UNITED STATES
                    SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C.  20549

                                FORM 10-K/A
(Mark One)
[X]          ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF
                    THE SECURITIES EXCHANGE ACT OF 1934
                FOR THE FISCAL YEAR ENDED DECEMBER 31, 1994

                                    OR

[ ]        TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                    THE SECURITIES EXCHANGE ACT OF 1934
          FOR THE TRANSITION PERIOD FROM __________ TO __________

                        CONTINENTAL AIRLINES, INC.
          (Exact name of registrant as specified in its charter)

                                 Delaware
              (State or other jurisdiction of incorporations)

        0-9781                                 74-2099724
(Commission File Number)           (IRS Employer Identification No.)

              2929 Allen Parkway, Houston, Texas        77019
            (Address of principal executive office)    (Zip Code)

     Registrant's telephone number, including area code:  713-834-5000

        Securities registered pursuant to Section 12(b) of the Act:

                                         Name of Each Exchange
     Title of Each Class                  on Which Registered

    Class A Common Stock,               New York Stock Exchange, Inc.
    par value $.01 per share

    Class B Common Stock,               New York Stock Exchange, Inc.
    par value $.01 per share

        Securities registered pursuant to Section 12(g) of the Act:
                                   None

     Indicate by check mark whether registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.  
Yes     X       No          

    Indicate by check mark if disclosure of delinquent filers pursuant to
Item 405 of Regulation S-K is not contained herein, and will not be
contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form
10-K or any amendment to this Form 10-K. [ ]

    The aggregate market value of the voting stock held by non-affiliates
of the registrant was $188.2 million as of March 31, 1995.

    Indicate by check mark whether the registrant has filed all documents
and reports required to be filed by Section 12, 13 or 15(d) of the
Securities Exchange Act of 1934 subsequent to the distribution of
securities under a plan confirmed by a court.  Yes    X     No        

                              _______________

    As of March 31, 1995, 6,301,056 shares of Class A Common Stock and
20,471,581 shares of Class B Common Stock were outstanding.

                    DOCUMENTS INCORPORATED BY REFERENCE
                    Proxy Statement for Annual Meeting
          of Stockholders to be held on June 5, 1995:   PART III



Item 8.  The consolidated balance sheets are amended and restated in their
         entirety as follows:


<TABLE>
                        CONTINENTAL AIRLINES, INC.
                        CONSOLIDATED BALANCE SHEETS
             (In thousands of dollars, except for share data)

<CAPTION>
                                              December 31,     December 31,
             ASSETS                               1994             1993   

<S>                                           <C>              <C>
Current Assets:
 Cash and cash equivalents, including 
  restricted cash and cash equivalents of 
  $118,732 and $102,439, respectively . . . . $  396,298       $  721,038 
 Accounts receivable, net of allowance for
  doubtful receivables of $37,809 and
  $35,046, respectively . . . . . . . . . . .    375,621          334,828 
 Spare parts and supplies, net of allowance
  for obsolescence of $36,325 and $4,621,
  respectively. . . . . . . . . . . . . . . .    141,781          161,856 
 Prepayments and other. . . . . . . . . . . .     76,260           79,404 
  Total current assets. . . . . . . . . . . .    989,960        1,297,126 



Property and Equipment:
 Owned property and equipment:
  Flight equipment. . . . . . . . . . . . . .  1,004,337          951,881 
  Other . . . . . . . . . . . . . . . . . . .    281,605          284,362 
                                               1,285,942        1,236,243 
  Less:  Accumulated depreciation . . . . . .    207,206           69,022 
                                               1,078,736        1,167,221 

 Purchase deposits for flight equipment . . .    166,052          166,984 


 Capital leases:
  Flight equipment. . . . . . . . . . . . . .    400,037          394,236 
  Other . . . . . . . . . . . . . . . . . . .     17,045            2,142 
                                                 417,082          396,378 
  Less:  Accumulated amortization . . . . . .     69,103           23,838 
                                                 347,979          372,540 
  Total property and equipment. . . . . . . .  1,592,767        1,706,745 



Other Assets:
 Routes, gates and slots, net of accumulated
  amortization of $96,642 and $39,241,
  respectively. . . . . . . . . . . . . . . .  1,591,140        1,672,759 
 Reorganization value in excess of amounts
  allocable to identifiable assets, net of
  accumulated amortization of $31,197 and
  $13,838, respectively . . . . . . . . . . .    318,206          335,565 
 Other assets, net. . . . . . . . . . . . . .    109,109           86,301 


  Total other assets. . . . . . . . . . . . .  2,018,455        2,094,625 



    Total Assets. . . . . . . . . . . . . . . $4,601,182       $5,098,496 

</TABLE>

                                                   (continued on next page)



<TABLE>
                        CONTINENTAL AIRLINES, INC.
                        CONSOLIDATED BALANCE SHEETS
             (In thousands of dollars, except for share data)

<CAPTION>
                                                December 31,   December 31,
LIABILITIES AND STOCKHOLDERS' EQUITY                1994           1993   

<S>                                             <C>            <C>
Current Liabilities:
 Debt and capital lease obligations in default.  $  489,865     $        - 
 Current maturities of long-term debt . . . . .     126,186        176,228 
 Current maturities of capital leases . . . . .      25,788         40,556 
 Accounts payable . . . . . . . . . . . . . . .     629,939        566,268 
 Air traffic liability. . . . . . . . . . . . .     584,108        590,994 
 Accrued payroll and pensions . . . . . . . . .     178,648        167,859 
 Accrued other liabilities. . . . . . . . . . .     373,273        364,204 
  Total current liabilities . . . . . . . . . .   2,407,807      1,906,109 

Long-Term Debt. . . . . . . . . . . . . . . . .   1,038,165      1,369,885 

Capital Leases. . . . . . . . . . . . . . . . .     164,349        405,387 

Deferred Credits and Other Long-Term 
 Liabilities:
  Deferred income taxes . . . . . . . . . . . .      28,100         50,767 
  Deferred credit - operating leases. . . . . .     137,606        288,556 
  Accruals for aircraft retirements and
    excess facilities . . . . . . . . . . . . .     391,947              - 
  Other . . . . . . . . . . . . . . . . . . . .     251,118        288,395 
   Total deferred credits and other
    long-term liabilities . . . . . . . . . . .     808,771        627,718 

Commitments and Contingencies

Minority Interest . . . . . . . . . . . . . . .      25,800         21,935 

Redeemable Preferred Stock (aggregate 
 redemption value - $55,966 and $50,497,
 respectively). . . . . . . . . . . . . . . . .      52,606         46,916 

Common Stockholders' Equity:
  Class A common stock - $.01 par, 50,000,000
   shares authorized; 6,301,056 shares and
   6,013,216 shares issued and outstanding at
   December 31, 1994 and 1993, respectively . .          63             60 
  Class B common stock - $.01 par, 100,000,000
   shares authorized; 20,403,512 shares and
   19,509,352 shares issued at December 31,
   1994 and 1993, respectively. . . . . . . . .         204            195 
  Additional paid-in capital. . . . . . . . . .     778,382        764,274 
  Accumulated deficit . . . . . . . . . . . . .    (651,891)       (38,549)
  Unearned portion of restricted stock issued
   for future service . . . . . . . . . . . . .     (13,872)             - 
  Additional minimum pension liability. . . . .      (6,549)        (5,434)
  Unrealized loss on marketable equity
   securities . . . . . . . . . . . . . . . . .      (2,218)             - 
  Treasury stock - 30,000 shares in 1994. . . .        (435)             - 
   Total common stockholders' equity. . . . . .     103,684        720,546 
    Total Liabilities and 
     Stockholders' Equity . . . . . . . . . . .  $4,601,182     $5,098,496 
</TABLE>

The accompanying Notes to Consolidated Financial Statements are an integral
part of these statements.

Item 8.  Note 4.  Summary of Significant Accounting Policies.  Earnings
         (Loss) per Share is amended and restated in its entirety as
         follows:

NOTE 4 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(l)  Earnings (Loss) per Share -

     Earnings (loss) per common share computations are based upon earnings
     (loss) applicable to common shares and the average number of shares of
     common stock and dilutive common stock equivalents (stock options,
     warrants and restricted stock) outstanding.  The number of shares used
     in the computation for the year ended December 31, 1994 and the period
     April 28, 1993 through December 31, 1993 was 26,053,527 and
     18,022,918, respectively.  Preferred stock dividend requirements
     (including additional dividends on unpaid dividends) and accretion to
     redemption value on preferred stock increased the net loss for this
     computation by approximately $5.7 million and $3.5 million for the
     year ended December 31, 1994 and for the period April 28, 1993 through
     December 31, 1993, respectively.  On the Effective Date, all of the
     outstanding common and preferred stock of Holdings was cancelled. 
     Information regarding the earnings (loss) per share computation
     relating to the pre-reorganization stock is not comparable with data
     provided for Class A and Class B and is therefore not included.

Item 14. (b)   Schedule I.  Condensed Balance Sheet is amended and restated
               in its entirety as follows:


<TABLE>
                        CONTINENTAL AIRLINES, INC.
                           (Parent Company Only)
        SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT
                      CONDENSED BALANCE SHEET (a)(b)
             (In thousands of dollars, except for share data)

<CAPTION>
                                                 December 31,  December 31,
             ASSETS                                  1994          1993   

<S>                                              <C>           <C>
Current Assets:
 Cash and cash equivalents, including 
  restricted cash and cash equivalents of 
  $118,732 and $102,439, respectively . . . . .  $  325,728    $  680,962 
 Accounts receivable, net . . . . . . . . . . .     281,734       309,455 
 Accounts receivable from subsidiaries, net . .      64,447             - 
 Notes receivable from subsidiaries . . . . . .      97,825        46,221 
 Spare parts and supplies, net. . . . . . . . .     119,796       136,522 
 Prepayments and other. . . . . . . . . . . . .      70,369        70,707 
  Total current assets. . . . . . . . . . . . .     959,899     1,243,867 

Property and Equipment:
 Owned property and equipment, net of 
  accumulated depreciation of $180,281 and 
  $62,297, respectively . . . . . . . . . . . .   1,017,317     1,111,110 

 Purchase deposits for flight equipment . . . .     166,052       166,984 

 Capital leases, net of accumulated
   amortization of $58,169 and $19,291,
   respectively . . . . . . . . . . . . . . . .     311,299       329,473 

   Total property and equipment . . . . . . . .   1,494,668     1,607,567 

Other Assets:
 Routes, gates and slots, net of accumulated 
  amortization of $73,041 and $29,730,
  respectively. . . . . . . . . . . . . . . . .   1,051,141     1,118,670 
 Reorganization value in excess of amounts 
  allocable to identifiable assets, net of 
  accumulated amortization of $22,999 and 
  $10,585, respectively . . . . . . . . . . . .     210,659       223,073 
 Investment in subsidiaries . . . . . . . . . .     257,502       272,303 
 Notes receivable from subsidiaries . . . . . .           -        56,875 
 Other assets, net. . . . . . . . . . . . . . .      66,467        43,935 
   Total other assets . . . . . . . . . . . . .   1,585,769     1,714,856 

     Total Assets . . . . . . . . . . . . . . .  $4,040,336    $4,566,290 

</TABLE>




These Statements should be read in conjunction with the Consolidated
Financial Statements and Notes thereto and Notes to Schedule I.



<TABLE>
                        CONTINENTAL AIRLINES, INC.
                           (Parent Company Only)
        SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT
                      CONDENSED BALANCE SHEET (a)(b)
             (In thousands of dollars, except for share data)

<CAPTION>
                                                 December 31,  December 31,
  LIABILITIES AND STOCKHOLDERS' EQUITY               1994          1993   

<S>                                              <C>           <C>
Current Liabilities:
 Debt and capital lease obligations 
  in default. . . . . . . . . . . . . . . . . .  $  489,865    $        - 
 Current maturities of long-term debt (c) . . .     108,620       160,250 
 Current maturities of capital leases . . . . .      18,278        33,620 
 Accounts payable . . . . . . . . . . . . . . .     548,258       472,762 
 Accounts payable to subsidiaries, net. . . . .           -        10,795 
 Air traffic liability. . . . . . . . . . . . .     551,810       590,994 
 Accrued other liabilities. . . . . . . . . . .     492,885       459,602 
  Total current liabilities . . . . . . . . . .   2,209,716     1,728,023 

Long-Term Debt (c). . . . . . . . . . . . . . .     859,773     1,178,989 

Capital Leases. . . . . . . . . . . . . . . . .     119,798       353,606 

Deferred Credits and Other Long-Term 
 Liabilities. . . . . . . . . . . . . . . . . .     694,759       538,210 

Commitments and Contingencies (d)

Redeemable Preferred Stock (aggregate 
 liquidation value - $55,966 and $50,497,
  respectively) (e) . . . . . . . . . . . . . .      52,606        46,916 

Common Stockholders' Equity:
  Class A common stock - $.01 par, 50,000,000 
   shares authorized; 6,301,056 shares and 
   6,013,216 shares issued and outstanding 
   at December 31, 1994 and 1993, 
   respectively (e) . . . . . . . . . . . . . .          63            60 
  Class B common stock - $.01 par, 
   100,000,000 shares authorized; 
   20,403,512 shares and 19,509,352 shares 
   issued at December 31, 1994 and 1993,
   respectively (e) . . . . . . . . . . . . . .         204           195 
  Additional paid-in capital. . . . . . . . . .     778,382       764,274 
  Accumulated deficit . . . . . . . . . . . . .    (651,891)      (38,549)
  Unearned portion of restricted stock 
   issued for future services . . . . . . . . .     (13,872)            - 
  Additional minimum pension liability. . . . .      (6,549)       (5,434)
  Unrealized loss on marketable equity 
   securities . . . . . . . . . . . . . . . . .      (2,218)            - 
  Treasury stock - 30,000 shares in 1994. . . .        (435)            - 
   Total common stockholders' equity. . . . . .     103,684       720,546 
     Total Liabilities and Stockholders' Equity  $4,040,336    $4,566,290 
</TABLE>

These Statements should be read in conjunction with the Consolidated
Financial Statements and Notes thereto and Notes to Schedule I.



                                SIGNATURES


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

                                       CONTINENTAL AIRLINES, INC.          

                                                 (Registrant)





Date:  May 12, 1995                by: /s/ Jeffery A. Smisek               

                                       Jeffery A. Smisek
                                       Senior Vice President,
                                       General Counsel and Secretary
                                       (On behalf of Registrant)