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):  
                          July 30, 1998



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



   Delaware                0-09781                 74-2099724
(State or other          (Commission             (IRS Employer
jurisdiction of          File Number)          Identification No.)
incorporation)



2929 Allen Parkway, Suite 2010, Houston, Texas            77019
  (Address of principal executive offices)             (Zip Code)


                         (713) 834-2950
      (Registrant's telephone number, including area code)

<PAGE>

Item 7.Financial Statements and Exhibits.

         Effective December 31, 1997, Continental Airlines, Inc.
         (the "Company") adopted Statement of Financial Accounting
         Standards (SFAS) No. 128, "Earnings Per Share", which
         replaced the calculation of primary earnings per share and
         fully diluted earnings per share with basic earnings per
         share and diluted earnings per share.  In accordance with

         Item 601(c) (2) of Regulation S-K, the Company is filing
         this Current Report on Form 8-K to reflect compliance with
         FAS 128.

         (c)  Exhibits

              27.1  Restated Financial Data Schedule for the
                    quarterly periods ended March 31, 1995, June
                    30, 1995, September 30,1995 and the fiscal
                    year ended December 31, 1995.  Submitted as
                    restated Exhibit 27 on Form 10-Q to the
                    quarterly periods ended March 31, 1995, June
                    30, 1995, September 30, 1995, and to the Year
                    Ended Report on Form 10-K for the fiscal year
                    ended December 31, 1995.

              27.2  Restated Financial Data Schedule for the
                    quarterly periods ended March 31, 1996, June
                    30, 1996, September 30,1996 and the fiscal
                    year ended December 31, 1996.  Submitted as
                    restated Exhibit 27 on Form 10-Q to the
                    quarterly periods ended March 31, 1996, June
                    30, 1996, September 30, 1996, and to the Year
                    Ended Report on Form 10-K for the fiscal year
                    ended December 31, 1996.

              27.3  Restated Financial Data Schedule for the
                    quarterly periods ended March 31, 1997, June
                    30, 1997, and September 30,1997.  Submitted as
                    restated Exhibit 27 on Form 10-Q to the
                    quarterly periods ended March 31, 1997, June
                    30, 1997 and September 30, 1997.


<PAGE>

                           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.



                                   By /s/ Jeffery A. Smisek       
                                      Jeffery A. Smisek
                                      Executive Vice President 
                                      and General Counsel


July 30, 1998
 
<PAGE>

                        EXHIBIT INDEX


27.1  Restated Financial Data Schedule for the quarterly periods
      ended March 31, 1995, June 30, 1995, September 30,1995 and
      the fiscal year ended December 31, 1995.  Submitted as
      restated Exhibit 27 on Form 10-Q to the quarterly periods
      ended March 31, 1995, June 30, 1995, September 30, 1995, and
      to the Year Ended Report on Form 10-K for the fiscal year
      ended December 31, 1995.

27.2  Restated Financial Data Schedule for the quarterly periods
      ended March 31, 1996, June 30, 1996, September 30,1996 and
      the fiscal year ended December 31, 1996.  Submitted as
      restated Exhibit 27 on Form 10-Q to the quarterly periods
      ended March 31, 1996, June 30, 1996, September 30, 1996, and
      to the Year Ended Report on Form 10-K for the fiscal year
      ended December 31, 1996.

27.3  Restated Financial Data Schedule for the quarterly periods
      ended March 31, 1997, June 30, 1997, and September 30,1997. 
      Submitted as restated Exhibit 27 on Form 10-Q to the
      quarterly periods ended March 31, 1997, June 30, 1997 and
      September 30, 1997.






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<PERIOD-END>                               MAR-31-1995             JUN-30-1995             SEP-30-1995             DEC-31-1995
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<CGS>                                                0                       0                       0                       0
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<LOSS-PROVISION>                                     0                       0                       0                       0
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<DEPRECIATION>                                     441                     474                     503                     522
<TOTAL-ASSETS>                                   4,746                   4,950                   4,983                   5,206
<CURRENT-LIABILITIES>                            2,040                   2,108                   2,129                   2,104
<BONDS>                                              0                       0                       0                       0
<PREFERRED-MANDATORY>                               42                      43                      45                      46
<PREFERRED>                                          0                       0                       0                       0
<COMMON>                                             0                       0                       0                       0
<OTHER-SE>                                         390                     504                     517                     581
<TOTAL-LIABILITY-AND-EQUITY>                     4,746                   4,950                   4,983                   5,206
<SALES>                                          1,489                   3,128                   4,799                   6,360
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<CGS>                                                0                       0                       0                       0
<TOTAL-COSTS>                                        0                       0                       0                       0
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<LOSS-PROVISION>                                     0                       0                       0                       0
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<NET-INCOME>                                        88                     255                     272                     319
<EPS-PRIMARY>                                     1.60                    4.65                    4.94                    5.75
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<RECEIVABLES>                                      407                     439                     469
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<PP&E>                                           1,754                   1,885                   2,104
<DEPRECIATION>                                     547                     540                     575
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<CGS>                                                0                       0                       0
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<LOSS-PROVISION>                                     0                       0                       0
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<INCOME-PRETAX>                                    124                     332                     518
<INCOME-TAX>                                        46                     123                     192
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<NET-INCOME>                                        74                     202                     312
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