View:
Download DOC
Download PDF
Download XLS
UNITED STATES

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): September 1, 2006

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 September 1, 2006, we issued a press release announcing our August 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 August 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.

 

 

September 5, 2006

By  /s/ Jennifer L. Vogel

 

      Jennifer L. Vogel

 

Senior Vice President, General Counsel,

Secretary and Corporate Compliance Officer

 

 
   
   
   

 

 

EXHIBIT INDEX

99.1

Press Release for August Performance
   

 

 

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 AUGUST 2006

OPERATIONAL PERFORMANCE

HOUSTON, Sept. 1, 2006 - Continental Airlines (NYSE: CAL) today reported an August consolidated (mainline plus regional) load factor of 82.4 percent, 0.6 points above last year's August consolidated load factor. The carrier reported a mainline load factor of 83.0 percent, 0.5 points above the August 2005 mainline load factor, and a domestic mainline load factor of 85.5 percent, 1.2 points above August 2005. All three were records for August. In addition, the airline had an international mainline load factor of 80.3 percent, 0.2 points below August 2005.

During the month, Continental recorded a U.S. Department of Transportation on-time arrival rate of 76.3 percent and a mainline completion factor of 99.8 percent.

In August 2006, Continental flew 8.4 billion consolidated revenue passenger miles (RPMs) and 10.2 billion consolidated available seat miles (ASMs), resulting in a traffic increase of 9.3 percent and a capacity increase of 8.5 percent as compared to August 2005. In August 2006, Continental flew 7.4 billion mainline RPMs and 9.0 billion mainline ASMs, resulting in a mainline traffic increase of 8.9 percent and an 8.2 percent increase in mainline capacity as compared to August 2005. Domestic mainline traffic was 4.0 billion RPMs in August 2006, up 7.1 percent from August 2005, and domestic mainline capacity was 4.7 billion ASMs, up 5.5 percent from August 2005.

For August 2006, consolidated passenger revenue per available seat mile (RASM) is estimated to have increased between 6.5 and 7.5 percent compared to August 2005, while mainline passenger RASM is estimated to have increased between 5.5 and 6.5 percent compared to August 2005. Continental estimates that August 2006 year-over-year consolidated and mainline RASM were negatively impacted by approximately 1.5 points due to the elevated security concerns during the month. For July 2006, consolidated passenger RASM increased 9.6 percent compared to July 2005, while mainline passenger RASM increased 8.9 percent from July 2005.

Continental's regional operations had a record August load factor of 78.0 percent, 1.6 points above last year's August load factor. Regional RPMs were 959.4 million and regional ASMs were 1,230.0 million in August 2006, resulting in a traffic increase of 12.8 percent and a capacity increase of 10.5 percent versus August 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 154 domestic and 138 international destinations. More than 400 additional points are served via SkyTeam alliance airlines.  With more than 43,000 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 SurveySM. 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.

 

PRELIMINARY TRAFFIC RESULTS

AUGUST

2006

2005

Change

REVENUE PASSENGER MILES (000)

Domestic

3,981,998

3,717,025

7.1

Percent

International

3,456,971

3,113,916

11.0

Percent

Transatlantic

1,765,194

1,581,001

11.7

Percent

Latin America

1,020,205

888,814

14.8

Percent

Pacific

671,573

644,100

4.3

Percent

Mainline

7,438,969

6,830,941

8.9

Percent

Regional

959,435

850,312

12.8

Percent

Consolidated

8,398,405

7,681,253

9.3

Percent

AVAILABLE SEAT MILES (000)

Domestic

4,654,805

4,410,230

5.5

Percent

International

4,305,036

3,868,758

11.3

Percent

Transatlantic

2,200,539

1,896,411

16.0

Percent

Latin America

1,259,958

1,136,026

10.9

Percent

Pacific

844,538

836,322

1.0

Percent

Mainline

8,959,841

8,278,988

8.2

Percent

Regional

1,230,027

1,112,894

10.5

Percent

Consolidated

10,189,867

9,391,882

8.5

Percent

PASSENGER LOAD FACTOR

Domestic

85.5 Percent

84.3 Percent

1.2

Points

International

80.3 Percent

80.5 Percent

-0.2

Points

Transatlantic

80.2 Percent

83.4 Percent

-3.2

Points

Latin America

81.0 Percent

78.2 Percent

2.8

Points

Pacific

79.5 Percent

77.0 Percent

2.5

Points

Mainline

83.0 Percent

82.5 Percent

0.5

Points

Regional

78.0 Percent

76.4 Percent

1.6

Points

Consolidated

82.4 Percent

81.8 Percent

0.6

Points

ONBOARD PASSENGERS

Mainline

4,356,907

4,096,856

6.3

Percent

Regional

1,679,477

1,505,116

11.6

Percent

Consolidated

6,036,384

5,601,972

7.8

Percent

CARGO REVENUE TON MILES (000)

Total

87,734

80,805

8.6

Percent

PRELIMINARY TRAFFIC RESULTS

YEAR-TO-DATE

2006

2005

Change

REVENUE PASSENGER MILES (000)

Domestic

29,155,593

26,853,384

8.6

Percent

International

24,690,106

21,209,089

16.4

Percent

Transatlantic

11,992,425

10,208,308

17.5

Percent

Latin America

7,661,192

6,513,090

17.6

Percent

Pacific

5,036,489

4,487,691

12.2

Percent

Mainline

53,845,699

48,062,473

12.0

Percent

Regional

6,991,667

5,910,425

18.3

Percent

Consolidated

60,837,366

53,972,898

12.7

Percent

AVAILABLE SEAT MILES (000)

Domestic

34,652,938

32,869,100

5.4

Percent

International

31,244,749

27,014,644

15.7

Percent

Transatlantic

15,132,590

12,644,351

19.7

Percent

Latin America

9,582,797

8,473,174

13.1

Percent

Pacific

6,529,362

5,897,119

10.7

Percent

Mainline

65,897,687

59,883,744

10.0

Percent

Regional

8,903,610

7,973,618

11.7

Percent

Consolidated

74,801,297

67,857,362

10.2

Percent

PASSENGER LOAD FACTOR

Domestic

84.1 Percent

81.7 Percent

2.4

Points

International

79.0 Percent

78.5 Percent

0.5

Points

Transatlantic

79.2 Percent

80.7 Percent

-1.5

Points

Latin America

79.9 Percent

76.9 Percent

3.0

Points

Pacific

77.1 Percent

76.1 Percent

1.0

Points

Mainline

81.7 Percent

80.3 Percent

1.4

Points

Regional

78.5 Percent

74.1 Percent

4.4

Points

Consolidated

81.3 Percent

79.5 Percent

1.8

Points

ONBOARD PASSENGERS

Mainline

33,177,295

30,456,648

8.9

Percent

Regional

12,341,311

10,622,098

16.2

Percent

Consolidated

45,518,606

41,078,746

10.8

Percent

CARGO REVENUE TON MILES (000)

Total

703,720

662,005

6.3

Percent

 

 

PRELIMINARY OPERATIONAL AND FINANCIAL RESULTS

AUGUST

2006

2005

Change

On-Time Performance 1

76.3%

75.7%

0.6

Points

Completion Factor 2

99.8%

99.6%

0.2

Points

July 2006 year-over-year consolidated RASM change

9.6

Percent

July 2006 year-over-year mainline RASM change

8.9

Percent

Aug 2006 estimated year-over-year consolidated RASM change

6.5-7.5

Percent

Aug 2006 estimated year-over-year mainline RASM change

5.5-6.5

Percent

Aug 2006 estimated average price per gallon of fuel, including fuel taxes

2.25

Dollars

Third Quarter 2006 estimated average price per gallon of fuel, including fuel taxes

2.21

Dollars

1 Department of Transportation Arrivals within 14 minutes

2 Mainline Mileage Completion Percentage

###