EX-99.1 2 f8k100104exh991.htm EXHIBIT 99.1 News Release

EXHIBIT 99.1

News Release

Contact: Corporate Communications

Houston: 713.324.5080

Email: corpcomm@coair.com

News archive: continental.com/news/ Address: P.O. Box 4607, Houston, TX 77210-4607

 

CONTINENTAL AIRLINES REPORTS SEPTEMBER 2004

OPERATIONAL PERFORMANCE

HOUSTON, Oct. 1, 2004 - Continental Airlines (NYSE: CAL) today reported a September consolidated (mainline plus regional) load factor of 74.5 percent, 2.8 points above last year's September consolidated load factor. The carrier reported a mainline load factor of 75.2 percent, 2.9 points above last year's September mainline load factor and a domestic mainline load factor of 74.3 percent, 3.0 points above September 2003. All three were operational records for September. In addition, the airline had an international mainline September load factor of 76.4 percent, 2.6 points above September 2003.

During the month, Continental recorded a U.S. Department of Transportation on-time arrival rate of 85.9 percent and a mainline completion factor of 98.4 percent.

The three major hurricanes in September - Frances, Ivan, and Jeanne - had a minimal effect on Continental Airlines' hub operations and together are estimated to have cost the carrier approximately $6 million in revenue.

In September 2004, Continental flew 5.6 billion consolidated revenue passenger miles (RPMs) and 7.6 billion consolidated available seat miles (ASMs), resulting in a traffic increase of 11.8 percent and a capacity increase of 7.7 percent as compared to September 2003. In September 2004, Continental flew 5.1 billion mainline RPMs and 6.7 billion mainline ASMs, resulting in a traffic increase of 11.0 percent and a capacity increase of 6.8 percent as compared to September 2003. Domestic mainline traffic was 2.8 billion RPMs in September 2004, up 5.6 percent from September 2003, and domestic mainline capacity was 3.8 billion ASMs, up 1.3 percent from September 2003.

For the month of September 2004, both consolidated and mainline passenger RASM are estimated to have decreased between 1.0 and 2.0 percent compared to September 2003. For August 2004, consolidated RASM decreased 0.5 percent compared to August 2003 and mainline RASM decreased 1.1 percent.

Continental ended the quarter with unrestricted cash and short-term investments of approximately $1.54 billion.

Continental's regional operations (Continental Express) set a record September load factor of 69.2 percent, 2.3 points above last year's September load factor. Regional RPMs were 577.4 million and regional ASMs were 834.9 million in September 2004, resulting in a traffic increase of 19.5 percent and a capacity increase of 15.5 percent versus September 2003.

Continental Airlines is the world's sixth-largest airline with more than 3,000 daily departures throughout the Americas, Europe and Asia. Continental serves 151 domestic and 120 international destinations - more than any other airline in the world - and nearly 200 additional points are served via SkyTeam alliance airlines. With 42,000 employees, the airline has hubs serving New York, Houston, Cleveland and Guam, and carries approximately 51 million passengers per year. In 2004, Continental has earned awards and critical acclaim for both its operation and its corporate culture. FORTUNE ranks Continental one of the 100 Best Companies to Work For in America, an honor it has earned for six consecutive years, and also ranks Continental as the top airline in its Most Admired Global Companies in 2004. The carrier won major awards at the 2004 OAG Airline of the Year Awards including "Airline of the Year," "Best Airline Based in North America" and "Best Executive/Business Class." For more company information, visit continental.com.

 

This press release contains forward-looking statements that are not limited to historical facts, but reflect the company's current beliefs, expectations or intentions regarding future events. All forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. For examples of such risks and uncertainties, please see the risk factors set forth in the company's 2003 10-K and its other securities filings, which identify important matters such as terrorist attacks, domestic and international economic conditions, the significant cost of aircraft fuel, labor costs, competition, regulatory matters and industry conditions, including the demand for air travel, the airline pricing environment and industry capacity decisions. The company undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this press release.

PRELIMINARY TRAFFIC RESULTS

SEPTEMBER

  

2004   

2003   

Change   

REVENUE PASSENGER MILES (000)

    
 

Domestic

2,815,357

2,666,752

5.6  Percent
         
 

International

2,244,905

1,890,301

18.8  Percent
 

Transatlantic

1,246,741

985,373

26.5  Percent 
 

Latin America

513,611

450,848

13.9  Percent 
 

Pacific

484,553

454,081

6.7  Percent 
         
 

Mainline

5,060,262

4,557,053

11.0  Percent
         
 

Regional

577,405

483,330

19.5  Percent
         
 

Consolidated

5,637,667

5,040,383

11.8  Percent
         

AVAILABLE SEAT MILES (000)

    
 

Domestic

3,791,439

3,741,969

1.3  Percent
         
 

International

2,938,051

2,561,590

14.7  Percent
 

Transatlantic

1,566,876

1,258,044

24.5  Percent 
 

Latin America

764,687

690,084

10.8  Percent 
 

Pacific

606,488

613,462

(1.1) Percent 
         
 

Mainline

6,729,489

6,303,559

6.8  Percent
         
 

Regional

834,895

722,903

15.5  Percent
         
 

Consolidated

7,564,385

7,026,462

7.7  Percent
         

PASSENGER LOAD FACTOR

    
 

Domestic

74.3 Percent

71.3 Percent

3.0  Points
         
 

International

76.4 Percent

73.8 Percent

2.6  Points
 

Transatlantic

79.6 Percent 

78.3 Percent 

1.3  Points 
 

Latin America

67.2 Percent 

65.3 Percent 

1.9  Points 
 

Pacific

79.9 Percent 

74.0 Percent 

5.9  Points 
         
 

Mainline

75.2 Percent

72.3 Percent

2.9  Points
         
 

Regional

69.2 Percent

66.9 Percent

2.3  Points
         
 

Consolidated

74.5 Percent

71.7 Percent

2.8  Points
         

ONBOARD PASSENGERS

    
 

Mainline

3,113,567

2,979,830

4.5  Points
         
 

Regional

1,078,915

949,247

13.7  Points
         
 

Consolidated

4,192,482

3,929,077

6.7  Points
         

CARGO REVENUE TON MILES (000)

    
 

Total

84,764

72,436

17.0  Percent

 

YEAR-TO-DATE

  

2004   

2003   

Change   

REVENUE PASSENGER MILES (000)

    
 

Domestic

28,466,078

27,172,108

4.8  Percent
         
 

International

21,000,519

17,211,562

22.0  Percent
 

Transatlantic

10,016,085

7,900,730

26.8  Percent 
 

Latin America

6,607,228

5,899,670

12.0  Percent 
 

Pacific

4,377,206

3,411,162

28.3  Percent 
         
 

Mainline

49,466,597

44,383,670

11.5  Percent
         
 

Regional

5,447,334

4,139,261

31.6  Percent
         
 

Consolidated

54,913,931

48,522,931

13.2  Percent
         

AVAILABLE SEAT MILES (000)

    
 

Domestic

36,836,693

35,465,800

3.9  Percent
         
 

International

26,970,795

23,330,993

15.6  Percent
 

Transatlantic

12,470,798

10,363,126

20.3  Percent 
 

Latin America

8,903,662

7,936,220

12.2  Percent 
 

Pacific

5,596,335

5,031,647

11.2  Percent 
         
 

Mainline

63,807,488

58,796,793

8.5  Percent
         
 

Regional

7,699,506

6,108,648

26.0  Percent
         
 

Consolidated

71,506,994

64,905,441

10.2  Percent
         

PASSENGER LOAD FACTOR

    
 

Domestic

77.3 Percent

76.6 Percent

0.7  Points
         
 

International

77.9 Percent

73.8 Percent

4.1  Points
 

Transatlantic

80.3 Percent 

76.2 Percent 

4.1  Points 
 

Latin America

74.2 Percent 

74.3 Percent 

(0.1) Points 
 

Pacific

78.2 Percent 

67.8 Percent 

10.4  Points 
         
 

Mainline

77.5 Percent

75.5 Percent

2.0  Points
         
 

Regional

70.7 Percent

67.8 Percent

2.9  Points
         
 

Consolidated

76.8 Percent

74.8 Percent

2.0  Points
         

ONBOARD PASSENGERS

    
 

Mainline

32,119,454

30,560,450

5.1  Points
         
 

Regional

10,110,460

8,367,917

20.8  Points
         
 

Consolidated

42,229,914

38,928,367

8.5  Points
         

CARGO REVENUE TON MILES (000)

    
 

Total

749,557

679,544

10.3  Percent

 

 

PRELIMINARY OPERATIONAL AND FINANCIAL RESULTS

SEPTEMBER

  

2004 

2003 

Change  

On-Time Performance1

85.9%

78.1%

7.8  Points

Completion Factor2

98.4%

99.1%

(0.7) Points
         

YEAR-TO-DATE

  

2004 

2003 

Change  

On-Time Performance1

78.4%

82.3%

(3.9) Points

Completion Factor2

99.5%

99.4%

0.1  Points
         

August 2004 consolidated breakeven load factor3,4

80.4  Percent

September 2004 estimated year-over-year consolidated

  RASM change


(2.0)-(1.0) Percent

September 2004 estimated year-over-year mainline RASM

  change

(2.0)-(1.0) Percent

September 2004 estimated average price per gallon of fuel,

  including fuel taxes


1.26 Dollars

September 2004 estimated consolidated breakeven load factor3,5

88 Percent

September 2004 actual consolidated load factor6

74.5 Percent

October 2004 estimated consolidated breakeven load factor3

87 Percent
 

YEAR-OVER-YEAR CONSOLIDATED RASM

    
 

2003 vs. 2002

2003 vs. 2001

  

August

5.5 Percent

3.0 Percent

  

September

7.2 Percent

21.6 Percent

  

October

6.7 Percent

17.7 Percent

  

November

7.0 Percent

6.3 Percent

  

December

2.3 Percent

14.0 Percent

  
 

2004 vs. 2003

2004 vs. 2002

  

January

1.7 Percent

6.1 Percent

  

February

(1.0) Percent

(0.3) Percent

  

March

6.1 Percent

(4.2) Percent

  

April

3.8 Percent

4.8 Percent

  

May

(2.0) Percent

1.5  Percent

  

June

1.9 Percent

4.1 Percent

  

July

2.9 Percent

9.8 Percent

  

August

(0.5) Percent

5.0 Percent

  

September (estimated)

(2.0)-(1.0) Percent

5.0-6.0 Percent

  
       

 

 

YEAR-OVER-YEAR MAINLINE RASM

    
 

2003 vs. 2002

2003 vs. 2001

  

August

4.4 Percent

1.5 Percent

  

September

5.3 Percent

16.7 Percent

  

October

4.4 Percent

14.1 Percent

  

November

5.5 Percent

3.7 Percent

  

December

1.7 Percent

12.0 Percent

  
 

2004 vs. 2003

2004 vs. 2002

  

January

0.9 Percent

4.5 Percent

  

February

(2.5) Percent

(2.9) Percent

  

March

4.9 Percent

(7.4) Percent

  

April

3.1 Percent

2.1 Percent

  

May

(3.0) Percent

(1.1) Percent

  

June

1.3 Percent

1.6 Percent

  

July

2.8 Percent

7.8 Percent

  

August

(1.1) Percent

3.2 Percent

  

September (estimated)

(2.0)-(1.0) Percent

3.0-4.0 Percent

  

1 Department of Transportation Arrivals within 14 minutes

2 Mainline Mileage Completion Percentage

3 Consolidated load factor (including Continental Airlines and Continental Express) needed to break even on a consolidated net income

basis. Actual consolidated breakeven load factor may vary significantly from estimates depending on actual passenger revenue yields,

fuel price and other factors. Month-to-date consolidated load factor information can be found on Continental's website at

continental.com in the Investor Relations-Financial/Traffic Releases section.

4 Charge related to MD-80 aircraft retirement increased the breakeven load factor by 1.0 percentage point.

5 Income related to net fair market value adjustment of trading securities net of charges related to MD-80 aircraft retirements and other

items reduced the breakeven load factor by 1 percentage point.

6 Includes Continental Airlines and Continental Express.

 

 

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