Continental Airlines Reports December 2008 Operational Performance

HOUSTON, Jan. 5 /PRNewswire-FirstCall/ — Continental Airlines (NYSE: CAL) today reported a December consolidated (mainline plus regional) load factor of 79.9 percent, 1.2 points above the December 2007 consolidated load factor. The carrier reported a mainline load factor of 80.4 percent, 1.6 points above the December 2007 mainline load factor, and a domestic mainline December load factor of 84.0 percent, 2.6 points above the December 2007 domestic mainline load factor. All three load factors were records for the month. In addition, the airline reported an international mainline load factor of 76.6 percent, 0.5 points above December 2007.

During the month, Continental recorded a U.S. Department of Transportation (DOT) on-time arrival rate of 63.3 percent and a mainline segment completion factor of 98.5 percent. Continental’s on-time arrival rate was negatively impacted by challenging winter weather conditions throughout its operating network, including a very rare snow fall in Houston on Dec. 10.

In December 2008, Continental flew 7.1 billion consolidated revenue passenger miles (RPMs) and 8.9 billion consolidated available seat miles (ASMs), resulting in a consolidated traffic decrease of 6.7 percent and a capacity decrease of 8.1 percent as compared to December 2007. In December 2008, Continental flew 6.3 billion mainline RPMs and 7.9 billion mainline ASMs, resulting in a mainline traffic decrease of 7.3 percent and a mainline capacity decrease of 9.0 percent as compared to December 2007. Domestic mainline traffic was 3.3 billion RPMs in December 2008, down 9.3 percent from December 2007, and domestic mainline capacity was 4.0 billion ASMs, down 12.1 percent from December 2007.

For December 2008, consolidated passenger revenue per available seat mile (RASM) is estimated to have increased between 3.5 and 4.5 percent compared to December 2007, while mainline passenger RASM is estimated to have increased between 4.0 and 5.0 percent compared to December 2007.

For November 2008, consolidated passenger RASM increased 1.2 percent compared to November 2007, while mainline passenger RASM increased 2.4 percent compared to November 2007.

During the fourth quarter 2008, Continental raised $196 million in cash, after sales commissions, through the sale of 12.6 million shares of Class B common stock at an average price to the public of $15.84 per share pursuant to its equity distribution agreements with UBS Securities LLC and Morgan Stanley & Co. Incorporated. Continental has concluded this offering. Including the proceeds from this offering, Continental ended the fourth quarter 2008 with an unrestricted cash and short-term investments balance of $2.65 billion.

Continental’s regional operations had a December load factor of 76.1 percent, 1.2 points below the December 2007 regional load factor. Regional RPMs were 776.4 million and regional ASMs were 1,020.3 million in December 2008, resulting in a traffic decrease of 2.0 percent and a capacity decrease of 0.5 percent versus December 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 134 domestic and 131 international destinations. More than 675 additional points are served via alliance partners. With more than 43,000 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 volatility in the 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.

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                                       PRELIMINARY TRAFFIC RESULTS
     DECEMBER                     2008          2007           Change
     REVENUE PASSENGER MILES
     (000)
         Domestic               3,349,536     3,692,343       -9.3  Percent

         International          2,985,131     3,138,375       -4.9  Percent
         Transatlantic          1,458,911     1,543,411       -5.5  Percent
         Latin America            980,140       976,440        0.4  Percent
         Pacific                  546,080       618,524      -11.7  Percent

         Mainline               6,334,667     6,830,718       -7.3  Percent
         Regional                 776,397       792,500       -2.0  Percent
         Consolidated           7,111,064     7,623,218       -6.7  Percent
     AVAILABLE SEAT MILES (000)
         Domestic               3,986,616     4,537,528      -12.1  Percent

         International          3,894,519     4,125,710       -5.6  Percent
         Transatlantic          1,931,521     2,021,735       -4.5  Percent
         Latin America          1,227,987     1,273,197       -3.6  Percent
         Pacific                  735,011       830,778      -11.5  Percent

         Mainline               7,881,135     8,663,238       -9.0  Percent
         Regional               1,020,331     1,025,727       -0.5  Percent
         Consolidated           8,901,466     9,688,965       -8.1  Percent
     PASSENGER LOAD FACTOR
         Domestic            84.0 Percent  81.4 Percent        2.6  Points

         International       76.6 Percent  76.1 Percent        0.5  Points
         Transatlantic       75.5 Percent  76.3 Percent       -0.8  Points
         Latin America       79.8 Percent  76.7 Percent        3.1  Points
         Pacific             74.3 Percent  74.5 Percent       -0.2  Points

         Mainline            80.4 Percent  78.8 Percent        1.6  Points
         Regional            76.1 Percent  77.3 Percent       -1.2  Points
         Consolidated        79.9 Percent  78.7 Percent        1.2  Points
     ONBOARD PASSENGERS
         Mainline               3,787,695     4,145,405       -8.6  Percent
         Regional               1,412,222     1,432,261       -1.4  Percent
         Consolidated           5,199,917     5,577,666       -6.8  Percent
     CARGO REVENUE TON MILES
     (000)
         Total                     71,651        92,231      -22.3  Percent

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                                       PRELIMINARY TRAFFIC RESULTS
     FULL YEAR                    2008          2007            Change
     REVENUE PASSENGER MILES
     (000)
         Domestic              42,853,991    45,356,239      -5.5  Percent

         International         39,952,773    38,953,687       2.6  Percent
         Transatlantic         21,273,235    20,136,822       5.6  Percent
         Latin America         11,632,551    11,174,860       4.1  Percent
         Pacific                7,046,987     7,642,005      -7.8  Percent

         Mainline              82,806,764    84,309,926      -1.8  Percent
         Regional               9,880,333     9,855,804       0.2  Percent
         Consolidated          92,687,097    94,165,730      -1.6  Percent
     AVAILABLE SEAT MILES
      (000)
         Domestic              51,434,315    54,090,839      -4.9  Percent

         International         51,092,766    49,048,119       4.2  Percent
         Transatlantic         27,606,158    25,350,543       8.9  Percent
         Latin America         14,219,042    13,875,830       2.5  Percent
         Pacific                9,267,566     9,821,746      -5.6  Percent

         Mainline             102,527,081   103,138,958      -0.6  Percent
         Regional              12,983,799    12,598,869       3.1  Percent
         Consolidated         115,510,880   115,737,827      -0.2  Percent
     PASSENGER LOAD FACTOR
         Domestic            83.3 Percent  83.9 Percent      -0.6  Points

         International       78.2 Percent  79.4 Percent      -1.2  Points
         Transatlantic       77.1 Percent  79.4 Percent      -2.3  Points
         Latin America       81.8 Percent  80.5 Percent       1.3  Points
         Pacific             76.0 Percent  77.8 Percent      -1.8  Points

         Mainline            80.8 Percent  81.7 Percent      -0.9  Points
         Regional            76.1 Percent  78.2 Percent      -2.1  Points
         Consolidated        80.2 Percent  81.4 Percent      -1.2  Points
     ONBOARD PASSENGERS
         Mainline              48,682,360    50,959,989      -4.5  Percent
         Regional              18,009,899    17,970,423       0.2  Percent
         Consolidated          66,692,259    68,930,412      -3.2  Percent
     CARGO REVENUE TON MILES
      (000)
         Total                  1,006,327     1,037,614      -3.0  Percent

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                          PRELIMINARY OPERATIONAL AND FINANCIAL RESULTS
    DECEMBER                2008                2007             Change
    On-Time Performance(1)  63.3%               66.4%         (3.1) Points
    Completion Factor (2)   98.5%               98.4%          0.1  Points
    November 2008 year-over-year consolidated RASM change      1.2  Percent
    November 2008 year-over-year mainline RASM change          2.4  Percent
    December 2008 estimated year-over-year
     consolidated RASM change                            3.5 - 4.5  Percent
    December 2008 estimated year-over-year mainline
     RASM change                                         4.0 - 5.0  Percent
    December 2008 estimated average price per gallon
     of fuel, including fuel taxes                            2.34  Dollars
    Fourth Quarter 2008 estimated average price per
     gallon of fuel, including fuel taxes                     2.92  Dollars

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

SOURCE Continental Airlines