Continental Airlines Reports September 2009 Operational Performance

HOUSTON, Oct. 1 /PRNewswire-FirstCall/ — Continental Airlines (NYSE: CAL) today reported a September consolidated (mainline plus regional) load factor of 81.5 percent, 5.0 points above the September 2008 consolidated load factor, and a mainline load factor of 82.2 percent, 4.8 points above the September 2008 mainline load factor. The carrier reported a domestic mainline September load factor of 84.0 percent, 5.5 points above the September 2008 domestic mainline load factor, and an international mainline load factor of 80.4 percent, 4.1 points above September 2008. All four September load factors were records for the month.

During the month, Continental recorded a U.S. Department of Transportation (DOT) on-time arrival rate of 88.4 percent and a mainline segment completion factor of 99.8 percent. Continental also recorded a record number of 100 percent completion factor days for the month of September.

In September 2009, Continental flew 6.9 billion consolidated revenue passenger miles (RPMs) and 8.5 billion consolidated available seat miles (ASMs), resulting in a consolidated traffic increase of 7.0 percent and a capacity increase of 0.5 percent as compared to September 2008. In September 2009, Continental flew 6.2 billion mainline RPMs and 7.6 billion mainline ASMs, resulting in a mainline traffic increase of 6.7 percent and a mainline capacity increase of 0.5 percent as compared to September 2008. Domestic mainline traffic was 3.2 billion RPMs in September 2009, up 9.8 percent from September 2008, and domestic mainline capacity was 3.8 billion ASMs, up 2.7 percent from September 2008. September 2008 operations were impacted by the effects of Hurricane Ike, which caused a multi-day closure of the Houston hub and reduced September capacity.

For September 2009, consolidated passenger revenue per available seat mile (RASM) is estimated to have decreased between 18.5 and 19.5 percent compared to September 2008, while mainline RASM is estimated to have decreased between 20.0 and 21.0 percent. September 2008 results included a 3 point increase in both consolidated and mainline RASM related to a reduction in the company’s frequent flyer liability. For August 2009, consolidated passenger RASM decreased 17.2 percent compared to August 2008, while mainline passenger RASM decreased 17.9 percent compared to August 2008.

Continental ended the third quarter 2009 with an unrestricted cash, cash equivalents and short-term investments balance of approximately $2.55 billion.

Continental’s regional operations had a September load factor of 75.8 percent, 6.3 points above the September 2008 regional load factor. Regional RPMs were 725.0 million and regional ASMs were 956.9 million in September 2009, resulting in a traffic increase of 9.0 percent and a capacity decrease of 0.1 percent versus September 2008.

Continental Airlines is the world’s fifth largest airline. Continental, together with Continental Express and Continental Connection, has more than 2,750 daily departures throughout the Americas, Europe and Asia, serving 133 domestic and 132 international destinations. More than 750 additional points are served via current alliance partners. Continental has hubs serving New York, Houston, Cleveland and Guam, and together with its regional partners, carries approximately 63 million passengers per year.

Celebrating its 75th anniversary this year, Continental consistently earns awards and critical acclaim for both its operation and its corporate culture. For the sixth consecutive year, FORTUNE magazine named Continental the No. 1 World’s Most Admired Airline on its 2009 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 2008 Form 10-K and its other securities filings, including any amendments thereto, which identify important matters such as the significant volatility in the cost of aircraft fuel, its transition to a new global alliance, the consequences of its high leverage and other significant capital commitments, its high labor and pension costs, delays in scheduled aircraft deliveries, 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 recession in the U.S. and global economies, the airline pricing environment, terrorist attacks, regulatory matters, excessive taxation, industry consolidation, the availability and cost of insurance, public health threats 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                              2009         2008        Change
     REVENUE PASSENGER MILES (000)
       Domestic                           3,173,371    2,889,642   9.8 Percent

       International                      3,048,654    2,939,376   3.7 Percent
       Transatlantic                      1,727,480    1,779,464  -2.9 Percent
       Latin America                        635,693      591,423   7.5 Percent
       Pacific                              685,481      568,489  20.6 Percent

       Mainline                           6,222,025    5,829,018   6.7 Percent
       Regional                             724,977      665,285   9.0 Percent
       Consolidated                       6,947,002    6,494,303   7.0 Percent

     AVAILABLE SEAT MILES (000)
       Domestic                           3,778,821    3,678,834   2.7 Percent

       International                      3,791,178    3,849,950  -1.5 Percent
       Transatlantic                      2,079,010    2,338,025 -11.1 Percent
       Latin America                        819,389      774,378   5.8 Percent
       Pacific                              892,779      737,547  21.0 Percent

       Mainline                           7,569,999    7,528,784   0.5 Percent
       Regional                             956,913      957,659  -0.1 Percent
       Consolidated                       8,526,912    8,486,443   0.5 Percent

     PASSENGER LOAD FACTOR
       Domestic                        84.0 Percent 78.5 Percent   5.5 Points

       International                   80.4 Percent 76.3 Percent   4.1 Points
       Transatlantic                   83.1 Percent 76.1 Percent   7.0 Points
       Latin America                   77.6 Percent 76.4 Percent   1.2 Points
       Pacific                         76.8 Percent 77.1 Percent  -0.3 Points

       Mainline                        82.2 Percent 77.4 Percent   4.8 Points
       Regional                        75.8 Percent 69.5 Percent   6.3 Points
       Consolidated                    81.5 Percent 76.5 Percent   5.0 Points

     ONBOARD PASSENGERS
       Mainline                           3,330,332    3,162,971   5.3 Percent
       Regional                           1,350,709    1,239,585   9.0 Percent
       Consolidated                       4,681,041    4,402,556   6.3 Percent

     CARGO REVENUE TON MILES (000)
       Total                                 84,370       78,161   7.9 Percent

                              PRELIMINARY TRAFFIC RESULTS

     YEAR-TO-DATE                        2009           2008       Change
     REVENUE PASSENGER MILES (000)
       Domestic                       30,522,134     33,059,679  -7.7 Percent

       International                  30,066,409     31,198,331  -3.6 Percent
       Transatlantic                  15,426,106     16,593,207  -7.0 Percent
       Latin America                   8,999,186      9,173,141  -1.9 Percent
       Pacific                         5,641,117      5,431,983   3.9 Percent

       Mainline                       60,588,543     64,258,010  -5.7 Percent
       Regional                        6,984,255      7,603,772  -8.1 Percent
       Consolidated                   67,572,798     71,861,782  -6.0 Percent

     AVAILABLE SEAT MILES (000)
       Domestic                       35,966,166     39,572,803  -9.1 Percent

       International                  38,151,937     39,551,824  -3.5 Percent
       Transatlantic                  19,582,526     21,367,474  -8.4 Percent
       Latin America                  11,061,249     11,109,442  -0.4 Percent
       Pacific                         7,508,162      7,074,908   6.1 Percent

       Mainline                       74,118,103     79,124,627  -6.3 Percent
       Regional                        9,144,698      9,937,632  -8.0 Percent
       Consolidated                   83,262,801     89,062,259  -6.5 Percent

     PASSENGER LOAD FACTOR
       Domestic                     84.9 Percent   83.5 Percent   1.4 Points

       International                78.8 Percent   78.9 Percent  -0.1 Points
       Transatlantic                78.8 Percent   77.7 Percent   1.1 Points
       Latin America                81.4 Percent   82.6 Percent  -1.2 Points
       Pacific                      75.1 Percent   76.8 Percent  -1.7 Points

       Mainline                     81.7 Percent   81.2 Percent   0.5 Points
       Regional                     76.4 Percent   76.5 Percent  -0.1 Points
       Consolidated                 81.2 Percent   80.7 Percent   0.5 Points

     ONBOARD PASSENGERS
       Mainline                       34,618,306     37,714,489  -8.2 Percent
       Regional                       12,932,311     13,794,791  -6.3 Percent
       Consolidated                   47,550,617     51,509,280  -7.7 Percent

     CARGO REVENUE TON MILES (000)
       Total                             664,768        769,567 -13.6 Percent

                     PRELIMINARY OPERATIONAL AND FINANCIAL RESULTS

    SEPTEMBER                        2009        2008              Change

    On-Time Performance (1)         88.4%       82.1%               6.3 Points
    Completion Factor (2)           99.8%       94.4%               5.4 Points
    August 2009 year-over-year
     consolidated RASM change                                   (17.2) Percent
    August 2009 year-over-year
     mainline RASM change                                       (17.9) Percent
    September 2009 estimated
     year-over-year
     consolidated RASM change                          (18.5) - (19.5) Percent
    September 2009 estimated
     year-over-year mainline RASM
     change                                            (20.0) - (21.0) Percent
    September 2009 estimated average
     price per gallon of fuel,
     including fuel taxes                                         1.98 Dollars
    Third Quarter 2009 estimated
     average price per gallon of fuel,
     including fuel taxes                                         1.99 Dollars

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

SOURCE Continental Airlines