The cash is there! This is the contract we'll live under for 10 years. The company knows how healthy they are. They can afford $1B retro. MECs will vote yes, pilots vote no. THAT's when leverage comes into play.

TEXT-Fitch affirms United Continental Holdings ratings | Reuters

As of June 30, 2012, UAL's total liquidity was $8.2 billion including a new $500 million revolving credit facility (issued Dec 2011). At 22% of revenues, UAL's liquidity is currently one of the strongest amongst its peers, but is expected to decline by year-end 2012, as the company continues to pay down debt through the integration period. To that end, UAL has about $7.2 billion in scheduled debt and capital leases over the next four years, including $4 billion of non-aircraft debt which the company intends to pay down as they come due. On the other hand, Fitch expects UAL to fund its sizeable orderbook in the EETC market over the next few years. Fitch expects UAL to stay on track with its debt reduction plans, notwithstanding a severe fuel shock or collapse in air travel demand that is not accompanied with further capacity cuts. Over time, UAL's capital structure will likely mirror legacy Continental where the majority of secured debt will be comprised of aircraft financing. Importantly, as the company pays down its upcoming maturities, UAL is expected to shore up a sizeable pool of unencumbered assets. By year-end 2012, the unencumbered pool is estimated to be about $3 billion but is expected to approach levels similar to Southwest (the only investment grade rated carrier in the U.S.) in just two years. This is an important consideration for UAL's ratings that could significantly boost the carrier's credit ratings over time.