Continental Airlines Reports September 2008 Operational Performance

HOUSTON, Oct 01, 2008 /PRNewswire-FirstCall via COMTEX News Network/—Continental Airlines (NYSE: CAL) today reported a September consolidated (mainline plus regional) load factor of 76.5 percent, 2.5 points below the September 2007 consolidated load factor, and a mainline load factor of 77.4 percent, 1.8 points below the September 2007 mainline load factor. In addition, the carrier reported a domestic mainline September load factor of 78.5 percent, 2.6 points below the September 2007 domestic mainline load factor, and an international mainline load factor of 76.3 percent, 0.9 points below September 2007.
During the month, Continental recorded a U.S. Department of Transportation (DOT) on-time arrival rate of 82.1 percent and a mainline segment completion factor of 94.4 percent. Continental’s operational performance was negatively impacted by Hurricane Ike in mid-September.

In September 2008, Continental flew 6.5 billion consolidated revenue passenger miles (RPMs) and 8.5 billion consolidated available seat miles (ASMs), resulting in a consolidated traffic decrease of 10.9 percent and a capacity decrease of 8.1 percent as compared to September 2007. In September 2008, Continental flew 5.8 billion mainline RPMs and 7.5 billion mainline ASMs, resulting in a mainline traffic decrease of 10.9 percent and a mainline capacity decrease of 8.8 percent as compared to September 2007. Domestic mainline traffic was 2.9 billion RPMs in September 2008, down 16.2 percent from September 2007, and domestic mainline capacity was 3.7 billion ASMs, down 13.4 percent from September 2007.

For September 2008, consolidated passenger revenue per available seat mile (RASM) is estimated to have increased between 8.0 and 9.0 percent compared to September 2007, while mainline passenger RASM is estimated to have increased between 9.0 and 10.0 percent compared to September 2007. For August 2008, consolidated passenger RASM increased 5.3 percent compared to August 2007, while mainline passenger RASM increased 6.1 percent compared to August 2007.

Continental ended the third quarter with an unrestricted cash, cash equivalents and short-term investments balance of approximately $2.76 billion. This balance excludes all student loan-related auction rate securities.

Continental’s regional operations had a September load factor of 69.5 percent, 7.0 points below the September 2007 regional load factor. Regional RPMs were 665.3 million and regional ASMs were 957.7 million in September 2008, resulting in a traffic decrease of 10.6 percent and a capacity decrease of 1.5 percent versus September 2007.

Continental Airlines is the world’s fifth largest airline. Continental, together with Continental Express and Continental Connection, has more than 2,500 daily departures throughout the Americas, Europe and Asia, serving 122 domestic and 120 international destinations. More than 550 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 69 million passengers per year.

Continental consistently earns awards and critical acclaim for both its operation and its corporate culture. For the fifth consecutive year, FORTUNE magazine named Continental the No. 1 World’s Most Admired Airline on its 2008 list of World’s Most Admired Companies. For more company information, go to 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 2007 10-K and its other securities filings, including any amendments thereto, which identify important matters such as the consequences of the company’s high leverage, the significant cost of aircraft fuel, the company’s transition to a new global alliance, delays in scheduled aircraft deliveries, its high labor and pension costs, service interruptions at one of its hub airports, disruptions to the operations of its regional operators, disruptions in its computer systems, and industry conditions, including the airline pricing environment, industry capacity decisions, industry consolidation, terrorist attacks, regulatory matters, excessive taxation, the availability and cost of insurance, public health threats, an economic downturn in the U.S. and global economies 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, except as required by applicable law.

                         PRELIMINARY TRAFFIC RESULTS

    SEPTEMBER                          2008            2007        Change

    REVENUE PASSENGER MILES (000)
      Domestic                    2,889,642       3,448,145      -16.2 Percent

      International               2,939,376       3,097,052       -5.1 Percent
      Transatlantic               1,779,464       1,814,237       -1.9 Percent
      Latin America                 591,423         671,055      -11.9 Percent
      Pacific                       568,489         611,760       -7.1 Percent

      Mainline                    5,829,018       6,545,197      -10.9 Percent
      Regional                      665,285         743,920      -10.6 Percent
      Consolidated                6,494,303       7,289,117      -10.9 Percent

    AVAILABLE SEAT MILES (000)
      Domestic                    3,678,834       4,250,123      -13.4 Percent

      International               3,849,950       4,009,227       -4.0 Percent
      Transatlantic               2,338,025       2,303,334        1.5 Percent
      Latin America                 774,378         898,551      -13.8 Percent
      Pacific                       737,547         807,342       -8.6 Percent

      Mainline                    7,528,784       8,259,350       -8.8 Percent
      Regional                      957,659         972,306       -1.5 Percent
      Consolidated                8,486,443       9,231,656       -8.1 Percent
    PASSENGER LOAD FACTOR
      Domestic                 78.5 Percent    81.1 Percent       -2.6 Points

      International            76.3 Percent    77.2 Percent       -0.9 Points
      Transatlantic            76.1 Percent    78.8 Percent       -2.7 Points
      Latin America            76.4 Percent    74.7 Percent        1.7 Points
      Pacific                  77.1 Percent    75.8 Percent        1.3 Points

      Mainline                 77.4 Percent    79.2 Percent       -1.8 Points
      Regional                 69.5 Percent    76.5 Percent       -7.0 Points
      Consolidated             76.5 Percent    79.0 Percent       -2.5 Points
    ONBOARD PASSENGERS
      Mainline                    3,162,971       3,751,807      -15.7 Percent
      Regional                    1,239,585       1,383,022      -10.4 Percent
      Consolidated                4,402,556       5,134,829      -14.3 Percent

    CARGO REVENUE TON MILES (000)
      Total                          78,208          86,687       -9.8 Percent




                         PRELIMINARY TRAFFIC RESULTS

    YEAR-TO-DATE                       2008            2007        Change

    REVENUE PASSENGER MILES (000)
      Domestic                   33,059,679      34,292,569       -3.6 Percent

      International              31,198,331      29,746,500        4.9 Percent
      Transatlantic              16,593,207      15,282,538        8.6 Percent
      Latin America               9,173,141       8,672,677        5.8 Percent
      Pacific                     5,431,983       5,791,285       -6.2 Percent

      Mainline                   64,258,010      64,039,069        0.3 Percent
      Regional                    7,603,772       7,456,823        2.0 Percent
      Consolidated               71,861,782      71,495,892        0.5 Percent

    AVAILABLE SEAT MILES (000)
      Domestic                   39,572,803      40,646,586       -2.6 Percent

      International              39,551,824      37,045,626        6.8 Percent
      Transatlantic              21,367,474      19,032,122       12.3 Percent
      Latin America              11,109,442      10,654,600        4.3 Percent
      Pacific                     7,074,908       7,358,904       -3.9 Percent

      Mainline                   79,124,627      77,692,212        1.8 Percent
      Regional                    9,937,632       9,495,359        4.7 Percent
      Consolidated               89,062,259      87,187,571        2.2 Percent
    PASSENGER LOAD FACTOR
      Domestic                 83.5 Percent    84.4 Percent       -0.9 Points

      International            78.9 Percent    80.3 Percent       -1.4 Points
      Transatlantic            77.7 Percent    80.3 Percent       -2.6 Points
      Latin America            82.6 Percent    81.4 Percent        1.2 Points
      Pacific                  76.8 Percent    78.7 Percent       -1.9 Points

      Mainline                 81.2 Percent    82.4 Percent       -1.2 Points
      Regional                 76.5 Percent    78.5 Percent       -2.0 Points
      Consolidated             80.7 Percent    82.0 Percent       -1.3 Points
    ONBOARD PASSENGERS
      Mainline                   37,714,489      38,649,351       -2.4 Percent
      Regional                   13,794,791      13,549,347        1.8 Percent
      Consolidated               51,509,280      52,198,698       -1.3 Percent
    CARGO REVENUE TON MILES (000)
      Total                         770,009         757,688        1.6 Percent



                PRELIMINARY OPERATIONAL AND FINANCIAL RESULTS

    SEPTEMBER                          2008            2007        Change
    On-Time Performance (1)           82.1%           88.0%       (5.9) Points
    Completion Factor (2)             94.4%           99.8%       (5.4) Points
    August 2008 year-over-year consolidated RASM change            5.3 Percent
    August 2008 year-over-year mainline RASM change                6.1 Percent
    September 2008 estimated year-over-year consolidated RASM
     change                                                  8.0 - 9.0 Percent
    September 2008 estimated year-over-year mainline RASM
     change                                                 9.0 - 10.0 Percent
    September 2008 estimated average price per gallon of
     fuel, including fuel taxes                                   3.77 Dollars
    Third Quarter 2008 estimated average price per gallon
     of fuel, including fuel taxes                                3.86 Dollars

    (1) Department of Transportation Arrivals within 14 minutes
    (2) Mainline Segment Completion Percentage

SOURCE Continental Airlines

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