8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): January 2, 2007

CONTINENTAL AIRLINES, INC.

(Exact Name of Registrant as Specified in Its Charter)

DELAWARE

(State or Other Jurisdiction of Incorporation)

1-10323	74-2099724
(Commission File Number)	(IRS Employer Identification No.)

1600 Smith Street, Dept. HQSEO, Houston, Texas	77002
(Address of Principal Executive Offices)	(Zip Code)

(713) 324-2950

(Registrant's Telephone Number, Including Area Code)

______________________________________

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))

	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))

Item 8.01. Other Events.

On January 2, 2007, we issued a press release announcing our December 2006 performance. The press release is filed herewith as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

99.1 Press Release for December Performance

SIGNATURE

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

CONTINENTAL AIRLINES, INC.

January 2, 2007 By  /s/ Chris Kenny         Chris Kenny   Vice President and Controller    

EXHIBIT INDEX

99.1 Press Release for December Performance

EX-99.1

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 DECEMBER 2006

OPERATIONAL PERFORMANCE

HOUSTON, Jan. 2, 2007 - Continental Airlines (NYSE: CAL) today reported a December consolidated (mainline plus regional) load factor of 79.5 percent, 1.8 points above the December 2005 consolidated load factor. The carrier reported a mainline load factor of 79.9 percent, 1.9 points above the December 2005 mainline load factor, and a domestic mainline load factor of 81.8 percent, 2.1 points above December 2005. All three were records for the month. In addition, the airline had an international mainline load factor of 77.5 percent, 1.7 points above December 2005.

During the month, Continental recorded a U.S. Department of Transportation on-time arrival rate of 73.4 percent and a December mainline completion factor of 99.6 percent.

In December 2006, Continental flew 7.5 billion consolidated revenue passenger miles (RPMs) and 9.4 billion consolidated available seat miles (ASMs), resulting in a traffic increase of 6.9 percent and a capacity increase of 4.4 percent as compared to December 2005. In December 2006, Continental flew 6.6 billion mainline RPMs and 8.3 billion mainline ASMs, resulting in a mainline traffic increase of 7.1 percent and a 4.6 percent increase in mainline capacity as compared to December 2005. Domestic mainline traffic was 3.7 billion RPMs in December 2006, up 5.4 percent from December 2005, and domestic mainline capacity was 4.5 billion ASMs, up 2.8 percent from December 2005.

For December 2006, consolidated passenger revenue per available seat mile (RASM) is estimated to have increased between 3.5 and 4.5 percent compared to December 2005, while mainline passenger RASM is estimated to have increased between 5.5 and 6.5 percent compared to December 2005. For November 2006, consolidated passenger RASM increased 3.3 percent compared to November 2005, while mainline passenger RASM increased 4.6 percent from November 2005.

Continental estimates fourth quarter consolidated RASM to have increased between 4.1 and 4.4 percent compared to the fourth quarter 2005, and fourth quarter cost per available seat mile (CASM) to be in line with its most recently provided guidance. As a result, the company expects to report a modest loss for the quarter, excluding special charges.

Continental ended the fourth quarter of 2006 with unrestricted cash and short-term investments of approximately $2.48 billion.

December 2006 sales at continental.com increased 19.0 percent over December 2005.

Continental's regional operations had a record December load factor of 77.0 percent, 1.6 points above the December 2005 load factor. Regional RPMs were 864.7 million and regional ASMs were 1,122.5 million in December 2006, resulting in a traffic increase of 5.8 percent and a capacity increase of 3.6 percent versus December 2005.

Continental Airlines is the world's fifth largest airline. Continental, together with Continental Express and Continental Connection, has more than 3,200 daily departures throughout the Americas, Europe and Asia, serving 151 domestic and 136 international destinations. More than 400 additional points are served via SkyTeam alliance airlines.  With more than 44,000 employees, Continental has hubs serving New York, Houston, Cleveland and Guam, and together with Continental Express, carries approximately 61 million passengers per year. Continental consistently earns awards and critical acclaim for both its operation and its corporate culture.

In 2006, Continental Airlines won its sixth J.D. Power and Associates award since 1996. The carrier received the highest rank in customer satisfaction among network carriers in North America in the J.D. Power and Associates 2006 Airline Satisfaction Index Survey^SM. For the third consecutive year, FORTUNE magazine named Continental the No. 1 Most Admired Global Airline on its 2006 list of Most Admired Global Companies. Continental was also named the No. 1 airline on the publication's 2006 America's Most Admired airline industry list. Additionally, Continental again won major awards at the OAG Airline of the Year Awards including "Best Airline Based in North America" for the third year in a row, and "Best Executive/Business Class" for the fourth consecutive year. 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 2005 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, disruptions in its computer systems, and the seasonal nature of the airline busine ss. 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, except as required by applicable law.

PRELIMINARY TRAFFIC RESULTS
DECEMBER				2006		2005		Change
REVENUE PASSENGER MILES (000)
		Domestic		3,692,649		3,502,067		5.4		Percent
		International		2,924,105		2,678,063		9.2		Percent
		Transatlantic		1,388,403		1,247,101		11.3		Percent
		Latin America		932,655		834,568		11.8		Percent
		Pacific		603,047		596,394		1.1		Percent
		Mainline		6,616,754		6,180,130		7.1		Percent
		Regional		864,673		817,187		5.8		Percent
		Consolidated		7,481,427		6,997,317		6.9		Percent
AVAILABLE SEAT MILES (000)
		Domestic		4,513,702		4,392,163		2.8		Percent
		International		3,771,209		3,531,177		6.8		Percent
		Transatlantic		1,760,431		1,598,923		10.1		Percent
		Latin America		1,206,874		1,136,085		6.2		Percent
		Pacific		803,904		796,169		1.0		Percent
		Mainline		8,284,911		7,923,340		4.6		Percent
		Regional		1,122,500		1,083,351		3.6		Percent
		Consolidated		9,407,411		9,006,691		4.4		Percent
PASSENGER LOAD FACTOR
		Domestic		81.8 Percent		79.7 Percent		2.1		Points
		International		77.5 Percent		75.8 Percent		1.7		Points
		Transatlantic		78.9 Percent		78.0 Percent		0.9		Points
		Latin America		77.3 Percent		73.5 Percent		3.8		Points
		Pacific		75.0 Percent		74.9 Percent		0.1		Points
		Mainline		79.9 Percent		78.0 Percent		1.9		Points
		Regional		77.0 Percent		75.4 Percent		1.6		Points
		Consolidated		79.5 Percent		77.7 Percent		1.8		Points
ONBOARD PASSENGERS
		Mainline		4,126,385		3,918,862		5.3		Percent
		Regional		1,520,399		1,431,241		6.2		Percent
		Consolidated		5,646,784		5,350,103		5.5		Percent
CARGO REVENUE TON MILES (000)
		Total		94,381		91,771		2.8		Percent
PRELIMINARY TRAFFIC RESULTS
YEAR-TO-DATE			2006		2005		Change
REVENUE PASSENGER MILES (000)
	Domestic		43,265,353		39,940,548		8.3		Percent
	International		35,923,404		31,320,573		14.7		Percent
	Transatlantic		17,849,226		15,505,590		15.1		Percent
	Latin America		10,635,518		9,033,775		17.7		Percent
	Pacific		7,438,660		6,781,208		9.7		Percent
	Mainline		79,188,757		71,261,121		11.1		Percent
	Regional		10,324,683		8,937,931		15.5		Percent
	Consolidated		89,513,440		80,199,052		11.6		Percent
AVAILABLE SEAT MILES (000)
	Domestic		51,739,060		49,215,120		5.1		Percent
	International		45,927,523		40,430,681		13.6		Percent
	Transatlantic		22,655,069		19,387,805		16.9		Percent
	Latin America		13,554,639		11,997,375		13.0		Percent
	Pacific		9,717,815		9,045,501		7.4		Percent
	Mainline		97,666,583		89,645,801		8.9		Percent
	Regional		13,251,072		11,972,886		10.7		Percent
	Consolidated		110,917,655		101,618,687		9.2		Percent
PASSENGER LOAD FACTOR
	Domestic		83.6 Percent		81.2 Percent		2.4		Points
	International		78.2 Percent		77.5 Percent		0.7		Points
	Transatlantic		78.8 Percent		80.0 Percent		-1.2		Points
	Latin America		78.5 Percent		75.3 Percent		3.2		Points
	Pacific		76.5 Percent		75.0 Percent		1.5		Points
	Mainline		81.1 Percent		79.5 Percent		1.6		Points
	Regional		77.9 Percent		74.7 Percent		3.2		Points
	Consolidated		80.7 Percent		78.9 Percent		1.8		Points
ONBOARD PASSENGERS
	Mainline		48,782,037		44,939,634		8.6		Percent
	Regional		18,330,783		16,076,042		14.0		Percent
	Consolidated		67,112,820		61,015,676		10.0		Percent
CARGO REVENUE TON MILES (000)
	Total		1,076,472		1,020,350		5.5		Percent

PRELIMINARY OPERATIONAL AND FINANCIAL RESULTS
DECEMBER	2006		2005	Change
On-Time Performance 1	73.4%		71.0%	2.4	Points
Completion Factor 2	99.6%		99.6%	-	Points
November 2006 year-over-year consolidated RASM change				3.3	Percent
November 2006 year-over-year mainline RASM change				4.6	Percent
December 2006 estimated year-over-year consolidated RASM change				3.5-4.5	Percent
December 2006 estimated year-over-year mainline RASM change				5.5-6.5	Percent
December 2006 estimated average price per gallon of fuel, including fuel taxes				1.99	Dollars
Forth Quarter 2006 estimated average price per gallon of fuel, including fuel taxes				2.01	Dollars
1 Department of Transportation Arrivals within 14 minutes
2 Mainline Mileage Completion Percentage
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