |                         |   |   | 288                         |   |   |    | 30     |   |          |   | (11 | ) |   |   | (3.5 | ) |
| Cost                of third party sales                               |   |                         | 238    |   |                         |   | 536    |                         |   |   | 471                         |   |   |    | 65     |   |          |   | (298 | ) |   |   | (55.6 | ) |
| Special                operating items                                 |   |                         | (44    | )      |                         |   | (30    | )                            |   |   | (30                         | )      |   |    | -      |   |          |   | (14 | ) |   |   | (46.7 | ) |
| Other                operating expenses                                |   |                         | 831    |   |                         |   | 859    |                         |   |   | 773                         |   |   |    | 86     |   |          |   | (28 | ) |   |   | (3.3 | ) |
|                                                                   |   | $                            | 14,012 |   |                         | $      | 14,330 |                         |   | $      | 12,820                      |   |   | $       | 1,510  |   |          | $      | (318 | ) |   |   | (2.2 | ) |
|                                                                   |   |                         |   |   |                         |   |   |                         |   |   |                        |   |   |    |   |   |          |   |   |   |   |   |   |   |
| **United**                                                             |   |                         |   |   |                         |   |   |                         |   |   |                        |   |   |    |   |   |          |   |   |   |   |   |   |   |
| Aircraft                fuel                                           |   | $                            | 3,571  |   |                         | $      | 3,685  |                         |   | $      | 3,323                       |   |   | $       | 362    |   |          | $      | (114 | ) |   |   | (3.1 | ) |
| Salaries                and related costs                              |   |                         | 3,145  |   |                         |   | 3,212  |                         |   |   | 2,854                       |   |   |    | 358    |   |          |   | (67 | ) |   |   | (2.1 | ) |
| Regional                affiliates                                     |   |                         | 2,176  |   |                         |   | 2,124  |                         |   |   | 1,896                       |   |   |    | 228    |   |          |   | 52 |   |   |   | 2.4 |   |
| Purchased                services                                      |   |                         | 980    |   |                         |   | 925    |                         |   |   | 828                         |   |   |    | 97     |   |          |   | 55 |   |   |   | 5.9 |   |
| Aircraft                maintenance materials and outside repairs      |   |                         | 860    |   |                         |   | 768    |                         |   |   | 688                         |   |   |    | 80     |   |          |   | 92 |   |   |   | 12.0 |   |
| Depreciation                and amortization                           |   |                         | 694    |   |                         |   | 659    |                         |   |   | 591                         |   |   |    | 68     |   |          |   | 35 |   |   |   | 5.3 |   |
| Landing                fees and other rent                             |   |                         | 654    |   |                         |   | 644    |                         |   |   | 569                         |   |   |    | 75     |   |          |   | 10 |   |   |   | 1.6 |   |
| Distribution                expenses                                   |   |                         | 596    |   |                         |   | 624    |                         |   |   | 564                         |   |   |    | 60     |   |          |   | (28 | ) |   |   | (4.5 | ) |
| Aircraft                rent                                           |   |                         | 308    |   |                         |   | 319    |                         |   |   | 289                         |   |   |    | 30     |   |          |   | (11 | ) |   |   | (3.4 | ) |
| Cost                of third party sales                               |   |                         | 235    |   |                         |   | 527    |                         |   |   | 464                         |   |   |    | 63     |   |          |   | (292 | ) |   |   | (55.4 | ) |
| Special                operating items                                 |   |                         | (44    | )      |                         |   | (30    | )                            |   |   | (30                         | )      |   |    | -      |   |          |   | (14 | ) |   |   | (46.7 | ) |
| Other                operating expenses                                |   |                         | 831    |   |                         |   | 856    |                         |   |   | 771                         |   |   |    | 85     |   |          |   | (25 | ) |   |   | (2.9 | ) |
|                                                                   |   | $                            | 14,006 |   |                         | $      | 14,313 |                         |   | $      | 12,807                      |   |   | $       | 1,506  |   |          | $      | (307 | ) |   |   | (2.1 | ) |

| (a) | The                combined period includes the results for the one month ended                January 31, 2006 (Predecessor) and the eight months ended                September 30, 2006 (Successor). |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Combined Notes to Condensed Consolidated Financial Statements      (Unaudited) *

*Other      income (expense).*

|                                |   | Successor                    |   |   | Combined                      |   |   | Successor                    |   |   | Predecessor                 |   |   |                |   |   |         |   |
|-------------------------------------|--------|------------------------------|--------|--------|-------------------------------|--------|--------|------------------------------|--------|--------|-----------------------------|--------|--------|---------------------|--------|--------|--------------|--------|
|                                |   | Nine                Months   |   |   | Nine                Months    |   |   | Period                from   |   |   | Period                from  |   |   |                |   |   |         |   |
|                                |   | Ended                        |   |   | Ended                         |   |   | February                1 to |   |   | January                1 to |   |   |                |   |   |         |   |
|  (In                millions)  |   | September                30, |   |   | September                30,  |   |   | September                30, |   |   | January                31,  |   |   | Favorable/          |   |   | %            |   |
| **UAL**                             |   |  2007                   |   |   |  2006                (a) |   |   |  2006                   |   |   |  2006                  |   |   |  (Unfavorable) |   |   |  Change |   |
| Interest                expense     |   | $                            | (506   | )      |                          | $      | (558   | )                            |   | $      | (516                        | )      |   | $                   | (42    | )      |         | $      | 52 |   |   |   | 9.3 |   |
| Interest                income      |   |                         | 191    |   |                          |   | 173    |                         |   |   | 167                         |   |   |                | 6      |   |         |   | 18 |   |   |   | 10.4 |   |
| Interest                capitalized |   |                         | 14     |   |                          |   | 10     |                         |   |   | 10                          |   |   |                | -      |   |         |   | 4 |   |   |   | 40.0 |   |
| Miscellaneous,                net   |   |                         | (7     | )      |                          |   | 5      |                         |   |   | 5                           |   |   |                | -      |   |         |   | (12 | ) |   |   | - |   |
|                                |   | $                            | (308   | )      |                          | $      | (370   | )                            |   | $      | (334                        | )      |   | $                   | (36    | )      |         | $      | 62 |   |   |   | 16.8 |   |
|                                |   |                         |   |   |                          |   |   |                         |   |   |                        |   |   |                |   |   |         |   |   |   |   |   |   |   |
| **United**                          |   |                         |   |   |                          |   |   |                         |   |   |                        |   |   |                |   |   |         |   |   |   |   |   |   |   |
| Interest                expense     |   | $                            | (506   | )      |                          | $      | (560   | )                            |   | $      | (518                        | )      |   | $                   | (42    | )      |         | $      | 54 |   |   |   | 9.6 |   |
| Interest                income      |   |                         | 194    |   |                          |   | 178    |                         |   |   | 172                         |   |   |                | 6      |   |         |   | 16 |   |   |   | 9.0 |   |
| Interest                capitalized |   |                         | 14     |   |                          |   | 10     |                         |   |   | 10                          |   |   |                | -      |   |         |   | 4 |   |   |   | 40.0 |   |
| Miscellaneous,                net   |   |                         | (7     | )      |                          |   | 2      |                         |   |   | 2                           |   |   |                | -      |   |         |   | (9 | ) |   |   | - |   |
|                                |   | $                            | (305   | )      |                          | $      | (370   | )                            |   | $      | (334                        | )      |   | $                   | (36    | )      |         | $      | 65 |   |   |   | 17.6 |   |

*Income      Taxes.*
* *
*Combined Notes      to Condensed Consolidated Financial Statements (Unaudited) *

----

**Liquidity      and Capital Resources**

|                                                              |   | UAL                                               |   |   | UNITED                                               |   |
|-------------------------------------------------------------------|--------|---------------------------------------------------|--------|--------|------------------------------------------------------|--------|
| (In                millions)                                      |   | As                of September 30, 2007 |   |   | As                ofDecember                31, 2006 |   |   | As                of September 30, 2007 |   |   | As                of December 31, 2006 |   |
| Cash,                short-term investments & restricted cash |   | $                                                 | 4,950  |   |                                                 | $      | 4,991 |   |   | $ | 4,861 |   |   | $ | 4,896 |   |
| Restricted                cash included in total cash             |   |                                              | 788    |   |                                                 |   | 847 |   |   |   | 755 |   |   |   | 809 |   |
|                                                              |   |                                              |   |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
|                                                              |   | Successor                                         |   |   | Combined                                             |   |   | Successor |   |   | Predecessor |   |
|                                                              |   |  Nine                Months                  |   |   |  Nine                Months                     |   |   |  Period                from |   |   |  Period                from |   |
|                                                              |   |  Ended                                  |   |   |  Ended                                          |   |   |  February                1 to |   |   |  January                1 to |   |
|                                                              |   |  September                30,                |   |   |  September                30,              |   |   |  September                30,  |   |   |  January                31, |   |
| **UAL**                                                           |   |  2007                                        |   |   | 2006                (a)                              |   |   |  2006 |   |   |  2006 |   |
| Net                cash provided by operating activities          |   | $                                                 | 2,002  |   |                                                 | $      | 1,269 |   |   | $ | 1,108 |   |   | $ | 161 |   |
| Net                cash provided (used) by investing activities   |   |                                              | (3,057 | )      |                                                 |   | 151 |   |   |   | 389 |   |   |   | (238 | ) |
| Net                cash provided (used) by financing activities   |   |                                              | (1,514 | )      |                                                 |   | 923 |   |   |   | 953 |   |   |   | (30 | ) |
|                                                              |   |                                              |   |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **United**                                                        |   |                                              |   |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Net                cash provided by operating activities          |   | $                                                 | 1,988  |   |                                                 | $      | 1,287 |   |   | $ | 1,124 |   |   | $ | 163 |   |
| Net                cash provided (used) by investing activities   |   |                                              | (3,028 | )      |                                                 |   | 100 |   |   |   | 338 |   |   |   | (238 | ) |
| Net                cash provided (used) by financing activities   |   |                                              | (1,493 | )      |                                                 |   | 924 |   |   |   | 954 |   |   |   | (30 | ) |

*Operating      Activities.*
* *
*Results      of Operations*

*Investing      Activities.*

* *

----

*Financing      Activities.*
* *

*Combined Notes to Condensed      Consolidated Financial Statements (Unaudited)*

*Combined Notes to Condensed Consolidated Financial      Statements (Unaudited)*

*Other      Investing and Financing Matters.*

* *

**Critical      Accounting Policies**

*Management’s Discussion and Analysis      of Financial Condition and Results of Operation*

*Frequent      Flyer Accounting.*

*Goodwill      and Intangible Assets.*
* *
*Goodwill and Other Intangible Assets*

----

**Forward-Looking      Information**

*Management’s Discussion and Analysis of Financial      Condition and Results of Operations*

----

**ITEM      3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET      RISK**

*Item 7A. Quantitative and Qualitative Disclosures About Market Risk*

*Interest      Rate Risk—*
*Combined Notes to Condensed Consolidated Financial Statements      (Unaudited),*

*Commodity      Price Risk (Jet Fuel)—*

*Foreign      Exchange Risk*
*—*

**ITEM      4. CONTROLS AND PROCEDURES**

*Item 9A, Controls and Procedures*

*.*

*Internal      Controls Surrounding Accounting for Income Taxes*

----

**PART II.      OTHER INFORMATION**

**ITEM      1. LEGAL PROCEEDINGS.**

***In      re: UAL Corporation, et. al.***

*Combined Notes to Condensed Consolidated Financial      Statements (Unaudited).*

***Air      Cargo/Passenger Surcharge Investigations***

----

**ITEM      1A. RISK FACTORS.**

***Extensive      government regulation could increase the Company’s operating costs and restrict      its ability to conduct its business.***

*Combined Notes to Condensed Consolidated Financial Statements      (Unaudited)*

***The      Company’s certificate of incorporation limits voting rights of certain foreign      persons.***

***The      Company’s net operating loss carry forward may be      limited.***

----

**ITEM      2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF      PROCEEDS**

| **Period**                         |   | **Total number****of shares****purchased(a)** |   |   | **Average price****paid****per share** |   |   | **Total number of****shares purchased as****part of publicly****announced****plans****or programs** |   | **Maximum number of****shares (or approximate****dollar value) of shares****that may yet be****purchased under the****plans or programs** |
|------------------------------------|--------|---------------------------------------------------------|--------|--------|--------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 07/01/07                - 07/31/07 |   |                                                    | 634    |   |                                             | $      | 45.60  |                                                                                                                                   |   |  —                                                                                                                                                                                                   |   | (b) |
| 08/01/07                - 08/31/07 |   |                                                    | 1,089  |   |                                             |   | 42.45  |                                                                                                                                   |   |  —                                                                                                                                                                                                   |   | (b) |
| 09/01/07                - 09/30/07 |   |                                                    | 3,917  |   |                                             |   | 46.11  |                                                                                                                                   |   |  —                                                                                                                                                                                                   |   | (b) |
| Total                              |   |                                                    | 5,640  |   |                                             |   | 45.34  |                                                                                                                                   |   |  —                                                                                                                                                                                                   |   | (b) |

| (a) | Shares                withheld from employees to satisfy certain tax obligations due upon                the                vesting of restricted stock. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | The                MEIP provides for the withholding of shares to satisfy tax obligations                due                upon the vesting of restricted stock. The MEIP does not specify a                maximum                number of shares that may be                repurchased. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**ITEM      6. EXHIBITS.**

----

|   | **SIGNATURES** |
|--------|----------------|

|                                             | UAL                CORPORATION                                                              |
|--------------------------------------------------|---------------------------------------------------------------------------------------------|
|                                             | (Registrant)                                                                                |
|                                             |                                                                                        |
| Date:  October                31, 2007 | By:  /s/                Frederic F. Brace                                         |
|                                             |         Frederic                F. Brace            |
|                                             |         Executive                Vice President and |
|                                             |         Chief                Financial Officer      |
|                                             |         (principal                financial and     |
|                                             |         accounting                officer)          |
|                                             |                                                                                        |
|                                             |                                                                                        |
|                                             |                                                                                        |
|                                             |                                                                                        |
|                                             | UNITED                AIR LINES, INC.                                                       |
|                                             | (Registrant)                                                                                |
|                                             |                                                                                        |
| Date:  October                31, 2007 | By:  /s/                Frederic F. Brace                                         |
|                                             |         Frederic                F. Brace            |
|                                             |     Executive                Vice President and                         |
|                                             |     Chief                Financial Officer                              |
|                                             |     (principal                financial officer)                        |
|                                             |                                                                                        |
| Date:  October                31, 2007 | By:  /s/                David M. Wing                                             |
|                                             |         David                M. Wing                |
|                                             |     Vice                President and Controller                        |
|                                             |     (principal                accounting officer)                       |
|                                             |                                                                                        |

----

**EXHIBIT      INDEX**

|   | Registrant |                                                                                                                                                                                                                 |
|--------|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |       |                                                                                                                                                                                                                 |
| 12.1   | UAL        | UAL’s                Computation of Ratio of Earnings to Fixed Charges and Ratio of Earnings                to                Fixed Charges and Preferred Stock Dividend Requirements                          |
|   |       |                                                                                                                                                                                                                 |
| 12.2   | United     | United’s                Computation of Ratio of Earnings to Fixed Charges and Ratio of Earnings                to                Fixed Charges and Preferred Stock Dividend Requirements                       |
|   |       |                                                                                                                                                                                                                 |
| 31.1   | UAL        | Certification                of the Principal Executive Officer Pursuant to 15 U.S.C. 78m(a) or                78o(d) (Section 302 of the Sarbanes-Oxley Act of 2002) of                UAL           |
|   |       |                                                                                                                                                                                                                 |
| 31.2   | UAL        | Certification                of the Principal Financial Officer Pursuant to 15 U.S.C. 78m(a) or                78o(d) (Section 302 of the Sarbanes-Oxley Act of 2002) of                UAL           |
|   |       |                                                                                                                                                                                                                 |
| 31.3   | United     | Certification                of the Principal Executive Officer Pursuant to 15 U.S.C. 78m(a) or                78o(d) (Section 302 of the Sarbanes-Oxley Act of 2002) of                United        |
|   |       |                                                                                                                                                                                                                 |
| 31.4   | United     | Certification                of the Principal Financial Officer Pursuant to 15 U.S.C. 78m(a) or                78o(d) (Section 302 of the Sarbanes-Oxley Act of 2002) of                United        |
|   |       |                                                                                                                                                                                                                 |
| 32.1   | UAL        | Certification                of the Chief Executive Officer and Chief Financial Officer Pursuant                to 18                U.S.C. 1350 (Section 906 of the Sarbanes-Oxley Act of                2002) |
|   |       |                                                                                                                                                                                                                 |
| 32.2   | United     | Certification                of the Chief Executive Officer and Chief Financial Officer Pursuant                to 18                U.S.C. 1350 (Section 906 of the Sarbanes-Oxley Act of                2002) |