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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): July 3, 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 July 3, 2006, we issued a press release announcing our June 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 June 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.

 

 

July 3, 2006

By   /s/ Chris Kenny

       Chris Kenny

Vice President & Controller

 

 

 

 

 

 

 
 

        
 

       
     

 

 

EXHIBIT INDEX

99.1

Press Release for June 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 JUNE 2006

OPERATIONAL PERFORMANCE

HOUSTON, July 3, 2006 - Continental Airlines (NYSE: CAL) today reported a June consolidated (mainline plus regional) load factor of 84.5 percent, 2.3 points above last year's June consolidated load factor, and a mainline load factor of 84.8 percent, 1.9 points above the June 2005 mainline load factor. The carrier reported a domestic mainline load factor of 86.7 percent, 2.0 points above June 2005, and an international mainline load factor of 82.7 percent, 1.9 points above June 2005. All four were records for June. The carrier also reported a record daily load factor of 94.0 percent on June 30, 2006, for Continental operations (which excludes regional and Continental Micronesia).

During the month, Continental recorded a U.S. Department of Transportation on-time arrival rate of 67.8 percent. Continental's on-time performance was adversely affected by inclement weather. The carrier enacted severe weather plans for 25 occurrences in June, primarily in Newark and Houston. Despite weather challenges, the carrier reported a mainline completion factor of 99.7 percent.

In June 2006, Continental flew 8.2 billion consolidated revenue passenger miles (RPMs) and 9.7 billion consolidated available seat miles (ASMs), resulting in a traffic increase of 13.7 percent and a capacity increase of 10.6 percent as compared to June 2005. In June 2006, Continental flew 7.3 billion mainline RPMs and 8.6 billion mainline ASMs, resulting in a mainline traffic increase of 13.2 percent and a mainline capacity increase of 10.7 percent as compared to June 2005. Domestic mainline traffic was 3.9 billion RPMs in June 2006, up 9.0 percent from June 2005, and domestic mainline capacity was 4.5 billion ASMs, up 6.5 percent from June 2005.

For June 2006, consolidated passenger revenue per available seat mile (RASM) is estimated to have increased between 10.5 and 11.5 percent compared to June 2005, while mainline passenger RASM is estimated to have increased between 9.0 and 10.0 percent compared to June 2005.  For May 2006, consolidated passenger RASM increased 9.3 percent compared to May 2005, while mainline passenger RASM increased 7.6 percent from May 2005.

Continental ended the second quarter with unrestricted cash and short-term investments of approximately $2.47 billion. June 2006 sales at continental.com increased 45.0 percent over June 2005.

Continental's regional operations had a record June load factor of 82.2 percent, 5.5 points above last year's June load factor. Regional RPMs were 951.1 million and regional ASMs were 1,156.4 million in June 2006, resulting in a traffic increase of 18.0 percent and a capacity increase of 10.0 percent versus June 2005.

Continental Airlines, together with Continental Express and Continental Connection, has more than 3,200 daily departures throughout the Americas, Europe and Asia, serving 152 domestic and 138 international destinations. More than 400 additional points are served via SkyTeam alliance airlines.  With more than 42,000 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 ranked the highest in Customer Satisfaction Among Traditional 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 and the seasonal nature of the airline business. The company undertakes no obligat ion 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

JUNE

2006

2005

Change

REVENUE PASSENGER MILES (000)

Domestic

3,885,977

3,565,956

9.0

Percent

International

3,386,020

2,858,443

18.5

Percent

Transatlantic

1,771,360

1,481,600

19.6

Percent

Latin America

961,360

768,681

25.1

Percent

Pacific

653,300

608,162

7.4

Percent

Mainline

7,271,997

6,424,399

13.2

Percent

Regional

951,124

806,259

18.0

Percent

Consolidated

8,223,121

7,230,658

13.7

Percent

AVAILABLE SEAT MILES (000)

Domestic

4,484,491

4,208,875

6.5

Percent

International

4,092,438

3,536,226

15.7

Percent

Transatlantic

2,095,947

1,770,395

18.4

Percent

Latin America

1,195,387

1,015,910

17.7

Percent

Pacific

801,104

749,921

6.8

Percent

Mainline

8,576,929

7,745,101

10.7

Percent

Regional

1,156,418

1,051,453

10.0

Percent

Consolidated

9,733,347

8,796,554

10.6

Percent

PASSENGER LOAD FACTOR

Domestic

86.7 Percent

84.7 Percent

2.0

Points

International

82.7 Percent

80.8 Percent

1.9

Points

Transatlantic

84.5 Percent

83.7 Percent

0.8

Points

Latin America

80.4 Percent

75.7 Percent

4.7

Points

Pacific

81.6 Percent

81.1 Percent

0.5

Points

Mainline

84.8 Percent

82.9 Percent

1.9

Points

Regional

82.2 Percent

76.7 Percent

5.5

Points

Consolidated

84.5 Percent

82.2 Percent

2.3

Points

ONBOARD PASSENGERS

Mainline

4,389,157

3,984,060

10.2

Percent

Regional

1,681,582

1,448,409

16.1

Percent

Consolidated

6,070,739

5,432,469

11.7

Percent

CARGO REVENUE TON MILES (000)

Total

86,541

79,498

8.9

Percent

PRELIMINARY TRAFFIC RESULTS

YEAR-TO-DATE

2006

2005

Change

REVENUE PASSENGER MILES (000)

Domestic

21,112,037

19,337,556

9.2

Percent

International

17,536,307

14,867,590

17.9

Percent

Transatlantic

8,350,143

7,009,139

19.1

Percent

Latin America

5,500,002

4,666,360

17.9

Percent

Pacific

3,686,162

3,192,091

15.5

Percent

Mainline

38,648,344

34,205,146

13.0

Percent

Regional

5,052,161

4,198,312

20.3

Percent

Consolidated

43,700,505

38,403,458

13.8

Percent

AVAILABLE SEAT MILES (000)

Domestic

25,345,494

24,065,939

5.3

Percent

International

22,572,021

19,235,379

17.3

Percent

Transatlantic

10,726,932

8,847,184

21.2

Percent

Latin America

7,005,667

6,173,000

13.5

Percent

Pacific

4,839,422

4,215,195

14.8

Percent

Mainline

47,917,515

43,301,318

10.7

Percent

Regional

6,456,244

5,766,178

12.0

Percent

Consolidated

54,373,759

49,067,496

10.8

Percent

PASSENGER LOAD FACTOR

Domestic

83.3 Percent

80.4 Percent

2.9

Points

International

77.7 Percent

77.3 Percent

0.4

Points

Transatlantic

77.8 Percent

79.2 Percent

-1.4

Points

Latin America

78.5 Percent

75.6 Percent

2.9

Points

Pacific

76.2 Percent

75.7 Percent

0.5

Points

Mainline

80.7 Percent

79.0 Percent

1.7

Points

Regional

78.3 Percent

72.8 Percent

5.5

Points

Consolidated

80.4 Percent

78.3 Percent

2.1

Points

ONBOARD PASSENGERS

Mainline

24,230,140

22,063,875

9.8

Percent

Regional

8,956,981

7,598,354

17.9

Percent

Consolidated

33,187,121

29,662,229

11.9

Percent

CARGO REVENUE TON MILES (000)

Total

526,356

498,279

5.6

Percent

 

 

PRELIMINARY OPERATIONAL AND FINANCIAL RESULTS

JUNE

2006

2005

Change

On-Time Performance 1

67.8%

79.0%

(11.2)

Points

Completion Factor 2

99.7%

99.8%

(0.1)

Points

May 2006 year-over-year consolidated RASM change

9.3

Percent

May 2006 year-over-year mainline RASM change

7.6

Percent

June 2006 estimated year-over-year consolidated RASM change

10.5-11.5

Percent

June 2006 estimated year-over-year mainline RASM change

9.0-10.0

Percent

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

2.19

Dollars

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

2.11

Dollars

1 Department of Transportation Arrivals within 14 minutes

2 Mainline Mileage Completion Percentage

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