SECURITIES AND EXCHANGE COMMISSION
                          Washington, DC  20549
                                    
                                    
                                FORM 8-K
                                    
                                    
                             CURRENT REPORT


                 Pursuant to Section 13 or 15(d) of the
                     Securities Exchange Act of 1934


                    Date of Report:  January 29, 1996
                    (Date of earliest event reported)


                          UAL CORPORATION
         (Exact name of registrant as specified in its charter)


            Delaware               1-6033           36-2675207
(State or other jurisdiction     (Commission     (I.R.S. Employer
     of incorporation)           File Number)    Identification No.)


1200 Algonquin Road, Elk Grove Township, Illinois       60007
 (Address of principal executive offices)            (Zip Code)


Registrant's telephone number, including area code  (708) 952-4000


                             Not Applicable
      (Former name or former address, if changed since last report)




ITEM 5.                 OTHER EVENTS.

    UAL Corporation (the "Company") is filing herewith a press
release issued today by the Company as Exhibit 99.1 which is
incorporated herein by reference.


ITEM 7.         FINANCIAL STATEMENTS AND EXHIBITS.


Exhibit No.     Description

    99.1        Press Release

                               SIGNATURES


        Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.



                                UAL CORPORATION



                                By:  /s/ Douglas A. Hacker
                                Name:  Douglas A. Hacker
                                Title:  Senior Vice President -
                                        Finance






Dated:  January 24, 1996




                              EXHIBIT INDEX


Exhibit
Number          Description

 99.1           Press Release

                                                           Exhibit 99.1


                                Corporate Communications Contacts:

                                Connie Huff          (847) 952-5501
                                Tony Molinaro        (847) 952-4971
                                Night/Weekend        (847) 952-4088
          
                                Investor Relations Contact:

                                Mark Reiser          (847) 952-7501


           UAL CORPORATION COMPLETES MORE THAN $2.6 BILLION IN
         CREDIT IMPROVEMENT INITIATIVES SINCE EMPLOYEE OWNERSHIP
                                    
     CHICAGO, Jan 29, 1996 -- UAL Corporation, parent company of United

Airlines, continues in its effort to strengthen its balance sheet and

improve its debt rating with the implementation of more than $2.6 billion

in debt retirement and credit improvement initiatives since employees

became majority owners.

     Cost reduction achievements in the fourth quarter of 1995 included

completion of a program to retire all of its outstanding Japanese yen-

denominated deferred purchase certificates.  UAL Corporation (UAL) also

has terminated operating leases for 39 aircraft related to the deferred

purchase certificates.  These actions reduce the company's previously

disclosed minimum lease payment obligations over the next three years by

a total of $426 million.

     In addition, during the fourth quarter of 1995, the company

repurchased approximately $179 million of additional debt securities and

approximately $96 million of preferred stock.

     During the 18 months from the employee ownership transaction on

July 12, 1994, through year-end 1995, UAL has completed the following

credit improvement initiatives:

   -    $426 million       Termination of operating lease on, and
                           subsequent acquisition of 39 aircraft

   -    $195 million       Prepayment of deferred purchase certificates
                           (principal amount)

   -    $327 million       Repurchase of unsecured debt (principal amount)

   -    $190 million       Repurchase of Series B preferred stock
                           (liquidation preference)

   -    $426 million       Prepayment of aircraft mortgages (principal
                           amount)

   -    $269 million       Repayment of outstanding commercial paper

   -    $777 million       Pension plan finding
         ____________
   -    $2.610 billion     Total

     UAL also is weighing the possibility of redeeming its 6 3/8 percent

convertible subordinated debentures on or after May 1, 1996, as part of

its debt-reduction program.

     The decision to redeem the debentures will depend on financial

markets and other conditions, including the last sale price of its common

stock exceeding $172.20 for 20 trading days within a period of 30

consecutive trading days, including the last trading day.  On January 26,

1996, the last sale price of UAL common stock was $156 5/8.  Should UAL

redeem such debentures prior to May 1, 1997, holders would receive

$1,043.75 in cash for every $1,000 in principal amount of debentures

redeemed, plus accrued and unpaid interest, if any, up to but excluding

the redemption date.

     If UAL issues a notice of redemption, holders may still convert

their debentures through the business day preceding the redemption date.

Upon conversion, holders will receive $541.90 in cash and approximately

3.192 shares of common stock for every $1,000 principal amount of

debentures.  If the redemption date is on or after an interest payment

date and prior to the next interest payment record date, holders who

convert will not be entitled to any interest on the debentures.