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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): November 1, 2004

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 November 1, 2004, we issued a press release announcing our October performance and our estimated consolidated breakeven load factor for November. The press release is filed herewith as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

    1. Exhibits
 

99.1

Press Release for October 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.

 

 

November 1, 2004

By   /s/ Jennifer L. Vogel
 

        Jennifer L. Vogel
 

        Senior Vice President, General Counsel
  and Secretary
   

 

 

EXHIBIT INDEX

99.1

Press Release for October Performance

 

 
News Release

EXHIBIT 99.1

News Release

Contact: Corporate Communications

Houston: 713.324.5080

Email: corpcomm@coair.com

News archive: continental.com/news/ Address: P.O. Box 4607, Houston, TX 77210-4607

CONTINENTAL AIRLINES REPORTS OCTOBER 2004

OPERATIONAL PERFORMANCE

HOUSTON, Nov. 1, 2004 - Continental Airlines (NYSE: CAL) today reported an October consolidated (mainline plus regional) load factor of 78.3 percent, 4.7 points above last year's October consolidated load factor, and a mainline load factor of 78.9 percent, 4.8 points above last year's October mainline load factor. The carrier reported a domestic mainline load factor of 79.0 percent, 4.6 points above October 2003, and an international mainline load factor of 78.6 percent, 5.1 points above October 2003. All four were operational records for October.

During the month, Continental recorded a U.S. Department of Transportation on-time arrival rate of 87.7 percent and a mainline completion factor of 99.9 percent.

In October 2004, Continental flew 6.2 billion consolidated revenue passenger miles (RPMs) and 7.9 billion consolidated available seat miles (ASMs), resulting in a traffic increase of 14.5 percent and a capacity increase of 7.7 percent as compared to October 2003. In October 2004, Continental flew 5.5 billion mainline RPMs and 7.0 billion mainline ASMs, resulting in a mainline traffic increase of 13.7 percent and a mainline capacity increase of 6.7 percent as compared to October 2003. Domestic mainline traffic was 3.2 billion RPMs in October 2004, up 6.7 percent from October 2003, and domestic mainline capacity was 4.0 billion ASMs, up 0.5 percent from October 2003.

For the month of October 2004, consolidated passenger revenue per available seat mile (RASM) is estimated to have increased between 0.0 and 1.0 percent compared to October 2003, while mainline RASM is estimated to have increased between 0.5 and 1.5 percent. For September 2004, consolidated RASM decreased 1.2 percent and mainline RASM decreased 1.0 percent compared to September 2003.

Continental's regional operations (Continental Express) set a record October load factor of 74.3 percent, 4.0 points above last year's October load factor. Regional RPMs were 671.6 million and regional ASMs were 903.9 million in October 2004, resulting in a traffic increase of 21.8 percent and a capacity increase of 15.2 percent versus October 2003.

Continental Airlines is the world's sixth-largest airline with more than 3,000 daily departures throughout the Americas, Europe and Asia. Continental serves 151 domestic and 120 international destinations - more than any other airline in the world - and nearly 400 additional points are served via SkyTeam alliance airlines. With 41,000 employees, the airline has hubs serving New York, Houston, Cleveland and Guam, and carries approximately 51 million passengers per year. In 2004, Continental has earned awards and critical acclaim for both its operation and its corporate culture. FORTUNE ranks Continental one of the 100 Best Companies to Work For in America, an honor it has earned for six consecutive years, and also ranks Continental as the top airline in its Most Admired Global Companies in 2004. The carrier won major awards at the 2004 OAG Airline of the Year Awards including "Airline of the Year," "Best Airline Based in North America" and "Best Executive/Business Class." For more company informat ion, 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.

 

 

PRELIMINARY TRAFFIC RESULTS

OCTOBER

  

2004   

2003   

Change   

REVENUE PASSENGER MILES (000)

    
 

Domestic

3,159,437

2,960,476

6.7  Percent
         
 

International

2,358,444

1,892,945

24.6  Percent
 

Transatlantic

1,313,105

973,026

35.0  Percent 
 

Latin America

550,411

478,464

15.0  Percent 
 

Pacific

494,928

441,455

12.1  Percent 
         
 

Mainline

5,517,881

4,853,420

13.7  Percent
         
 

Regional

671,567

551,200

21.8  Percent
         
 

Consolidated

6,189,448

5,404,620

14.5  Percent
         

AVAILABLE SEAT MILES (000)

    
 

Domestic

3,997,202

3,977,213

0.5  Percent
         
 

International

2,999,107

2,576,802

16.4  Percent
 

Transatlantic

1,574,299

1,240,375

26.9  Percent 
 

Latin America

797,735

740,310

7.8  Percent 
 

Pacific

627,073

596,117

5.2  Percent 
         
 

Mainline

6,996,309

6,554,015

6.7  Percent
         
 

Regional

903,887

784,348

15.2  Percent
         
 

Consolidated

7,900,196

7,338,363

7.7  Percent
         

PASSENGER LOAD FACTOR

    
 

Domestic

79.0 Percent

74.4 Percent

4.6  Points
         
 

International

78.6 Percent

73.5 Percent

5.1  Points
 

Transatlantic

83.4 Percent 

78.4 Percent 

5.0  Points 
 

Latin America

69.0 Percent 

64.6 Percent 

4.4  Points 
 

Pacific

78.9 Percent 

74.1 Percent 

4.8  Points 
         
 

Mainline

78.9 Percent

74.1 Percent

4.8  Points
         
 

Regional

74.3 Percent

70.3 Percent

4.0  Points
         
 

Consolidated

78.3 Percent

73.6 Percent

4.7  Points
         

ONBOARD PASSENGERS

    
 

Mainline

3,525,877

3,271,717

7.8  Points
         
 

Regional

1,251,742

1,061,051

18.0  Points
         
 

Consolidated

4,777,619

4,332,768

10.3  Points
         

CARGO REVENUE TON MILES (000)

    
 

Total

95,903

83,463

14.9  Percent

 

YEAR-TO-DATE

  

2004   

2003   

Change   

REVENUE PASSENGER MILES (000)

    
 

Domestic

31,625,467

30,132,583

5.0  Percent
         
 

International

23,359,009

19,104,508

22.3  Percent
 

Transatlantic

11,329,234

8,873,756

27.7  Percent 
 

Latin America

7,157,639

6,378,134

12.2  Percent 
 

Pacific

4,872,136

3,852,618

26.5  Percent 
         
 

Mainline

54,984,476

49,237,091

11.7  Percent
         
 

Regional

6,118,898

4,690,460

30.5  Percent
         
 

Consolidated

61,103,374

53,927,551

13.3  Percent
         

AVAILABLE SEAT MILES (000)

    
 

Domestic

40,833,895

39,443,014

3.5  Percent
         
 

International

29,969,902

25,907,794

15.7  Percent
 

Transatlantic

14,045,097

11,603,501

21.0  Percent 
 

Latin America

9,701,397

8,676,529

11.8  Percent 
 

Pacific

6,223,408

5,627,764

10.6  Percent 
         
 

Mainline

70,803,797

65,350,808

8.3  Percent
         
 

Regional

8,603,453

6,892,996

24.8  Percent
         
 

Consolidated

79,407,250

72,243,804

9.9  Percent
         

PASSENGER LOAD FACTOR

    
 

Domestic

77.4 Percent

76.4 Percent

1.0  Points
         
 

International

77.9 Percent

73.7 Percent

4.2  Points
 

Transatlantic

80.7 Percent 

76.5 Percent 

4.2  Points 
 

Latin America

73.8 Percent 

73.5 Percent 

0.3  Points 
 

Pacific

78.3 Percent 

68.5 Percent 

9.8  Points 
         
 

Mainline

77.7 Percent

75.3 Percent

2.4  Points
         
 

Regional

71.7 Percent

68.0 Percent

3.1  Points
         
 

Consolidated

76.9 Percent

74.6 Percent

2.3  Points
         

ONBOARD PASSENGERS

    
 

Mainline

35,645,257

33,832,167

5.4  Points
         
 

Regional

11,362,107

9,428,968

20.5  Points
         
 

Consolidated

47,007,364

43,261,135

8.7  Points
         

CARGO REVENUE TON MILES (000)

    
 

Total

845,459

763,007

10.8  Percent

 

 

PRELIMINARY OPERATIONAL AND FINANCIAL RESULTS

OCTOBER

  

2004 

2003 

Change  

On-Time Performance1

87.7%

88.2%

(0.5) Points

Completion Factor2

99.9%

99.8%

0.1  Points
         

YEAR-TO-DATE

  

2004 

2003 

Change  

On-Time Performance1

79.3%

82.9%

(3.6) Points

Completion Factor2

99.6%

99.4%

0.2  Points
         

September 2004 consolidated breakeven load factor3,4

86.3  Percent

October 2004 estimated year-over-year consolidated

  RASM change


0.0-1.0 Percent

October 2004 estimated year-over-year mainline RASM

  Change

0.5-1.5 Percent

October 2004 estimated average price per gallon of fuel,

  including fuel taxes


1.35 Dollars

October 2004 estimated consolidated breakeven load factor3

86 Percent

October 2004 actual consolidated load factor5

78.3 Percent

October 2004 estimated consolidated breakeven load factor3

85 Percent
 

YEAR-OVER-YEAR CONSOLIDATED RASM

    
 

2003 vs. 2002

2003 vs. 2001

  

September

7.2 Percent

21.6 Percent

  

October

6.7 Percent

17.7 Percent

  

November

7.0 Percent

6.3 Percent

  

December

2.3 Percent

14.0 Percent

  
 

2004 vs. 2003

2004 vs. 2002

  

January

1.7 Percent

6.1 Percent

  

February

(1.0) Percent

(0.3) Percent

  

March

6.1 Percent

(4.2) Percent

  

April

3.8 Percent

4.8 Percent

  

May

(2.0) Percent

1.5 Percent

  

June

1.9 Percent

4.1 Percent

  

July

2.9 Percent

9.8 Percent

  

August

(0.5) Percent

5.0 Percent

  

September

(1.2) Percent

6.0 Percent

  

October (estimated)

0.0-1.0 Percent

6.0-7.0 Percent

  
       

 

 

YEAR-OVER-YEAR MAINLINE RASM

    
 

2003 vs. 2002

2003 vs. 2001

  

September

5.3 Percent

16.7 Percent

  

October

4.4 Percent

14.1 Percent

  

November

5.5 Percent

3.7 Percent

  

December

1.7 Percent

12.0 Percent

  
 

2004 vs. 2003

2004 vs. 2002

  

January

0.9 Percent

4.5 Percent

  

February

(2.5) Percent

(2.9) Percent

  

March

4.9 Percent

(7.4) Percent

  

April

3.1 Percent

2.1 Percent

  

May

(3.0) Percent

(1.1) Percent

  

June

1.3 Percent

1.6 Percent

  

July

2.8 Percent

7.8 Percent

  

August

(1.1) Percent

3.2 Percent

  

September

(1.0) Percent

4.2 Percent

  

October (estimated)

0.5-1.5 Percent

5.0-6.0 Percent

  

1 Department of Transportation Arrivals within 14 minutes

2 Mainline Mileage Completion Percentage

3 Consolidated load factor (including Continental Airlines and Continental Express) needed to break even on a consolidated net income

basis. 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 Income related to net fair market value adjustment of trading securities net of charges related to MD-80 aircraft retirements and other

items reduced the breakeven load factor by 1.4 percentage point.

5 Includes Continental Airlines and Continental Express.

 

 

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