Management's discussion and analysis of financial condition and results of
operations is provided as a supplement to and should be read in conjunction with
the consolidated financial statements and related notes included elsewhere in
this Form 10-K and the description of our business and reportable segments in
Item 1 above to enhance the understanding of our results of operations,
financial condition and cash flows.

This section generally discusses 2021 and 2020 items and year-to-year
comparisons between 2021 and 2020. Discussions of 2019 items and year-to-year
comparisons between 2020 and 2019 are not included in this Form 10-K and can be
found in "Management's Discussion and Analysis of Financial Condition and
Results of Operations" in Part II, Item 7 of the Company's Annual Report on Form
10-K for the fiscal year ended December 31, 2020 filed with the U.S. Securities
and Exchange Commission (the "SEC") on March 1, 2021 (the "2020 Annual Report").

Executive Summary

Overview

United Airlines Holdings, Inc. (together with its consolidated subsidiaries,
"UAL" or the "Company") is a holding company and its principal, wholly-owned
subsidiary is United Airlines, Inc. (together with its consolidated
subsidiaries, "United"). The Company's shared purpose is "Connecting People.
Uniting the World." The Company has the most comprehensive route network among
North American carriers, including U.S. mainland hubs in Chicago, Denver,
Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C.

As UAL consolidates United for financial statement purposes, disclosures that
relate to activities of United also apply to UAL, unless otherwise noted.
United's operating revenues and operating expenses comprise nearly 100% of UAL's
revenues and operating expenses. In addition, United comprises approximately the
entire balance of UAL's assets, liabilities and operating cash flows. When
appropriate, UAL and United are named specifically for their individual
contractual obligations and related disclosures and any significant differences
between the operations and results of UAL and United are separately disclosed
and explained. We sometimes use the words "we," "our," "us," and the "Company"
in this report for disclosures that relate to all of UAL and United.

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Our business and operating results for 2021 continued to be significantly impacted by the COVID-19 pandemic. Given the more significant impact of the pandemic on our business and operating results in 2020, we believe that a comparison of our 2021 results to 2019 for certain key metrics in this financial overview discussion is more reflective of the impact of the COVID-19 pandemic.



Our current expectations described below are forward-looking statements and our
actual results and timing may vary materially based on various factors that
include, but are not limited to, those discussed below under "Cautionary
Statement Regarding Forward-Looking Statements" and in Part I, Item 1A. Risk
Factors, of this Form 10-K. The Company is unable to reconcile forward-looking
projections to accounting principles generally accepted in the United States of
America ("GAAP"); refer to "Supplemental Information" below for further details.

Impact of the COVID-19 Pandemic



The COVID-19 pandemic, together with the measures implemented or recommended by
governmental authorities and private organizations in response to the pandemic,
has had an adverse impact that has been material to the Company's business,
operating results, financial condition and liquidity. The Company has seen
increasing demand for travel both domestically and in countries where entry is
permitted; however, as the situation surrounding the COVID-19 pandemic remains
fluid, the pandemic has continued to negatively impact travel demand. It remains
difficult to reasonably assess or predict the full extent of the ongoing impact
of the COVID-19 pandemic on the Company's longer-term operational and financial
performance, which will depend on a number of future developments, many of which
are outside the Company's control, such as the ultimate duration of and factors
impacting the recovery from the pandemic (including the efficacy and speed of
vaccination programs in curbing the spread of the virus in different markets,
the efficacy and availability of various treatment options, the introduction and
spread of new variants of the virus that may be resistant to currently approved
vaccines or treatment options, and the continuation of existing or
implementation of new government travel restrictions), customer behavior changes
and fluctuations in demand for air travel, among others. The COVID-19 pandemic
and the measures taken in response may continue to impact many aspects of our
business, operating results, financial condition and liquidity in a number of
ways, including labor shortages (including reductions in available skilled labor
and related impacts to the Company's flight schedules and reputation), facility
closures and related costs, disruptions to the Company's and its business
partners' operations, reduced travel demand and consumer spending, increased
fuel and other operating costs, supply chain disruptions, logistics constraints,
inflation, volatility in the price of our securities, our ability to access
capital markets and volatility in the global economy and financial markets
generally.

We have reduced our capacity as we managed through the effects of the COVID-19
pandemic, which in 2021 remained significantly lower than capacity prior to the
pandemic and resulted in a significant reduction to our revenue through the date
of this report. We operated at approximately 63% of our full year 2019 capacity
during the full year of 2021. We have delayed a portion of our previously
planned capacity increases for full year 2022 and may need to implement further
modifications. The Company is taking steps to be prepared for recovery as demand
for travel continues to generally increase, which include investing in
innovative technology, focusing on process improvements and implementing the
United Next transformative strategy.

We have taken steps to strengthen our financial position during this period of
market uncertainty, which has resulted in an increase of our overall debt
levels. As of December 31, 2021, unrestricted cash, cash equivalents and
short-term investments totaled $18.4 billion, an increase of approximately $13.5
billion from December 31, 2019. We had approximately $41.1 billion of debt,
finance lease, operating lease and sale-leaseback obligations as of December 31,
2021 (including $4.5 billion that will become due in the next 12 months), up
from approximately $20.5 billion as of December 31, 2019.

The Company's recovery from the COVID-19 pandemic has not followed a linear
path, and due to the significant uncertainty that remains, its future operating
performance, particularly in the short-term, may be subject to volatility. Risks
and uncertainties related to the COVID-19 pandemic are further described in Part
I, Item 1A. Risk Factors- "The COVID-19 pandemic has materially and adversely
impacted our business, operating results, financial condition and liquidity. The
full extent of the impact will depend on future developments and how quickly we
can return to more normal operations, among other things. If the impacts from
the COVID-19 pandemic extend beyond our assumed timelines, our actual results
may vary significantly from our expectations" of this report.

Outlook for Full Year 2022

Capacity. The Company expects its scheduled capacity for full year 2022 to be down versus 2019.

Adjusted cost per available seat mile ("CASM-ex"). The Company expects full year 2022 CASM-ex (a non-GAAP financial measure defined as CASM excluding fuel, profit sharing, third-party business expense and special charges; see "Supplemental Information" below) to be higher than 2019.


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Strategic Objectives



In the second quarter of 2021, United announced its United Next plan, which we
believe will have a transformational effect on the customer experience and
earnings power of the business. It is expected to increase United's average
gauge in North America, the total number of available seats per departure, by
almost 30% by 2026 versus 2019, as well as significantly lower carbon emissions
per seat. New aircraft will come with a new signature interior that includes
seat-back entertainment in every seat, larger overhead bins for every
passenger's carry-on bag and the industry's fastest available in-flight WiFi, as
well as a bright look-and-feel with LED lighting. New aircraft are expected to
increase North America premium seat counts by 75% per short-haul departure by
2026 versus 2019. The Company plans to replace older, smaller mainline jets and
at least 200 single-class regional jets with larger aircraft, which we expect
will lead to significant sustainability benefits compared to older planes: an
expected 11% overall improvement in fuel efficiency and an expected 17-20% lower
carbon emission per seat compared to older planes. We believe United Next will
allow us to differentiate our network and segment our products with a greater
premium offering, while also maintaining fare competitiveness with low-cost
carriers.

Results of Operations



Select financial data and operating statistics are provided in the tables below:

(in millions)                      2021          2020          2019
Operating revenue               $ 24,634      $ 15,355      $ 43,259
Operating expense                 25,656        21,714        38,958
Operating income (loss)           (1,022)       (6,359)        4,301
Nonoperating expense, net         (1,535)       (2,463)         (387)
Income tax expense (benefit)        (593)       (1,753)          905
Net income (loss)               $ (1,964)     $ (7,069)     $  3,009



                                                            2021                     2020                    2019
Passengers (thousands) (a)                                       104,082                  57,761                 162,443
Revenue passenger miles ("RPMs") (millions) (b)                  128,979                  73,883                 239,360
ASMs (millions)                                                  178,684                 122,804                 284,999
Cargo revenue ton miles (millions) (c)                             3,285                   2,711                   3,329
Passenger load factor (d)                                        72.2  %                 60.2  %                 84.0  %
Passenger revenue per available seat mile ("PRASM")                11.30                    9.61                   13.90
Total revenue per available seat mile ("TRASM")                    13.79                   12.50                   15.18

Average yield per revenue passenger mile ("Yield") (e)

                                                                15.66                   15.98                   16.55
CASM                                                               14.36                   17.68                   13.67
Average stage length (miles) (f)                                   1,315                   1,307                   1,460
Employee headcount, as of December 31                             84,100                  74,400                  95,900
(a)The number of revenue passengers measured by each flight segment flown.
(b)The number of scheduled miles flown by revenue passengers.
(c)The number of cargo revenue tons transported multiplied by the number of miles flown.
(d)RPMs divided by ASMs.
(e)The average passenger revenue received for each revenue passenger mile flown.
(f)Average stage length equals the average distance a flight travels weighted for size of aircraft.


Operating Revenue. The table below illustrates the year-over-year percentage
change in the Company's operating revenues for the years ended December 31 (in
millions, except percentage changes):

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                              2021          2020        Increase (Decrease)       % Change

Passenger revenue          $ 20,197      $ 11,805      $              8,392        71.1
Cargo                         2,349         1,648                       701        42.5
Other operating revenue       2,088         1,902                       186         9.8
Total operating revenue    $ 24,634      $ 15,355      $              9,279        60.4


The table below presents passenger revenue and select operating data of the
Company, broken out by geographic region, expressed as year-over-year changes:

                                                         Increase (decrease) from 2020:
                                        Domestic      Atlantic       Pacific       Latin         Total
Passenger revenue (in millions)        $ 6,727       $    795       $ (307)      $ 1,177       $ 8,392
Passenger revenue                         83.2  %        52.6  %     (33.4) %       91.5  %       71.1  %
Average fare per passenger                 1.8  %        (9.5) %      21.9  %      (12.9) %       (5.1) %
Yield                                     (2.0) %       (10.9) %      49.0  %       (7.7) %       (2.0) %
PRASM                                     23.8  %         7.4  %     (18.3) %       (2.3) %       17.6  %
Passengers                                79.9  %        68.5  %     (45.4) %      119.9  %       80.2  %
RPMs                                      86.9  %        71.3  %     (55.3) %      107.6  %       74.6  %
ASMs                                      48.0  %        42.2  %     (18.3) %       96.2  %       45.5  %
Passenger load factor (points)            16.7           10.2        (23.9) 

3.8 12.0




Passenger revenue increased $8.4 billion, or 71.1%, in 2021 as compared to 2020,
primarily due to an increase in the demand for air travel as a result of the
increased availability of COVID-19 vaccines and the easing of travel and
quarantine restrictions in the United States and various other jurisdictions.

Cargo revenue increased $701 million, or 42.5%, in 2021 as compared to 2020,
primarily due to stronger yields on freight revenue and higher cargo tonnage
from increased wide-body departures of passenger flights as well as cargo-only
flights.

Other operating revenue increased $186 million, or 9.8%, in 2021 as compared to
2020, primarily due to an increase in mileage revenue from non-airline partners,
including the Company's co-branded credit card partner, JPMorgan Chase Bank,
N.A.

Operating Expense. The table below includes data related to the Company's
operating expense for the years ended December 31 (in millions, except
percentage changes):

                                                                                   Increase
                                              2021               2020             (Decrease)              % Change
Salaries and related costs                $   9,566          $   9,522          $         44                  0.5
Aircraft fuel                                 5,755              3,153                 2,602                 82.5
Depreciation and amortization                 2,485              2,488                    (3)                (0.1)
Landing fees and other rent                   2,416              2,127                   289                 13.6
Regional capacity purchase                    2,147              2,039                   108                  5.3
Aircraft maintenance materials and
outside repairs                               1,316                858                   458                 53.4
Distribution expenses                           677                459                   218                 47.5
Aircraft rent                                   228                198                    30                 15.2
Special charges (credits)                    (3,367)            (2,616)                  751                        NM
Other operating expenses                      4,433              3,486                   947                 27.2
Total operating expenses                  $  25,656          $  21,714          $      3,942                 18.2


Salaries and related costs increased $44 million, or 0.5%, in 2021 as compared
to 2020, primarily due to an increase in front-line employees' wages as a result
of higher flight activity, partially offset by a $225 million increase in tax
credits provided by the Employee Retention Credit under the CARES Act.

Aircraft fuel expense increased $2.6 billion, or 82.5%, in 2021 as compared to
2020. The table below presents the significant changes in aircraft fuel cost per
gallon for the years ended December 31 (in millions, except percentage changes
and per gallon data):

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                                                                     %
                                         2021         2020        Change

Fuel expense                           $ 5,755      $ 3,153       82.5

Total fuel consumption (gallons) 2,729 2,004 36.2 Average price per gallon

$  2.11      $  1.57       34.4


Landing fees and other rent increased $289 million, or 13.6%, in 2021 as compared to 2020, primarily due to an increase in the number of flights and passengers. The increase was not directly proportionate to the volume of activity as some landing fees and other rents are fixed.

Regional capacity purchase costs increased $108 million, or 5.3%, in 2021 as compared to 2020, primarily due to increased regional flying and increased pass-through maintenance costs.



Aircraft maintenance materials and outside repairs increased $458 million, or
53.4%, in 2021 as compared to 2020, primarily due to higher volumes of flying
and increased heavy check maintenance events.

Distribution expenses increased $218 million, or 47.5%, in 2021 as compared to 2020, primarily due to higher credit card fees and commissions and a higher volume of global distribution fees as a result of the overall increase in passenger revenue. Distribution expenses were also impacted by the mix of leisure travel versus business travel, which requires the use of different distribution channels and forms of payment.

The table below presents special charges (credits) recorded by the Company during the years ended December 31 (in millions):



                                                                    2021          2020
  CARES Act grant                                                $ (4,021)     $ (3,536)
  Severance and benefit costs                                         438           575
  Impairment of assets                                                 97           318
  (Gains) losses on sale of assets and other special charges          119            27
  Total special charges (credits)                                $ (3,367)     $ (2,616)

See Note 14 to the financial statements included in Part II, Item 8 of this report for additional information.



Other operating expenses increased $947 million, or 27.2%, in 2021 as compared
to 2020, primarily due to increases in ground handling, passenger services and
personnel-related costs as a direct result of increased flying and higher
expenditures on information technology projects.

Nonoperating Income (Expense). The following table illustrates the
year-over-year dollar and percentage changes in the Company's nonoperating
income (expense) for the years ended December 31 (in millions, except percentage
changes):

                                                                                    Increase
                                              2021               2020              (Decrease)              % Change
Interest expense                          $  (1,657)         $  (1,063)         $         594                  55.9
Interest capitalized                             80                 71                      9                  12.7
Interest income                                  36                 50                    (14)                (28.0)
Unrealized gains (losses) on investments,
net                                             (34)              (194)                  (160)                (82.5)
Miscellaneous, net                               40             (1,327)                (1,367)                        NM
Total nonoperating expense, net           $  (1,535)         $  (2,463)         $        (928)                (37.7)


Interest expense increased $594 million, or 55.9%, in 2021 as compared to 2020,
primarily due to the issuance of additional debt, mainly in the second half of
2020 and first half of 2021, to provide additional liquidity to the Company
during the COVID-19 pandemic.

Unrealized losses on investments, net decreased $160 million in 2021 as compared
to 2020, primarily due to the change in the market value of the Company's
investments in equity securities. See Notes 9 and 14 to the financial statements
included in Part II, Item 8 of this report for additional information.

Miscellaneous, net expense decreased $1.4 billion in 2021 as compared to 2020,
primarily due to the $697 million of credit loss allowances associated with the
Company's Term Loan Agreement with, among others, BRW Aviation Holding LLC and
BRW Aviation LLC and the related guarantee and $687 million in settlement losses
and special termination benefits related to

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voluntary separation programs under the Company's defined benefit pension plan
covering certain non-pilot U.S. employees and postretirement medical programs
recorded in 2020. See Notes 7, 8, 13 and 14 to the financial statements included
in Part II, Item 8 of this report for additional information.

Income Taxes. See Note 6 to the financial statements included in Part II, Item 8 of this report for information related to income taxes.

Liquidity and Capital Resources



As of December 31, 2021, the Company had $18.4 billion in unrestricted cash,
cash equivalents and short-term investments, an increase of approximately $6.7
billion from December 31, 2020. We believe that our existing cash, cash
equivalents and short-term investments, together with cash generated from
operations, will be sufficient to satisfy our anticipated liquidity needs for
the next twelve months, and we expect to meet our long-term liquidity needs with
our anticipated access to the capital markets and projected cash from
operations. We regularly assess our anticipated working capital needs, debt and
leverage levels, debt maturities, capital expenditure requirements (including in
connection with our capital commitments for our firm order aircraft) and future
investments or acquisitions in order to maximize shareholder return, efficiently
finance our ongoing operations and maintain flexibility for future strategic
transactions. We also regularly evaluate our liquidity and capital structure to
ensure financial risks, adequate liquidity access and lower cost of capital are
efficiently managed. We expect to maintain an elevated level of liquidity in the
near term as we navigate through 2022, which may lead to the issuance of
additional debt securities, the repurchase or redemption of debt securities
prior to maturity or the issuance of common stock, as well as to the pursuit of
financing options for our firm aircraft orders and other related capital
expenditures consistent with our historical practice prior to the onset of the
COVID-19 pandemic. While we have been able to access the capital markets to meet
our significant long-term debt and finance lease obligations and future
commitments for capital expenditures, including the acquisition of aircraft and
related spare engines, we must return to profitability in order to service our
debt and maintain appropriate liquidity levels for our long-term operating
needs. For 2022, the Company expects approximately $5.9 billion of gross capital
expenditures (including expenditures for assets acquired through the issuance of
debt, finance leases and other financial liabilities). See Note 13 to the
financial statements included in Part II, Item 8 of this report for additional
information on commitments.

The Revolving Credit and Guaranty Agreement, under the Term Loan Credit and
Guaranty Agreement (the "2021 Term Loan Facility"), provides revolving loan
commitments of up to $1.75 billion until April 21, 2025, subject to certain
customary conditions. No borrowings were outstanding under this facility at
December 31, 2021. In addition, the Company has backstop financing commitments
available from certain of its aircraft manufacturers for a limited number of its
future aircraft deliveries, subject to certain customary conditions.

We have a significant amount of fixed obligations, including debt, leases of
aircraft, airport and other facilities, and pension funding obligations. As of
December 31, 2021, the Company had approximately $41.1 billion of debt, finance
lease, operating lease and sale-leaseback obligations, including $4.5 billion
that will become due in the next 12 months. In addition, we have substantial
noncancelable commitments for capital expenditures, including the acquisition of
certain new aircraft and related spare engines.

Our debt agreements contain customary terms and conditions as well as various
affirmative, negative and financial covenants that, among other things, restrict
the ability of the Company and its subsidiaries to incur additional indebtedness
and pay dividends or repurchase stock. As of December 31, 2021, UAL and United
were in compliance with their respective debt covenants.

As of December 31, 2021, a substantial portion of the Company's assets, principally aircraft and certain related assets, its loyalty program, route authorities and airport slots, was pledged under various loan and other agreements.

See Note 10 to the financial statements included in Part II, Item 8 of this report for additional information on aircraft financing and other debt instruments.

The following table summarizes our cash flow for the years ended December 31 (in millions):


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                                                               2021              2020              2019
Total cash provided by (used in):
Operating activities                                        $  2,067          $ (4,133)         $  6,909
Investing activities                                          (1,672)               50            (4,560)
Financing activities                                           6,396            12,957            (1,280)

Net increase in cash, cash equivalents and restricted cash

$  6,791

$ 8,874 $ 1,069

See the Statements of Consolidated Cash Flows include in Part II, Item 8 of this report for additional information.



Operating Activities. Cash flows provided by operating activities for 2021 were
higher than 2020 primarily due to improvements in the demand for passenger
travel as well as total government grant funding provided under the PSP2 and
PSP3 Agreements, discussed below, partially offset by operating losses as a
result of the COVID-19 pandemic.

In 2021, United entered into two Payroll Support Program Extension Agreements
(collectively, the "PSP2 and PSP3 Agreements") with the U.S. Treasury Department
("Treasury") providing the Company with total funding of approximately $5.8
billion, pursuant to the Payroll Support Program. These funds were used to pay
for the wages, salaries and benefits of United employees, including the payment
of lost wages, salaries and benefits to returning employees who were previously
impacted by involuntary furloughs. Approximately $4.1 billion was provided as a
direct grant and $1.7 billion as indebtedness evidenced by two 10-year senior
unsecured promissory notes (collectively, the "PSP2 and PSP3 Notes"). See Note 2
to the financial statements included in Part II, Item 8 of this report for
additional information on the warrants issued in connection with the PSP2 and
PSP3 Notes and Note 10 to such financial statements for a discussion of the PSP2
and PSP3 Notes.

Investing Activities. Capital expenditures were $2.1 billion and $1.7 billion in 2021 and 2020, respectively, mainly related to advance deposits for future aircraft purchases. Also, maturities and sales of short-term and other investments provided $0.4 billion of liquidity in 2021 as compared to $2.3 billion in 2020.

Financing Activities. Significant financing events in 2021 were as follows:



Debt, Finance Lease and Other Financing Liability Principal Payments. During
2021, the Company made payments for debt, finance leases, and other financing
liabilities of $5.2 billion. The Company:

•repaid in full the $1.4 billion aggregate principal amount outstanding under
the term loan facility included in the Amended and Restated Credit and Guaranty
Agreement, dated as of March 29, 2017 (the "2017 Credit Agreement");

•repaid in full the $1.0 billion aggregate principal amount outstanding under the revolving credit facility included in the 2017 Credit Agreement;



•repaid in full the $520 million aggregate principal amount outstanding under
the Loan and Guarantee Agreement, dated as of September 28, 2020, among United,
UAL, Treasury and the Bank of New York Mellon, as administrative agent, as
amended, which was entered into pursuant to the loan program established
pursuant to the CARES Act; and

•made $1.9 billion of aircraft-related debt principal payments.

Debt Issuances. During 2021, United received and recorded:

•$5.0 billion from the 2021 Term Loan Facility;



•$4.0 billion from two series of notes, consisting of $2.0 billion in aggregate
principal amount of 4.375% senior secured notes due 2026 and $2.0 billion in
aggregate principal amount of 4.625% senior secured notes due 2029;

•$1.7 billion from the PSP2 and PSP3 Notes; and

•$600 million from the enhanced equipment trust certificates ("EETC") pass-through trusts established in February 2021.

See Note 10 to the financial statements included in Part II, Item 8 of this report for additional information.



Share Issuances. During 2021, the Company raised approximately $532 million in
net cash proceeds from the issuance and sale of UAL common stock through "at the
market offerings" under equity distribution agreements entered into in June 2020
and March 2021.

Significant financing events in 2020 were as follows:


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Debt Issuances. During 2020, United received and recorded $16.8 billion from
various credit agreements, including the MileagePlus Financing (as defined in
Part I, Item 1A. Risk Factors, of this report), loans provided under the CARES
Act and EETC pass-through trusts established in September 2019 and October 2020.
In 2020, United had recorded approximately $159 million of debt to finance the
construction of an aircraft maintenance and ground service equipment complex at
Los Angeles International Airport.

Debt and Finance Lease Principal Payments. During 2020, the Company made debt and finance lease principal payments of $4.4 billion.



Share Issuances. During 2020, the Company raised approximately $2.1 billion in
cash proceeds from the issuance and sale of UAL common stock through "at the
market offerings" under an equity distribution agreement entered into in June
2020.

Share Repurchases. In 2020, UAL's Board of Directors terminated the share repurchase program. In 2020, prior to the termination of the program, UAL repurchased approximately 4 million shares of UAL common stock in open market transactions for $0.3 billion.



For additional information regarding these Liquidity and Capital Resource
matters, see Notes 2, 10, 11 and 13 to the financial statements included in Part
II, Item 8 of this report. For information regarding non-cash investing and
financing activities, see the Company's statements of consolidated cash flows.
For a discussion of the Company's sources and uses of cash in 2020 as compared
to 2019, see "Liquidity and Capital Resources" in Part II, Item 7. Management's
Discussion and Analysis of Financial Condition and Results of Operations in the
2020 Annual Report.

Credit Ratings. As of the filing date of this report, UAL and United had the following corporate credit ratings:



                             S&P                                           Moody's       Fitch
UAL                           B+                                             Ba2           B+
United                        B+                                              *            B+

*The credit agency does not issue corporate credit ratings for subsidiary entities.




These credit ratings are below investment grade levels; however, the Company has
been able to secure financing with investment grade credit ratings for certain
EETCs, term loans and secured bond financings. Downgrades from these rating
levels, among other things, could restrict the availability, or increase the
cost, of future financing for the Company as well as affect the fair market
value of existing debt. A rating reflects only the view of a rating agency and
is not a recommendation to buy, sell or hold securities. Ratings can be revised
upward or downward at any time by a rating agency if such rating agency decides
that circumstances warrant such a change.

Other Liquidity Matters



Below is a summary of additional liquidity matters. See the indicated notes to
our consolidated financial statements included in Part II, Item 8 of this report
for additional details related to these and other matters affecting our
liquidity and commitments.

Pension and other postretirement plans    Note 7
Long-term debt and debt covenants         Note 10
Leases and capacity purchase agreements   Note 11
Commitments and contingencies             Note 13


The Company's business is capital intensive, requiring significant amounts of
capital to fund the acquisition of assets, particularly aircraft. In the past,
the Company has funded the acquisition of aircraft with cash, by using EETC
financing, by entering into finance or operating leases, or through other
financings. The Company also often enters into long-term lease commitments with
airports to ensure access to terminal, cargo, maintenance and other required
facilities.

The table below provides a summary of the Company's current and long-term material cash requirements as of December 31, 2021 (in billions):


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                                               2022            2023            2024            2025            2026            After 2026           Total
Long-term debt (a)                           $  3.0          $  2.9

$ 3.9 $ 3.4 $ 5.1 $ 15.6 $ 33.9 Finance leases-principal portion

                0.1             0.1               -               -               -                  0.1             

0.3


Interest on debt and finance leases
(b)                                             1.4             1.3             1.1             0.9             0.7                  1.2              6.6
Operating leases (c)                            0.9             0.8             0.8             0.6             0.6                  4.0              7.7
Leases not yet commenced (d)                      -               -               -               -             0.1                  0.3              0.4
Sale-leasebacks                                 0.9             0.1             0.1             0.1             0.1                  0.5              1.8
Regional CPAs (e)                               2.1             2.1             2.0             1.7             1.5                  4.2             13.6
Postretirement benefit payments (f)             0.1             0.1             0.1             0.1             0.1                  0.4              0.9
Pension funding (g)                               -               -               -               -               -                  1.1              1.1
Capital and other purchases (h)                 5.7             6.9             5.0             4.3             3.3                  8.9             34.1
Total                                        $ 14.2          $ 14.3          $ 13.0          $ 11.1          $ 11.5          $      36.3          $ 100.4

(a)Long-term debt presented in the Company's financial statements is net of $513 million of debt discount, premiums and debt issuance costs which are being amortized over the debt terms. Cash requirements do not include the debt discount, premiums and debt issuance costs.

(b)Future interest payments on variable rate debt were determined using the rates as of December 31, 2021.

(c)Represents future payments under fixed rate lease obligations. See Note 11 to the financial statements included in Part II, Item 8 of this report for information on variable rate and short-term operating leases.



(d)Represents future payments under leases that have not yet commenced and are
not included in the consolidated balance sheet. See Note 11 to the financial
statements included in Part II, Item 8 of this report for information on these
leases.

(e)Represents our estimates of future minimum noncancelable commitments under our CPAs and does not include the portion of the underlying obligations for aircraft and facility rent that is disclosed as part of operating lease obligations. Amounts also exclude a portion of United's finance lease obligations recorded for certain of its CPAs. See Note 11 to the financial statements included in Part II, Item 8 of this report for the significant assumptions used to estimate the payments.

(f)Amounts represent postretirement benefit payments through 2031. Benefit payments approximate plan contributions as plans are substantially unfunded.



(g)Represents an estimate of the minimum funding requirements as determined by
government regulations for United's U.S. pension plans. Amounts are subject to
change based on numerous assumptions, including the performance of assets in the
plans and bond rates.

(h)Represents contractual commitments for firm order aircraft, spare engines and other capital purchase commitments. See Note 13 to the financial statements included in Part II, Item 8 of this report for a discussion of our purchase commitments.

In addition to the material cash requirements discussed above, the Company has made certain guarantees that could have a material future effect on the Company's cash requirements:



Letters of Credit and Surety Bonds. As of December 31, 2021, United had
approximately $438 million of letters of credit and surety bonds securing
various obligations with expiration dates through 2031. Certain of these amounts
are cash collateralized and reported within Restricted cash on our statement of
financial position. See Note 13 to the financial statements included in Part II,
Item 8 of this report for more information related to these letters of credit
and surety bonds.

Guarantee of Debt of Others. As of December 31, 2021, United is the guarantor of
$106 million of aircraft mortgage debt issued by one of United's regional
carriers. The aircraft mortgage debt is subject to increased cost provisions and
the Company would potentially be responsible for those costs under the
guarantees. The increased cost provisions in the $106 million of aircraft
mortgage debt are similar to those in certain of the Company's debt agreements.
See discussion under Increased Cost Provisions, below, for additional
information on increased cost provisions related to the Company's debt.

Fuel Consortia. United participates in numerous fuel consortia with other air
carriers at major airports to reduce the costs of fuel distribution and storage.
Interline agreements govern the rights and responsibilities of the consortia
members and provide for the allocation of the overall costs to operate the
consortia based on usage. The consortia (and in limited cases, the participating
carriers) have entered into long-term agreements to lease certain airport fuel
storage and distribution facilities that are typically financed through
tax-exempt bonds, either special facilities lease revenue bonds or general
airport revenue bonds, issued by various local municipalities. In general, each
consortium lease agreement requires the consortium to make lease payments in
amounts sufficient to pay the maturing principal and interest payments on the
bonds. As of December 31, 2021, approximately $1.8 billion principal amount of
such bonds were secured by significant fuel facility leases in which United
participates, as to which United and each of the signatory airlines has provided
indirect guarantees of the debt. As of December 31, 2021, the Company's
contingent exposure was approximately $343 million principal amount of such
bonds based on its recent consortia participation. The Company's contingent
exposure could increase if the participation of other air carriers decreases.
The guarantees will expire when the tax-exempt bonds are paid in full, which
ranges from 2022 to 2056. The Company concluded it was not necessary to record a
liability for these indirect guarantees.

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Increased Cost Provisions. In United's financing transactions that include loans
in which United is the borrower, United typically agrees to reimburse lenders
for any reduced returns with respect to the loans due to any change in capital
requirements and, in the case of loans with respect to which the interest rate
is based on LIBOR, for certain other increased costs that the lenders incur in
carrying these loans as a result of any change in law, subject, in most cases,
to obligations of the lenders to take certain limited steps to mitigate the
requirement for, or the amount of, such increased costs. At December 31, 2021,
the Company had $13.2 billion of floating rate debt with remaining terms of up
to 11 years that are subject to these increased cost provisions. In several
financing transactions involving loans or leases from non-U.S. entities, with
remaining terms of up to 11 years and an aggregate balance of $10.1 billion, the
Company bears the risk of any change in tax laws that would subject loan or
lease payments thereunder to non-U.S. entities to withholding taxes, subject to
customary exclusions.

Critical Accounting Policies

Critical accounting policies are defined as those that are affected by
significant judgments and uncertainties which potentially could result in
materially different accounting under different assumptions and conditions. The
Company has prepared the financial statements in conformity with GAAP, which
requires management to make estimates and assumptions that affect the reported
amounts in the financial statements. Actual results could differ from those
estimates under different assumptions or conditions. The Company has identified
the following critical accounting policies that impact the preparation of the
financial statements.

Revenue Recognition. Passenger revenue is recognized when transportation is
provided. Passenger tickets and related ancillary services sold by the Company
for flights are purchased primarily via credit card transactions, with payments
collected by the Company in advance of the performance of related services. The
Company initially records ticket sales in its Advance ticket sales liability,
deferring revenue recognition until the travel occurs. For travel that has more
than one flight segment, the Company deems each segment as a separate
performance obligation and recognizes revenue for each segment as travel occurs.
Tickets sold by other airlines where the Company provides the transportation are
recognized as passenger revenue at the estimated value to be billed to the other
airline when travel is provided. Differences between amounts billed and the
actual amounts may be rejected and rebilled or written off if the amount
recorded was different from the original estimate. When necessary, the Company
records a reserve against its billings and payables with other airlines based on
historical experience.

The Company sells certain tickets with connecting flights with one or more
segments operated by its other airline partners. For segments operated by its
other airline partners, the Company has determined that it is acting as an agent
on behalf of the other airlines as they are responsible for their portion of the
contract (i.e. transportation of the passenger). The Company, as the agent,
recognizes revenue within Other operating revenue at the time of the travel for
the net amount representing commission to be retained by the Company for any
segments flown by other airlines.

Advance ticket sales represent the Company's liability to provide air
transportation in the future. All tickets sold at any given point of time have
travel dates extending up to 12 months. The Company defers amounts related to
future travel in its Advance ticket sales liability account. The Company's
Advance ticket sales liability also includes credits issued to customers on
electronic travel certificates ("ETCs") and future flight credits ("FFCs"),
primarily for ticket cancellations, which can be applied towards a purchase of a
new ticket. ETCs are valid up to two years from the date of issuance; however,
all ETCs due to expire prior to December 31, 2022 have been extended until
December 31, 2022. FFCs are valid for 12 months from the original ticket date;
however, all FFCs issued on or before December 31, 2021 have been extended to be
valid until December 31, 2022. As of December 31, 2021, the Company's Advance
ticket sales liability included $3.2 billion related to ETCs and FFCs.

The Company estimates the value of Advance ticket sales that will expire unused
("breakage") and recognizes revenue at the scheduled flight date. To determine
breakage, the Company uses its historical experience with expired tickets and
other facts, such as recent aging trends, program changes and modifications that
could affect the ultimate expiration patterns of tickets. Given the uncertainty
of travel demand caused by COVID-19, a significant portion of the ETCs and FFCs
may expire unused in future periods and get recognized as revenue from breakage.
The Company will update its breakage estimates as future information is
received. Changes in estimates of breakage are recognized prospectively in
proportion to the remaining usage of the related tickets.

Frequent Flyer Accounting. United's MileagePlus loyalty program builds customer
loyalty by offering awards, benefits and services to program participants.
Members in this program earn miles for travel on United, United Express, Star
Alliance members and certain other airlines that participate in the program.
Members can also earn miles by purchasing goods and services from our network
of non-airline partners. We have contracts to sell miles to these partners with
the terms extending from one to eight years. These partners include domestic and
international credit card issuers, retail merchants, hotels, car rental
companies and our participating airline partners. Miles can be redeemed for free
(other than taxes and government-imposed fees), discounted or upgraded air
travel and non-travel awards.

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Co-Brand Agreement. United has a contract (the "Co-Brand Agreement") to sell
MileagePlus miles to its co-branded credit card partner JPMorgan Chase Bank USA,
N.A. ("Chase"). Chase awards miles to MileagePlus members based on their credit
card activity. United identified the following significant separately
identifiable performance obligations in the Co-Brand Agreement:

•MileagePlus miles awarded - United has a performance obligation to provide
MileagePlus cardholders with miles to be used for air travel and non-travel
award redemptions. The Company records Passenger revenue related to the travel
awards when the transportation is provided and records Other revenue related to
the non-travel awards when the goods or services are delivered. The Company
records the cost associated with non-travel awards in Other operating revenue,
as an agent.

•Marketing - United has a performance obligation to provide Chase access to United's customer list and the use of United's brand. Marketing revenue is recorded to Other operating revenue as miles are delivered to Chase.



•Advertising - United has a performance obligation to provide advertising in
support of the MileagePlus card in various customer contact points such as
United's website, email promotions, direct mail campaigns, airport advertising
and in-flight advertising. Advertising revenue is recorded to Other operating
revenue as miles are delivered to Chase.

•Other travel-related benefits - United's performance obligations are comprised
of various items such as waived bag fees, seat upgrades and lounge passes.
Lounge passes are recorded to Other operating revenue as customers use the
lounge passes. Bag fees and seat upgrades are recorded to Passenger revenue at
the time of the associated travel.

We account for all the payments received under the Co-Brand Agreement by
allocating them to the separately identifiable performance obligations. The fair
value of the separately identifiable performance obligations is determined using
management's estimated selling price of each component. The objective of using
the estimated selling price based methodology is to determine the price at which
we would transact a sale if the product or service were sold on a stand-alone
basis. Accordingly, we determine our best estimate of selling price by
considering multiple inputs and methods including, but not limited to,
discounted cash flows, brand value, volume discounts, published selling prices,
number of miles awarded and number of miles redeemed. The Company estimated the
selling prices and volumes over the term of the Co-Brand Agreement in order to
determine the allocation of proceeds to each of the components to be delivered.
We also evaluate volumes on an annual basis, which may result in a change in the
allocation of the estimated consideration from the Co-Brand Agreement on a
prospective basis.

Indefinite-lived intangible assets. The Company has indefinite-lived intangible
assets, including goodwill. Goodwill and indefinite-lived intangible assets are
not amortized but are reviewed for impairment on an annual basis as of
October 1, or on an interim basis whenever a triggering event occurs. An
impairment occurs when the fair value of an intangible asset is less than its
carrying value. The Company determines the fair value using a variation of the
income approach known as the excess earnings method, which discounts an asset's
projected future net cash flows to determine the current fair value. Assumptions
used in the discounted cash flow methodology include a discount rate, which is
based upon the Company's current weighted average cost of capital plus an
asset-specific risk factor, and a projection of sales, expenses, gross margin,
tax rates and contributory asset charges for several future years and a terminal
growth rate. The assumptions used for future projections are determined based
upon the Company's asset-specific forecasts along with the Company's strategic
plan. These assumptions are inherently uncertain as they relate to future events
and circumstances. Actual results will be influenced by the competitive
environment, fuel costs and other expenses, and potentially other unforeseen
events or circumstances that could have a material impact on future results. In
light of the ongoing impact of the COVID-19 pandemic on both the U.S. and global
economies, the significant, sustained impact on the demand for travel and
government policies that restrict air travel, the exact timing of a complete
recovery from the COVID-19 pandemic, and the speed at which such recovery could
occur, continues to remain uncertain. We recorded impairment charges of
$130 million related to our China route indefinite-lived intangible assets
during 2020 as a result of the impact of COVID-19. Adverse changes to our
forecasted results caused by COVID-19 or the other factors discussed above could
result in additional impairment charges in the future.

See Notes 1 and 14 to the financial statements included in Part II, Item 8 of this report for additional information.



Tax valuation allowance. A tax valuation allowance is recognized if it is more
likely than not that some portion or all of the deferred tax assets will not be
realized. The Company's management assesses available positive and negative
evidence regarding the Company's ability to realize its deferred tax assets and
records a valuation allowance when it is more likely than not that deferred tax
assets will not be realized. In order to form a conclusion, management considers
positive evidence in the form of taxable income in prior carryback years,
reversing temporary differences, tax planning strategies and projections of
future taxable income during the periods in which those temporary differences
become deductible, as well as negative evidence such as historical losses.
Although the Company incurred losses in 2021 and 2020, management determined
that these results were not indicative of future results due to the impact of
the COVID-19 pandemic on its operations. The Company concluded that the positive
evidence outweighs the negative evidence, primarily driven by approval and
distribution of COVID-19 vaccines as well as increased confidence with the
timing of the recovery. The Company has $7.5 billion of deferred tax assets,

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of which $2.1 billion (tax effected) are attributable to federal net operating
losses ("NOLs") at December 31, 2021. The majority of the NOLs do not expire and
the Company expects to realize the benefits of the NOLs through the reversal of
certain existing deferred tax liabilities of $6.2 billion and the remaining $1.3
billion (the income tax equivalent to approximately two years of average
pre-COVID-19 pre-tax income) through projected future taxable income.
Assumptions about our future taxable income are consistent with the plans and
estimates used to manage our business. Therefore, we have not recorded a
valuation allowance on our deferred tax assets other than the capital loss
carryforwards and certain state attributes that have short expiration periods.
While the Company expects to generate sufficient future income to fully utilize
its deferred tax assets (including NOLs), the Company may have to record a
valuation allowance, which could be material, against deferred tax assets if
negative evidence such as prolonged losses or reduced forecasted income outweigh
positive evidence.

Recording a valuation allowance against our NOLs would not impact our ability to
use them to offset cash taxes payable. However, our ability to use NOLs may be
significantly limited due to various circumstances, as discussed in more detail
in Part I, Item 1A. Risk Factors-"The Company's ability to use its net operating
loss carryforwards and certain other tax attributes to offset future taxable
income for U.S. federal income tax purposes may be significantly limited due to
various circumstances, including certain possible future transactions involving
the sale or issuance of UAL common stock, or if taxable income does not reach
sufficient levels."

As of December 31, 2021, the Company has recorded $183 million of valuation
allowance against its capital loss deferred tax assets. Capital losses have a
limited carryforward period of five years, and they can be utilized only to the
extent of capital gains. The Company does not anticipate generating sufficient
capital gains to utilize the losses before they expire, therefore, a valuation
allowance is necessary as of December 31, 2021. Additionally, the Company
recorded a valuation allowance of $27 million on certain state deferred tax
assets primarily due to state NOLs that have short expiration periods.

Supplemental Information



The Company evaluates its financial performance utilizing various GAAP and
non-GAAP financial measures, including CASM-ex. The Company has provided
CASM-ex, a non-GAAP financial measure, which is not calculated or presented in
accordance with GAAP, as supplemental information and in addition to the
financial measures that are calculated and presented in accordance with GAAP.
Management believes that adjusting for special charges (credits) is useful to
investors because special charges (credits) are not indicative of UAL's ongoing
performance. Management also believes that excluding third-party business
expenses, such as maintenance and ground handling for third parties, provides
more meaningful disclosure because these expenses are not directly related to
UAL's core business. Management also believes that excluding fuel costs is
useful to investors because it provides an additional measure of management's
performance excluding the effects of a significant cost item over which
management has limited influence. Management also believes that excluding profit
sharing allows investors to better understand and analyze UAL's operating cost
performance and provides a more meaningful comparison of our core operating
costs to the airline industry.

Because this non-GAAP financial measure is not calculated in accordance with
GAAP, it should not be considered superior to, and is not intended to be
considered in isolation or as a substitute for, the related GAAP financial
measure and may not be the same as or comparable to any similarly titled measure
presented by other companies due to possible differences in method and in the
items being adjusted. We encourage investors to review our financial statements
and publicly-filed reports in their entirety and not to rely on any single
financial measure.

The Company is not providing a target for CASM or a reconciliation for CASM-ex
projections to CASM, the most directly comparable GAAP measure, because the
Company is unable to predict certain items contained in the GAAP measure without
unreasonable efforts and it does not provide a reconciliation of forward-looking
measures where it believes such a reconciliation would imply a degree of
precision and certainty that could be confusing to investors and is unable to
reasonably predict certain items contained in the GAAP measure without
unreasonable efforts. This is due to the inherent difficulty of forecasting the
timing or amount of various items that have not yet occurred and are out of the
Company's control or cannot be reasonably predicted. For the same reasons, the
Company is unable to address the probable significance of the unavailable
information. Forward-looking measures provided without the most directly
comparable GAAP financial measures may vary materially from the corresponding
GAAP financial measures. See "Cautionary Statement Regarding Forward-Looking
Statements" below. Below is a reconciliation of the non-GAAP financial measure
(CASM-ex) to the most directly comparable GAAP financial measure (CASM) for the
year ended December 31, 2019 (in cents):

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                                                2019
CASM (GAAP)                                      13.67
Special charges (credits)                         0.09
Third-party business expenses                     0.06
Fuel expense                                      3.14
Profit sharing                                    0.17
CASM-ex (Non-GAAP)                               10.21

Cautionary Statement Regarding Forward-Looking Statements



This report contains certain "forward-looking statements," within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, including in Part II, Item 7.
Management's Discussion and Analysis of Financial Condition and Results of
Operations and elsewhere, relating to, among other things, the potential impacts
of the COVID-19 pandemic and steps the Company plans to take in response thereto
and goals, plans and projections regarding the Company's financial position,
results of operations, market position, capacity, fleet, product development,
ESG targets and business strategy. Such forward-looking statements are based on
historical performance and current expectations, estimates, forecasts and
projections about the Company's future financial results, goals, plans and
objectives and involve inherent risks, assumptions and uncertainties, known or
unknown, including internal or external factors that could delay, divert or
change any of them, that are difficult to predict, may be beyond the Company's
control and could cause the Company's future financial results, goals, plans and
objectives to differ materially from those expressed in, or implied by, the
statements. Words such as "should," "could," "would," "will," "may," "expects,"
"plans," "intends," "anticipates," "indicates," "remains," "believes,"
"estimates," "projects," "forecast," "guidance," "outlook," "goals", "targets"
and other words and terms of similar meaning and expression are intended to
identify forward-looking statements, although not all forward-looking statements
contain such terms. All statements, other than those that relate solely to
historical facts, are forward-looking statements.

Additionally, forward-looking statements include conditional statements and
statements that identify uncertainties or trends, discuss the possible future
effects of known trends or uncertainties, or that indicate that the future
effects of known trends or uncertainties cannot be predicted, guaranteed or
assured. All forward-looking statements in this report are based upon
information available to us on the date of this report. We undertake no
obligation to publicly update or revise any forward-looking statement, whether
as a result of new information, future events, changed circumstances or
otherwise, except as required by applicable law or regulation.

Our actual results could differ materially from these forward-looking statements
due to numerous factors including, without limitation, the following: the
adverse impacts of the ongoing COVID-19 global pandemic on our business,
operating results, financial condition and liquidity; execution risks associated
with our strategic operating plan; changes in our network strategy or other
factors outside our control resulting in less economic aircraft orders, costs
related to modification or termination of aircraft orders or entry into less
favorable aircraft orders, as well as any inability to accept or integrate new
aircraft into our fleet as planned; any failure to effectively manage, and
receive anticipated benefits and returns from, acquisitions, divestitures,
investments, joint ventures and other portfolio actions; adverse publicity, harm
to our brand, reduced travel demand, potential tort liability and voluntary or
mandatory operational restrictions as a result of an accident, catastrophe or
incident involving us, our regional carriers, our codeshare partners or another
airline; the highly competitive nature of the global airline industry and
susceptibility of the industry to price discounting and changes in capacity,
including as a result of alliances, joint business arrangements or other
consolidations; our reliance on a limited number of suppliers to source a
majority of our aircraft and certain parts, and the impact of any failure to
obtain timely deliveries, additional equipment or support from any of these
suppliers; disruptions to our regional network and United Express flights
provided by third-party regional carriers; unfavorable economic and political
conditions in the United States and globally; reliance on third-party service
providers and the impact of any significant failure of these parties to perform
as expected, or interruptions in our relationships with these providers or their
provision of services; extended interruptions or disruptions in service at major
airports where we operate and space, facility and infrastructure constrains at
our hubs or other airports; geopolitical conflict, terrorist attacks or security
events; any damage to our reputation or brand image; our reliance on technology
and automated systems to operate our business and the impact of any significant
failure or disruption of, or failure to effectively integrate and implement, the
technology or systems; increasing privacy and data security obligations or a
significant data breach; increased use of social media platforms by us, our
employees and others; the impacts of union disputes, employee strikes or
slowdowns, and other labor-related disruptions on our operations; any failure to
attract, train or retain skilled personnel, including our senior management team
or other key employees; the monetary and operational costs of compliance with
extensive government regulation of the airline industry; current or future
litigation and regulatory actions, or failure to comply with the terms of any
settlement, order or arrangement relating to these

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actions; costs, liabilities and risks associated with environmental regulation
and climate change, including our climate goals; high and/or volatile fuel
prices or significant disruptions in the supply of aircraft fuel; the impacts of
our significant amount of financial leverage from fixed obligations, the
possibility we may seek material amounts of additional financial liquidity in
the short-term, and the impacts of insufficient liquidity on our financial
condition and business; failure to comply with financial and other covenants
governing our debt, including our MileagePlus® financing agreements; the impacts
of the proposed phase out of the London interbank offer rate; limitations on our
ability to use our net operating loss carryforwards and certain other tax
attributes to offset future taxable income for U.S. federal income tax purposes;
our failure to realize the full value of our intangible assets or our long-lived
assets, causing us to record impairments; fluctuations in the price of our
common stock; the impacts of seasonality and other factors associated with the
airline industry; increases in insurance costs or inadequate insurance coverage
and other risks and uncertainties set forth under Part I, Item 1A. Risk Factors,
of this report, as well as other risks and uncertainties set forth from time to
time in the reports we file with the SEC.

The foregoing list sets forth many, but not all, of the factors that could
impact our ability to achieve results described in any forward-looking
statements. Investors should understand that it is not possible to predict or
identify all such factors and should not consider this list to be a complete
statement of all potential risks and uncertainties. In addition, certain
forward-looking outlook provided in this report relies on assumptions about the
duration and severity of the COVID-19 pandemic, the timing of the return to a
more stable business environment, the volatility of aircraft fuel prices,
customer behavior changes and return in demand for air travel, among other
things (together, the "Recovery Process"). If the actual Recovery Process
differs materially from our assumptions, the impact of the COVID-19 pandemic on
our business could be worse than expected, and our actual results may be
negatively impacted and may vary materially from our expectations and
projections. It is routine for our internal projections and expectations to
change as the year or each quarter in the year progresses, and therefore it
should be clearly understood that the internal projections, beliefs and
assumptions upon which we base our expectations may change. For instance, we
regularly monitor future demand and booking trends and adjust capacity, as
needed. As such, our actual flown capacity may differ materially from currently
published flight schedules or current estimations.

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