EX-99.1 2 f8k100305exh991.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/company/news/ Address: P.O. Box 4607, Houston, TX 77210-4607


CONTINENTAL AIRLINES REPORTS SEPTEMBER 2005

OPERATIONAL PERFORMANCE

HOUSTON, Oct. 3, 2005 - Continental Airlines (NYSE: CAL) today reported a September consolidated (mainline plus regional) load factor of 77.0 percent, 2.5 points above last year's September consolidated load factor. The carrier reported a mainline load factor of 77.3 percent, 2.1 points above last year's September mainline load factor, and a domestic mainline load factor of 79.0 percent, 4.7 points above September 2004. All three were operational records for September. In addition, the airline had an international mainline September load factor of 75.4 percent, 1.0 point below September 2004.

During the month, Continental recorded a U.S. Department of Transportation on-time arrival rate of 79.5 percent and a systemwide mainline completion factor of 96.9 percent, both negatively impacted by Hurricane Rita.

In September 2005, Continental flew 6.2 billion consolidated revenue passenger miles (RPMs) and 8.0 billion consolidated available seat miles (ASMs), resulting in a traffic increase of 9.8 percent and a capacity increase of 6.3 percent as compared to September 2004. In September 2005, Continental flew 5.5 billion mainline RPMs and 7.1 billion mainline ASMs, resulting in a mainline traffic increase of 9.1 percent and a mainline capacity increase of 6.1 percent as compared to September 2004. Domestic mainline traffic was 3.0 billion RPMs in September 2005, up 6.6 percent from September 2004, and domestic mainline capacity was 3.8 billion ASMs, up 0.1 percent from September 2004.

For the month of September 2005, consolidated passenger revenue per available seat mile (RASM) is estimated to have increased between 8.0 and 9.0 percent compared to September 2004, while mainline passenger RASM is estimated to have increased between 7.5 and 8.5 percent compared to September 2004. For August 2005, consolidated passenger RASM increased 5.0 percent compared to August 2004 while mainline passenger RASM increased 4.7 percent from August 2004.

 

During the third quarter, Continental's operations were negatively impacted by Hurricane Rita, and to a lesser extent, Hurricane Katrina, both of which targeted the Gulf Coast.  Houston hub consolidated load factors and passenger RASM for September were negatively affected in the days leading up to and immediately following Hurricane Rita's landfall.  Houston hub consolidated load factors for Sept. 22, 23, 25 and 26 were 66 percent, 39 percent, 55 percent and 65 percent, respectively.  By comparison, prior to the storm, Continental had expected Houston hub consolidated load factors on those days of 82 percent, 82 percent, 88 percent and 79 percent, respectively. Continental canceled all scheduled Houston mainline flights after noon on Friday, Sept. 23 and all Houston mainline flights on Saturday, Sept. 24, while Continental Express extended its Houston flight cancellations from midnight on Sept. 23 through and including Sept. 25. 

In addition, September RASM was also adversely impacted by Continental's decision to assist in the evacuation of Houston by greatly enhancing access to lower fares in the days immediately preceding and following Hurricane Rita.  Continental also waived change fees for travelers who wanted to change their Houston travel plans. Continental estimates that the adverse impact in September on operating results from Hurricane Rita was approximately $25 million. 

Despite the adverse impact from Hurricane Katrina and Hurricane Rita and continued record high jet fuel prices, the company expects to report a modest profit for the third quarter 2005, due to relatively strong performance during the months of July and August.

Continental ended the third quarter with unrestricted cash and short-term investments of approximately $1.93 billion, an amount which falls within the previously indicated guidance of $1.9 to $2.0 billion. 

  Continental's regional operations (Continental Express) had a record September load factor of 74.2 percent, 5.0 points above last year's September load factor. Regional RPMs were 671.4 million and regional ASMs were 904.6 million in September 2005, resulting in a traffic increase of 16.3 percent and a capacity increase of 8.4 percent versus September 2004.

Continental Airlines is the world's sixth-largest airline. Continental, together with Continental Express and Continental Connection, has more than 3,100 daily

departures throughout the Americas, Europe and Asia, serving 150 domestic and 131 international destinations, more than any other carrier in the world. Nearly 400 additional points are served via SkyTeam alliance airlines, which include Aeromexico, Air France/KLM, Alitalia, CSA Czech Airlines, Delta Air Lines, Korean Air and Northwest Airlines.  With 41,000 employees, Continental has hubs serving New York, Houston, Cleveland and Guam, and together with Continental Express, carries approximately 56 million passengers per year. Continental consistently earns awards and critical acclaim for both its operation and its corporate culture.

For the second consecutive year, FORTUNE magazine named Continental the No. 1 Most Admired Global Airline on its 2005 list of Most Admired Global Companies. Continental was also included in the publication's annual "Top 50" list, which ranks all companies, across a wide variety of industries, that appear in the Global Most Admired Companies issue. Continental again won major awards at the 2005 OAG Airline of the Year Awards including "Airline of the Year" and "Best Airline Based in North America" for the second consecutive year, and "Best Executive/Business Class" for the third consecutive year. For more company information, visit www.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 2004 10-K and its other securities filings, including any amendments thereto, which identify important matters such as the consequences of our significant financial losses and high leverage, terrorist attacks, domestic and international economic conditions, the significant cost of aircraft fuel, labor costs, competition, and industry conditions, including the demand for air travel, the airline pricing environment and industry capacity decisions, regulatory matters and the seasonal nature of the airline business. 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.

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PRELIMINARY TRAFFIC RESULTS

SEPTEMBER

2005

2004

Change

REVENUE PASSENGER MILES (000)

Domestic

3,000,574

2,815,800

6.6

Percent

International

2,520,504

2,244,782

12.3

Percent

Transatlantic

1,446,512

1,246,784

16.0

Percent

Latin America

505,938

513,621

-1.5

Percent

Pacific

568,055

484,377

17.3

Percent

Mainline

5,521,079

5,060,581

9.1

Percent

Regional

671,442

577,374

16.3

Percent

Consolidated

6,192,521

5,637,955

9.8

Percent

AVAILABLE SEAT MILES (000)

Domestic

3,795,900

3,791,879

0.1

Percent

International

3,342,878

2,937,858

13.8

Percent

Transatlantic

1,792,082

1,566,876

14.4

Percent

Latin America

762,034

764,708

-0.3

Percent

Pacific

788,762

606,274

30.1

Percent

Mainline

7,138,777

6,729,736

6.1

Percent

Regional

904,619

834,698

8.4

Percent

Consolidated

8,043,397

7,564,434

6.3

Percent

PASSENGER LOAD FACTOR

Domestic

79.0 Percent

74.3 Percent

4.7

Points

International

75.4 Percent

76.4 Percent

-1.0

Points

Transatlantic

80.7 Percent

79.6 Percent

1.1

Points

Latin America

66.4 Percent

67.2 Percent

-0.8

Points

Pacific

72.0 Percent

79.9 Percent

-7.9

Points

Mainline

77.3 Percent

75.2 Percent

2.1

Points

Regional

74.2 Percent

69.2 Percent

5.0

Points

Consolidated

77.0 Percent

74.5 Percent

2.5

Points

ONBOARD PASSENGERS

Mainline

3,249,186

3,113,493

4.4

Percent

Regional

1,239,635

1,078,820

14.9

Percent

Consolidated

4,488,821

4,192,313

7.1

Percent

CARGO REVENUE TON MILES (000)

Total

82,972

84,763

-2.1

Percent

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PRELIMINARY TRAFFIC RESULTS

YEAR-TO-DATE

2005

2004

Change

REVENUE PASSENGER MILES (000)

Domestic

29,853,959

28,466,521

4.9

Percent

International

23,729,593

21,000,396

13.0

Percent

Transatlantic

11,654,819

10,016,129

16.4

Percent

Latin America

7,019,028

6,607,238

6.2

Percent

Pacific

5,055,746

4,377,029

15.5

Percent

Mainline

53,583,552

49,466,917

8.3

Percent

Regional

6,581,865

5,447,291

20.8

Percent

Consolidated

60,165,417

54,914,208

9.6

Percent

AVAILABLE SEAT MILES (000)

Domestic

36,664,999

36,837,133

-0.5

Percent

International

30,357,522

26,970,602

12.6

Percent

Transatlantic

14,436,433

12,470,798

15.8

Percent

Latin America

9,235,208

8,903,683

3.7

Percent

Pacific

6,685,881

5,596,121

19.5

Percent

Mainline

67,022,521

63,807,735

5.0

Percent

Regional

8,878,237

7,697,334

15.3

Percent

Consolidated

75,900,758

71,505,069

6.1

Percent

PASSENGER LOAD FACTOR

Domestic

81.4 Percent

77.3 Percent

4.1

Points

International

78.2 Percent

77.9 Percent

0.3

Points

Transatlantic

80.7 Percent

80.3 Percent

0.4

Points

Latin America

76.0 Percent

74.2 Percent

1.8

Points

Pacific

75.6 Percent

78.2 Percent

-2.6

Points

Mainline

79.9 Percent

77.5 Percent

2.4

Points

Regional

74.1 Percent

70.8 Percent

3.3

Points

Consolidated

79.3 Percent

76.8 Percent

2.5

Points

ONBOARD PASSENGERS

Mainline

33,705,834

32,119,380

4.9

Percent

Regional

11,861,733

10,110,365

17.3

Percent

Consolidated

45,567,567

42,229,745

7.9

Percent

CARGO REVENUE TON MILES (000)

Total

744,977

749,557

-0.6

Percent

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PRELIMINARY OPERATIONAL AND FINANCIAL RESULTS


SEPTEMBER


2005


2004


Change

On-Time Performance 1

79.5%

85.9%

(6.4)

Points

Completion Factor 2

96.9%

98.5%

(1.6)

Points


YEAR-TO-DATE


2005


2004


Change

On-Time Performance 1

77.2%

78.4%

(1.2)

Points

Completion Factor 2

99.3%

99.5%

(0.2)

Points


August 2005 consolidated breakeven load factor 3


77.5


Percent

August 2005 year-over-year consolidated RASM change

5.0

Percent

August 2005 year-over-year mainline RASM change

4.7

Percent

September 2005 estimated year-over-year consolidated RASM change

8.0-9.0

Percent

September 2005 estimated year-over-year mainline RASM change

7.5-8.5

Percent

September 2005 estimated average price per gallon of fuel, including fuel taxes

2.05

Dollars

Third quarter 2005 estimated average price per gallon of fuel, including fuel

taxes

1.87

Dollars

September 2005 estimated consolidated breakeven load factor 3

85

Percent

September 2005 actual consolidated load factor 4

77.0

Percent

October 2005 estimated consolidated breakeven load factor 3

89

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 Includes Continental Airlines and Continental Express

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