NOTE 2 - EARNINGS PER SHARE

The table below represents the computation of UAL basic and diluted earnings per share amounts and the number of securities that have been excluded from the computation of diluted earnings per share amounts, because they were antidilutive (in millions, except per share amounts):


	Three Months Ended June 30,					Six Months Ended June 30,
	2011			2010		2011			2010
UAL basic earnings per share:
Net income	$	538		$	273	$	325		$	191
Less: Income allocable to participating securities		(2	)		—		(1	)		—

Earnings available to common stockholders	$	536		$	273	$	324		$	191

Basic weighted average shares outstanding		330			168		329			168

Earnings per share, basic	$	1.63		$	1.62	$	0.98		$	1.14


UAL diluted earnings per share:
Earnings available to common stockholders	$	536		$	273		324		$	191
Effect of UAL 4.5% Senior Limited-Subordination Convertible Notes		11			21		—			—
Effect of Continental 4.5% Convertible Notes		2			—		4			—
Effect of UAL 5% Senior Convertible Notes		—			4		—			—
Effect of Continental 6% Convertible Junior Subordinated Debentures		4			—		—			—
Effect of UAL 6% Senior Convertible Notes		5			5		9			10

Earnings available to common stockholders including the effect of dilutive securities	$	558		$	303	$	337		$	201


UAL diluted shares outstanding:
Basic weighted average shares outstanding		330			168		329			168
Effect of employee stock options		1			2		2			1
Effect of UAL 4.5% Senior Limited-Subordination Convertible Notes		13			22		—			—
Effect of Continental 4.5% Convertible Notes		12			—		12			—
Effect of UAL 5% Senior Convertible Notes		—			3		—			—
Effect of Continental 6% Convertible Junior Subordinated Debentures		4			—		—			—
Effect of UAL 6% Senior Convertible Notes		40			40		40			40

Diluted weighted average shares outstanding		400			235		383			209

Earnings per share, diluted	$	1.39		$	1.29	$	0.88		$	0.96


UAL potentially dilutive shares excluded from diluted per share amounts:
Restricted stock and stock options		7			5		6			6
UAL 4.5% Senior Limited-Subordination Convertible Notes		—			—		18			22
Continental 6% Convertible Junior Subordinated Debentures		—			—		4			—
UAL 5% Senior Convertible Notes (Note 9)		—			—		—			3

UAL's 6% Senior Notes due 2031, with a principal amount of $633 million as of June 30, 2011, are callable at any time at 100% of par value and can be redeemed with either cash or shares of UAL common stock, or a combination thereof, at UAL's option. These notes are not included in the diluted earnings per share calculation as it is UAL's intent to redeem these notes with cash, if UAL were to redeem the notes. During the second quarter of 2011, UAL repurchased at par value approximately $570 million of the $726 million outstanding principal amount of its 4.5% Senior Limited-Subordination Convertible Notes due 2021 with cash after the notes were put to UAL by the noteholders. The dilutive effect of the 4.5% Senior Limited-Subordination Convertible Notes due 2021 was excluded in the diluted earnings per share calculations for the three and six months ended June 30, 2011 from the date notice was given of the Company's intent to pay the notes put to it in cash up to the repurchase date.

The table below represents the computation of Continental Predecessor's basic and diluted earnings per share amounts (in millions, except per share amounts):


	Three Months Ended June 30,		Six Months Ended June 30,
	2010		2010
Continental Predecessor basic earnings per share:
Earnings available to common stockholders	$	233	$	87

Basic weighted average shares outstanding		140		139

Earnings per share, basic	$	1.67	$	0.62


Continental Predecessor diluted earnings per share:
Earnings available to common stockholders	$	233	$	87
Effect of 5% Convertible Notes		4		—
Effect of 6% Convertible Junior Subordinated Debentures		3		—
Effect of 4.5% Convertible Notes		3		5

Earnings available to common stockholders including the effect of dilutive securities	$	243	$	92


Continental Predecessor diluted shares outstanding:
Basic weighted average shares outstanding		140		139
5% Convertible Notes		9		—
6% Convertible Junior Subordinated Debentures		4		—
4.5% Convertible Notes		12		12
Employee stock options		2		2

Diluted weighted average shares outstanding		167		153

Earnings per share, diluted	$	1.46	$	0.60


Continental Predecessor potentially dilutive shares excluded from diluted per share amounts:
5% Convertible Notes		—		9
6% Convertible Junior Subordinated Debentures		—		4
Employee stock options		1		1

Earnings Per Share

NOTE 2 - EARNINGS PER SHARE

The table below represents the computation of UAL basic and diluted earnings per share amounts and the number of securities that have been excluded from the computation of diluted earnings per share amounts, because they were antidilutive (in millions, except per share amounts):


	Three Months Ended June 30,					Six Months Ended June 30,
	2011			2010		2011			2010
UAL basic earnings per share:
Net income	$	538		$	273	$	325		$	191
Less: Income allocable to participating securities		(2	)		—		(1	)		—

Earnings available to common stockholders	$	536		$	273	$	324		$	191

Basic weighted average shares outstanding		330			168		329			168

Earnings per share, basic	$	1.63		$	1.62	$	0.98		$	1.14


UAL diluted earnings per share:
Earnings available to common stockholders	$	536		$	273		324		$	191
Effect of UAL 4.5% Senior Limited-Subordination Convertible Notes		11			21		—			—
Effect of Continental 4.5% Convertible Notes		2			—		4			—
Effect of UAL 5% Senior Convertible Notes		—			4		—			—
Effect of Continental 6% Convertible Junior Subordinated Debentures		4			—		—			—
Effect of UAL 6% Senior Convertible Notes		5			5		9			10

Earnings available to common stockholders including the effect of dilutive securities	$	558		$	303	$	337		$	201


UAL diluted shares outstanding:
Basic weighted average shares outstanding		330			168		329			168
Effect of employee stock options		1			2		2			1
Effect of UAL 4.5% Senior Limited-Subordination Convertible Notes		13			22		—			—
Effect of Continental 4.5% Convertible Notes		12			—		12			—
Effect of UAL 5% Senior Convertible Notes		—			3		—			—
Effect of Continental 6% Convertible Junior Subordinated Debentures		4			—		—			—
Effect of UAL 6% Senior Convertible Notes		40			40		40			40

Diluted weighted average shares outstanding		400			235		383			209

Earnings per share, diluted	$	1.39		$	1.29	$	0.88		$	0.96


UAL potentially dilutive shares excluded from diluted per share amounts:
Restricted stock and stock options		7			5		6			6
UAL 4.5% Senior Limited-Subordination Convertible Notes		—			—		18			22
Continental 6% Convertible Junior Subordinated Debentures		—			—		4			—
UAL 5% Senior Convertible Notes (Note 9)		—			—		—			3

UAL's 6% Senior Notes due 2031, with a principal amount of $633 million as of June 30, 2011, are callable at any time at 100% of par value and can be redeemed with either cash or shares of UAL common stock, or a combination thereof, at UAL's option. These notes are not included in the diluted earnings per share calculation as it is UAL's intent to redeem these notes with cash, if UAL were to redeem the notes. During the second quarter of 2011, UAL repurchased at par value approximately $570 million of the $726 million outstanding principal amount of its 4.5% Senior Limited-Subordination Convertible Notes due 2021 with cash after the notes were put to UAL by the noteholders. The dilutive effect of the 4.5% Senior Limited-Subordination Convertible Notes due 2021 was excluded in the diluted earnings per share calculations for the three and six months ended June 30, 2011 from the date notice was given of the Company's intent to pay the notes put to it in cash up to the repurchase date.

The table below represents the computation of Continental Predecessor's basic and diluted earnings per share amounts (in millions, except per share amounts):


	Three Months Ended June 30,		Six Months Ended June 30,
	2010		2010
Continental Predecessor basic earnings per share:
Earnings available to common stockholders	$	233	$	87

Basic weighted average shares outstanding		140		139

Earnings per share, basic	$	1.67	$	0.62


Continental Predecessor diluted earnings per share:
Earnings available to common stockholders	$	233	$	87
Effect of 5% Convertible Notes		4		—
Effect of 6% Convertible Junior Subordinated Debentures		3		—
Effect of 4.5% Convertible Notes		3		5

Earnings available to common stockholders including the effect of dilutive securities	$	243	$	92


Continental Predecessor diluted shares outstanding:
Basic weighted average shares outstanding		140		139
5% Convertible Notes		9		—
6% Convertible Junior Subordinated Debentures		4		—
4.5% Convertible Notes		12		12
Employee stock options		2		2

Diluted weighted average shares outstanding		167		153

Earnings per share, diluted	$	1.46	$	0.60


Continental Predecessor potentially dilutive shares excluded from diluted per share amounts:
5% Convertible Notes		—		9
6% Convertible Junior Subordinated Debentures		—		4
Employee stock options		1		1

Earnings Per Share

NOTE 2 - EARNINGS PER SHARE

The table below represents the computation of UAL basic and diluted earnings per share amounts and the number of securities that have been excluded from the computation of diluted earnings per share amounts, because they were antidilutive (in millions, except per share amounts):


	Three Months Ended June 30,					Six Months Ended June 30,
	2011			2010		2011			2010
UAL basic earnings per share:
Net income	$	538		$	273	$	325		$	191
Less: Income allocable to participating securities		(2	)		—		(1	)		—

Earnings available to common stockholders	$	536		$	273	$	324		$	191

Basic weighted average shares outstanding		330			168		329			168

Earnings per share, basic	$	1.63		$	1.62	$	0.98		$	1.14


UAL diluted earnings per share:
Earnings available to common stockholders	$	536		$	273		324		$	191
Effect of UAL 4.5% Senior Limited-Subordination Convertible Notes		11			21		—			—
Effect of Continental 4.5% Convertible Notes		2			—		4			—
Effect of UAL 5% Senior Convertible Notes		—			4		—			—
Effect of Continental 6% Convertible Junior Subordinated Debentures		4			—		—			—
Effect of UAL 6% Senior Convertible Notes		5			5		9			10

Earnings available to common stockholders including the effect of dilutive securities	$	558		$	303	$	337		$	201


UAL diluted shares outstanding:
Basic weighted average shares outstanding		330			168		329			168
Effect of employee stock options		1			2		2			1
Effect of UAL 4.5% Senior Limited-Subordination Convertible Notes		13			22		—			—
Effect of Continental 4.5% Convertible Notes		12			—		12			—
Effect of UAL 5% Senior Convertible Notes		—			3		—			—
Effect of Continental 6% Convertible Junior Subordinated Debentures		4			—		—			—
Effect of UAL 6% Senior Convertible Notes		40			40		40			40

Diluted weighted average shares outstanding		400			235		383			209

Earnings per share, diluted	$	1.39		$	1.29	$	0.88		$	0.96


UAL potentially dilutive shares excluded from diluted per share amounts:
Restricted stock and stock options		7			5		6			6
UAL 4.5% Senior Limited-Subordination Convertible Notes		—			—		18			22
Continental 6% Convertible Junior Subordinated Debentures		—			—		4			—
UAL 5% Senior Convertible Notes (Note 9)		—			—		—			3

UAL's 6% Senior Notes due 2031, with a principal amount of $633 million as of June 30, 2011, are callable at any time at 100% of par value and can be redeemed with either cash or shares of UAL common stock, or a combination thereof, at UAL's option. These notes are not included in the diluted earnings per share calculation as it is UAL's intent to redeem these notes with cash, if UAL were to redeem the notes. During the second quarter of 2011, UAL repurchased at par value approximately $570 million of the $726 million outstanding principal amount of its 4.5% Senior Limited-Subordination Convertible Notes due 2021 with cash after the notes were put to UAL by the noteholders. The dilutive effect of the 4.5% Senior Limited-Subordination Convertible Notes due 2021 was excluded in the diluted earnings per share calculations for the three and six months ended June 30, 2011 from the date notice was given of the Company's intent to pay the notes put to it in cash up to the repurchase date.

The table below represents the computation of Continental Predecessor's basic and diluted earnings per share amounts (in millions, except per share amounts):


	Three Months Ended June 30,		Six Months Ended June 30,
	2010		2010
Continental Predecessor basic earnings per share:
Earnings available to common stockholders	$	233	$	87

Basic weighted average shares outstanding		140		139

Earnings per share, basic	$	1.67	$	0.62


Continental Predecessor diluted earnings per share:
Earnings available to common stockholders	$	233	$	87
Effect of 5% Convertible Notes		4		—
Effect of 6% Convertible Junior Subordinated Debentures		3		—
Effect of 4.5% Convertible Notes		3		5

Earnings available to common stockholders including the effect of dilutive securities	$	243	$	92


Continental Predecessor diluted shares outstanding:
Basic weighted average shares outstanding		140		139
5% Convertible Notes		9		—
6% Convertible Junior Subordinated Debentures		4		—
4.5% Convertible Notes		12		12
Employee stock options		2		2

Diluted weighted average shares outstanding		167		153

Earnings per share, diluted	$	1.46	$	0.60


Continental Predecessor potentially dilutive shares excluded from diluted per share amounts:
5% Convertible Notes		—		9
6% Convertible Junior Subordinated Debentures		—		4
Employee stock options		1		1