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SECURITIES AND EXCHANGE COMMISSION |
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Washington, D.C. 20549 |
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FORM 8-K |
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CURRENT REPORT |
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Pursuant to Section 13 or 15(d) of the |
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Securities Exchange Act of 1934 |
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Date of Report (Date of earliest event reported): |
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May 3, 2004 |
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CONTINENTAL AIRLINES, INC. |
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(Exact name of registrant as specified in its charter) |
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Delaware |
1-10323 |
74-2099724 |
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(State or other jurisdiction |
(Commission File Number) |
(IRS Employer |
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of incorporation) |
Identification No.) |
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1600 Smith Street, Dept. HQSEO, Houston, Texas |
77002 |
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(Address of principal executive offices) |
(Zip Code) |
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(713) 324-2950 |
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(Registrant's telephone number, including area code) |
Item 5. Other Events.
On May 3, 2004, we issued a press release announcing our April performance and our estimated consolidated breakeven load factor for May. The press release is filed herewith as Exhibit 99.1 and is incorporated herein by reference.
Item 7. Financial Statements and Exhibits.
- Exhibits
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99.1 |
Press Release for April performance |
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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.
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CONTINENTAL AIRLINES, INC. |
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May 3, 2004 |
By /s/ Jennifer L. Vogel |
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Jennifer L. Vogel |
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Senior Vice President, General Counsel |
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EXHIBIT INDEX |
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99.1 |
Press Release for April performance |
EXHIBIT 99.1
News Release
Contact:
Corporate CommunicationsHouston: 713.324.5080
Email: corpcomm@coair.com
News archive: continental.com/news/ Address: P.O. Box 4607, Houston, TX 77210-4607
CONTINENTAL AIRLINES REPORTS APRIL 2004
OPERATIONAL PERFORMANCE
HOUSTON, May 3, 2004 - Continental Airlines (NYSE: CAL) today reported an April systemwide mainline load factor of 77.0 percent, 4.6 points above last year's April load factor. In addition, the airline had an April domestic mainline load factor of 78.0 percent, 2.5 points above April 2003, and an international mainline load factor of 75.6 percent, 8.1 points above April 2003. All three were operational records for April.
During the month, Continental recorded a U.S. Department of Transportation on-time arrival rate of 78.6 percent and a systemwide mainline completion factor of 99.9 percent.
In April 2004, Continental flew 5.4 billion mainline revenue passenger miles (RPMs) and 7.0 billion mainline available seat miles (ASMs) systemwide, resulting in a traffic increase of 20.7 percent and a capacity increase of 13.4 percent as compared to April 2003. Domestic mainline traffic was 3.2 billion RPMs in April 2004, up 12.4 percent from April 2003, and domestic mainline capacity was 4.1 billion ASMs, up 8.7 percent from April 2003.
Systemwide April 2004 mainline passenger revenue per available seat mile (RASM) is estimated to have increased between 2.5 and 3.5 percent compared to April 2003. For March 2004, RASM increased 4.9 percent as compared to March 2003.
Continental's regional operations (Continental Express) set a record April load factor of 70.7 percent, 3.8 points above last year's April load factor. Regional
RPMs were 606.4 million and regional ASMs were 857.1 million in April 2004, resulting in a traffic increase of 40.8 percent and a capacity increase of 33.1 percent versus April 2003.
Continental recorded a special charge of $10 million ($15 million before income taxes) associated with the permanent grounding of two MD-80 aircraft during April 2004.
Continental Airlines is the world's sixth-largest airline with more than 2,800 daily departures throughout the Americas, Europe and Asia. Continental serves 149 domestic and 117 international destinations - more than any other airline in the world - and nearly 200 additional points are served via codeshare partner airlines. With 41,000 mainline employees, the airline has hubs serving New York, Houston, Cleveland and Guam, and carries approximately 51 million passengers per year. FORTUNE ranks Continental one of the 100 Best Companies to Work For in America, an honor it has earned for six consecutive years. FORTUNE also ranks Continental as the top airline in its Most Admired Global Companies in 2004. 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 2003 10-K and its other securities filings, which identify important matters such as terrorist attacks, domestic and international economic conditions, the significant cost of aircraft fuel, labor costs, competition, regulatory matters and industry conditions, including the demand for air travel, the airline pricing environment and industry capacity decisions. 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.
(more)
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PRELIMINARY TRAFFIC RESULTS
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APRIL |
2004 |
2003 |
Change |
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REVENUE PASSENGER MILES (000) |
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Domestic |
3,218,031 |
2,863,111 |
12.4 Percent |
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International |
2,171,420 |
1,601,053 |
35.6 Percent |
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Transatlantic |
1,013,118 |
720,468 |
40.6 Percent |
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Latin America |
720,148 |
618,421 |
16.4 Percent |
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Pacific |
438,154 |
262,163 |
67.1 Percent |
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Mainline |
5,389,452 |
4,464,165 |
20.7 Percent |
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Regional |
606,367 |
430,508 |
40.8 Percent |
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AVAILABLE SEAT MILES (000) |
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Domestic |
4,123,551 |
3,793,620 |
8.7 Percent |
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International |
2,871,601 |
2,373,327 |
21.0 Percent |
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Transatlantic |
1,254,636 |
1,002,239 |
25.2 Percent |
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Latin America |
1,009,621 |
900,503 |
12.1 Percent |
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Pacific |
607,345 |
470,585 |
29.1 Percent |
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Mainline |
6,995,153 |
6,166,947 |
13.4 Percent |
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Regional |
857,093 |
643,806 |
33.1 Percent |
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PASSENGER LOAD FACTOR |
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Domestic |
78.0 Percent |
75.5 Percent |
2.5 Points |
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International |
75.6 Percent |
67.5 Percent |
8.1 Points |
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Transatlantic |
80.8 Percent |
71.9 Percent |
8.9 Points |
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Latin America |
71.3 Percent |
68.7 Percent |
2.6 Points |
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Pacific |
72.1 Percent |
55.7 Percent |
16.4 Points |
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Mainline |
77.0 Percent |
72.4 Percent |
4.6 Points |
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Regional |
70.7 Percent |
66.9 Percent |
3.8 Points |
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CARGO REVENUE TON MILES (000) |
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Total |
85,386 |
74,548 |
14.5 Percent |
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YEAR-TO-DATE |
2004 |
2003 |
Change |
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REVENUE PASSENGER MILES (000) |
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Domestic |
11,876,362 |
10,924,759 |
8.7 Percent |
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International |
8,226,249 |
6,814,437 |
20.7 Percent |
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Transatlantic |
3,484,378 |
2,828,788 |
23.2 Percent |
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Latin America |
2,900,425 |
2,607,969 |
11.2 Percent |
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Pacific |
1,841,446 |
1,377,680 |
33.7 Percent |
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Mainline |
20,102,611 |
17,739,196 |
13.3 Percent |
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Regional |
2,147,891 |
1,508,896 |
42.3 Percent |
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AVAILABLE SEAT MILES (000) |
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Domestic |
16,186,946 |
15,133,894 |
7.0 Percent |
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International |
11,082,465 |
10,111,610 |
9.6 Percent |
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Transatlantic |
4,608,142 |
4,233,724 |
8.8 Percent |
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Latin America |
4,012,790 |
3,653,687 |
9.8 Percent |
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Pacific |
2,461,533 |
2,224,199 |
10.7 Percent |
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Mainline |
27,269,411 |
25,245,504 |
8.0 Percent |
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Regional |
3,258,104 |
2,411,113 |
35.1 Percent |
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PASSENGER LOAD FACTOR |
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Domestic |
73.4 Percent |
72.2 Percent |
1.2 Points |
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International |
74.2 Percent |
67.4 Percent |
6.8 Points |
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Transatlantic |
75.6 Percent |
66.8 Percent |
8.8 Points |
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Latin America |
72.3 Percent |
71.4 Percent |
0.9 Points |
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Pacific |
74.8 Percent |
61.9 Percent |
12.9 Points |
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Mainline |
73.7 Percent |
70.3 Percent |
3.4 Points |
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Regional |
66.0 Percent |
62.6 Percent |
3.3 Points |
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CARGO REVENUE TON MILES (000) |
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Total |
335,831 |
308,122 |
9.0 Percent |
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PRELIMINARY OPERATIONAL AND FINANCIAL RESULTS
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APRIL |
2004 |
2003 |
Change |
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On-Time Performance1 |
78.6% |
88.4% |
(9.8) Points |
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Completion Factor2 |
99.9% |
99.7% |
0.2 Points |
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YEAR-TO-DATE |
2004 |
2003 |
Change |
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On-Time Performance1 |
79.5% |
83.6% |
(4.1) Points |
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Completion Factor2 |
99.6% |
99.0% |
0.6 Points |
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March 2004 consolidated breakeven load factor3,4 |
76.2 Percent |
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April 2004 estimated year-over-year RASM change |
2.5-3.5 Percent |
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April 2004 estimated average price per gallon of fuel,including fuel taxes |
106 Cents |
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April 2004 estimated consolidated breakeven load factor3,5 |
80 Percent |
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April 2004 actual consolidated load factor6 |
76.4 Percent |
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May 2004 estimated consolidated breakeven load factor3,7 |
77 Percent |
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YEAR-OVER-YEAR SYSTEMWIDE RASM |
2003 vs. 2002 |
2003 vs. 2001 |
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March |
(11.7) Percent |
(17.4) Percent |
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April |
(1.0) Percent |
(11.3) Percent |
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May |
2.0 Percent |
(4.3) Percent |
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June |
0.3 Percent |
(5.2) Percent |
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July |
4.9 Percent |
0.7 Percent |
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August |
4.4 Percent |
1.5 Percent |
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September |
5.3 Percent |
16.7 Percent |
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October |
4.4 Percent |
14.1 Percent |
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November |
5.5 Percent |
3.7 Percent |
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December |
1.7 Percent |
12.0 Percent |
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2004 vs. 2003 |
2004 vs. 2002 |
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January |
0.9 Percent |
4.5 Percent |
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February |
(2.5) Percent |
(2.9) Percent |
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March |
4.9 Percent |
(7.4) Percent |
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April (estimated) |
2.5-3.5 Percent |
1.5-2.5 Percent |
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1
Department of Transportation Arrivals within 14 minutes2
System Mainline Mileage Completion Percentage3
Consolidated load factor (including Continental Airlines and Continental Express) needed to break even on a consolidated net incomebasis. Actual consolidated breakeven load factor may vary significantly from estimates depending on actual passenger revenue yields,
fuel price and other factors. Month-to-date consolidated load factor information can be found on Continental's website at
continental.com in the Investor Relations-Financial/Traffic Releases section.
4
Charge related to MD-80 aircraft retirements accounts for 1.5 percentage points.5
Charge related to MD-80 aircraft retirements accounts for 2 percentage points.6
Includes Continental Airlines and Continental Express7
Charge related to MD-80 aircraft retirements accounts for 1 percentage point.###