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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): September 1, 2005

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 September 1, 2005, we issued a press release announcing our August performance and our estimated consolidated breakeven load factor for September. 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 August 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.

 

 

September 1, 2005

By   /s/ Chris Kenny

       Chris Kenny
Vice President and Controller
 

        
 

       
     

 

 

EXHIBIT INDEX

99.1

Press Release for August 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 AUGUST 2005

OPERATIONAL PERFORMANCE

HOUSTON, Sept. 1, 2005 - Continental Airlines (NYSE: CAL) today reported a record August consolidated (mainline plus regional) load factor of 81.8 percent, 0.2 points above last year's August consolidated load factor. The carrier reported a mainline load factor of 82.5 percent, 0.1 points below last year's August mainline load factor, and a record August domestic mainline load factor of 84.3 percent, 1.8 points above August 2004. In addition, the airline had an international mainline August load factor of 80.5 percent, 2.2 points below August 2004.

During the month, Continental recorded a U.S. Department of Transportation on-time arrival rate of 75.7 percent and a systemwide mainline completion factor of 99.6 percent.

In August 2005, Continental flew 7.7 billion consolidated revenue passenger miles (RPMs) and 9.4 billion consolidated available seat miles (ASMs), resulting in a traffic increase of 10.2 percent and a capacity increase of 9.9 percent as compared to August 2004. In August 2005, Continental flew 6.8 billion mainline RPMs and 8.3 billion mainline ASMs, resulting in a mainline traffic increase of 8.8 percent and a mainline capacity increase of 8.9 percent as compared to August 2004. Domestic mainline traffic was 3.7 billion RPMs in August 2005, up 5.8 percent from August 2004, and domestic mainline capacity was 4.4 billion ASMs, up 3.5 percent from August 2004.

For the month of August 2005, consolidated passenger revenue per available seat mile (RASM) is estimated to have increased between 4.5 and 5.5 percent compared to August 2004 while mainline passenger RASM is estimated to have increased between 4.0 and 5.0 percent compared to August 2004. For July 2005, consolidated passenger RASM increased 4.7 percent compared to July 2004 while mainline passenger RASM increased 4.6 percent from July 2004.

Continental's regional operations (Continental Express) had a record August load factor of 76.4 percent, 2.8 points above last year's August load factor. Regional RPMs were 850.3

 

million and regional ASMs were 1,112.9 million in August 2005, resulting in a traffic increase of 22.8 percent and a capacity increase of 18.4 percent versus August 2004.

Continental Airlines is the world's sixth-largest airline. Continental, together with Continental Express and Continental Connection, has more than 3,100 daily departures throughout the Americas, Europe and Asia, serving 150 domestic and 131 international destinations, more than any other carrier in the world. Nearly 400 additional points are served via SkyTeam alliance airlines, which include Aeromexico, Air France/KLM, Alitalia, CSA Czech Airlines, Delta Air Lines, Korean Air and Northwest Airlines.  With 41,000 employees, Continental has hubs serving New York, Houston, Cleveland and Guam, and together with Continental Express, carries approximately 56 million passengers per year. Continental consistently earns awards and critical acclaim for both its operation and its corporate culture.

For the second consecutive year, FORTUNE magazine named Continental the No. 1 Most Admired Global Airline on its 2005 list of Most Admired Global Companies. Continental was also included in the publication's annual "Top 50" list, which ranks all companies, across a wide variety of industries, that appear in the Global Most Admired Companies issue. Continental again won major awards at the 2005 OAG Airline of the Year Awards including "Airline of the Year" and "Best Airline Based in North America" for the second consecutive year, and "Best Executive/Business Class" for the third consecutive year. For more company information, visit www.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 2004 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.

(more)

 

PRELIMINARY TRAFFIC RESULTS

AUGUST

2005

2004

Change

REVENUE PASSENGER MILES (000)

Domestic

3,716,996

3,514,819

5.8

Percent

International

3,113,937

2,763,457

12.7

Percent

Transatlantic

1,581,001

1,403,533

12.6

Percent

Latin America

888,814

861,352

3.2

Percent

Pacific

644,121

498,571

29.2

Percent

Mainline

6,830,933

6,278,276

8.8

Percent

Regional

850,305

692,260

22.8

Percent

Consolidated

7,681,238

6,970,536

10.2

Percent

AVAILABLE SEAT MILES (000)

Domestic

4,410,230

4,261,136

3.5

Percent

International

3,868,758

3,340,792

15.8

Percent

Transatlantic

1,896,411

1,644,822

15.3

Percent

Latin America

1,136,026

1,058,484

7.3

Percent

Pacific

836,322

637,485

31.2

Percent

Mainline

8,278,988

7,601,928

8.9

Percent

Regional

1,112,894

940,056

18.4

Percent

Consolidated

9,391,882

8,541,984

9.9

Percent

PASSENGER LOAD FACTOR

Domestic

84.3 Percent

82.5 Percent

1.8

Points

International

80.5 Percent

82.7 Percent

-2.2

Points

Transatlantic

83.4 Percent

85.3 Percent

-1.9

Points

Latin America

78.2 Percent

81.4 Percent

-3.2

Points

Pacific

77.0 Percent

78.2 Percent

-1.2

Points

Mainline

82.5 Percent

82.6 Percent

-0.1

Points

Regional

76.4 Percent

73.6 Percent

2.8

Points

Consolidated

81.8 Percent

81.6 Percent

0.2

Points

ONBOARD PASSENGERS

Mainline

4,096,765

3,903,853

4.9

Percent

Regional

1,505,095

1,275,350

18.0

Percent

Consolidated

5,601,860

5,179,203

8.2

Percent

CARGO REVENUE TON MILES (000)

Total

80,801

81,992

-1.5

Percent

(more)

PRELIMINARY TRAFFIC RESULTS

YEAR-TO-DATE

2005

2004

Change

REVENUE PASSENGER MILES (000)

Domestic

26,853,356

25,650,721

4.7

Percent

International

21,209,110

18,756,699

13.1

Percent

Transatlantic

10,208,308

8,770,500

16.4

Percent

Latin America

6,513,090

6,093,696

6.9

Percent

Pacific

4,487,712

3,892,503

15.3

Percent

Mainline

48,062,466

44,407,420

8.2

Percent

Regional

5,910,415

4,869,917

21.4

Percent

Consolidated

53,972,881

49,277,337

9.5

Percent

AVAILABLE SEAT MILES (000)

Domestic

32,869,100

33,045,224

-0.5

Percent

International

27,014,644

24,033,953

12.4

Percent

Transatlantic

12,644,351

10,905,262

15.9

Percent

Latin America

8,473,174

8,139,057

4.1

Percent

Pacific

5,897,119

4,989,634

18.2

Percent

Mainline

59,883,744

57,079,177

4.9

Percent

Regional

7,973,618

6,862,636

16.2

Percent

Consolidated

67,857,362

63,941,813

6.1

Percent

PASSENGER LOAD FACTOR

Domestic

81.7 Percent

77.6 Percent

4.1

Points

International

78.5 Percent

78.0 Percent

0.5

Points

Transatlantic

80.7 Percent

80.4 Percent

0.3

Points

Latin America

76.9 Percent

74.9 Percent

2.0

Points

Pacific

76.1 Percent

78.0 Percent

-1.9

Points

Mainline

80.3 Percent

77.8 Percent

2.5

Points

Regional

74.1 Percent

71.0 Percent

3.1

Points

Consolidated

79.5 Percent

77.1 Percent

2.4

Points

ONBOARD PASSENGERS

Mainline

30,456,557

29,005,887

5.0

Percent

Regional

10,622,077

9,031,545

17.6

Percent

Consolidated

41,078,634

38,037,432

8.0

Percent

CARGO REVENUE TON MILES (000)

Total

662,000

664,793

-0.4

Percent

(more)

PRELIMINARY OPERATIONAL AND FINANCIAL RESULTS

AUGUST

2005

2004

Change

On-Time Performance 1

75.7%

81.3%

(5.6)

Points

Completion Factor 2

99.6%

99.5%

0.1

Points

YEAR-TO-DATE

2005

2004

Change

On-Time Performance 1

76.9%

77.5%

(0.6)

Points

Completion Factor 2

99.6%

99.6%

-

Points



July 2005 consolidated breakeven load factor 3



75.6



Percent

July 2005 year-over-year consolidated RASM change

4.7

Percent

July 2005 year-over-year mainline RASM change

4.6

Percent

August 2005 estimated year-over-year consolidated RASM change

4.5-5.5

Percent

August 2005 estimated year-over-year mainline RASM change

4.0-5.0

Percent

August 2005 estimated average price per gallon of fuel, including fuel taxes

1.82

Dollars

August 2005 estimated consolidated breakeven load factor 3

78

Percent

August 2005 actual consolidated load factor 4

81.8

Percent

September 2005 estimated consolidated breakeven load factor 3

92

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 Includes Continental Airlines and Continental Express

###