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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 2, 2007

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 2, 2007, we issued a press release announcing our June 2007 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 2, 2007

By   /s/ Jennifer L. Vogel

       Jennifer L. Vogel

Senior Vice President, General Counsel, Secretary and Chief Compliance Officer

 
   

 

 

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 2007

OPERATIONAL PERFORMANCE

HOUSTON, July 2, 2007 - Continental Airlines (NYSE: CAL) today reported a June consolidated (mainline plus regional) load factor of 85.7 percent, 1.2 points above the June 2006 consolidated load factor, and a mainline load factor of 86.1 percent, 1.3 points above the June 2006 mainline load factor. The carrier reported a domestic mainline load factor of 87.7 percent, 1.0 point above June 2006, and an international mainline load factor of 84.4 percent, 1.7 points above June 2006. All four were records for June.

During the month, Continental recorded a U.S. Department of Transportation on-time arrival rate of 67.9 percent and a mainline completion factor of 99.4 percent.

In June 2007, Continental flew 8.6 billion consolidated revenue passenger miles (RPMs) and 10.1 billion consolidated available seat miles (ASMs), resulting in a traffic increase of 5.0 percent and a capacity increase of 3.4 percent as compared to June 2006. In June 2007, Continental flew 7.8 billion mainline RPMs and 9.0 billion mainline ASMs, resulting in a mainline traffic increase of 6.9 percent and a 5.3 percent increase in mainline capacity as compared to June 2006. Domestic mainline traffic was 4.1 billion RPMs in June 2007, up 5.8 percent from June 2006, and domestic mainline capacity was 4.7 billion ASMs, up 4.5 percent from June 2006.

For June 2007, consolidated passenger revenue per available seat mile (RASM) is estimated to have increased between 1.5 and 2.5 percent compared to June 2006, while mainline passenger RASM is estimated to have increased between 3.5 and 4.5 percent compared to June 2006. For May 2007, consolidated passenger RASM decreased 0.8 percent compared to May 2006, while mainline passenger RASM increased 1.1 percent from May 2006.

Continental ended the second quarter of 2007 with unrestricted cash and short-term investments of approximately $3.17 billion.

Continental's regional operations had a record June load factor of 82.8 percent, 0.5 points above the June 2006 load factor. Regional RPMs were 857.9 million and regional ASMs were 1,036.5 million in June 2007, resulting in a traffic decrease of 9.8 percent and a capacity decrease of 10.4 percent versus June 2006.

Continental Airlines is the world's fifth largest airline. Continental, together with Continental Express and Continental Connection, has more than 3,100 daily departures throughout the Americas, Europe and Asia, serving 144 domestic and 138 international destinations. More than 400 additional points are served via SkyTeam alliance airlines.  With more than 44,000 employees, Continental has hubs serving New York, Houston, Cleveland and Guam, and together with Continental Express, carries approximately 67 million passengers per year. Continental consistently earns awards and critical acclaim for both its operation and its corporate culture.

In 2007, Continental Airlines won its seventh J.D. Power and Associates award since 1996. The carrier received the highest rank in customer satisfaction among network carriers in North America in the J.D. Power and Associates 2007 Airline Satisfaction SurveySM. For the fourth consecutive year, FORTUNE magazine named Continental the No. 1 World's Most Admired Airline on its 2007 list of World's Most Admired Companies. Continental was also named the No. 1 airline on the publication's 2007 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 fourth year in a row, and "Best Executive/Business Class" for the fifth 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 2006 10-K and its other securities filings, including any amendments thereto, which identify important matters such as the consequences of the company's significant financial losses and high leverage, the significant cost of aircraft fuel, its high labor and pension costs, service interruptions at one of its hub airports, disruptions in its computer systems, and industry conditions, including the airline pricing environment, industry capacity decisions, industry consolidation, terrorist attacks, regulatory matters, excessive taxation, the availab ility and cost of insurance, public health threats and the seasonal nature of the airline business. 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, except as required by applicable law.

 

 

PRELIMINARY TRAFFIC RESULTS

JUNE

2007

2006

Change

REVENUE PASSENGER MILES (000)

Domestic

4,110,835

3,885,939

5.8

Percent

International

3,665,094

3,384,840

8.3

Percent

Transatlantic

1,968,892

1,770,180

11.2

Percent

Latin America

1,011,465

961,360

5.2

Percent

Pacific

684,737

653,300

4.8

Percent

Mainline

7,775,929

7,270,779

6.9

Percent

Regional

857,903

951,253

-9.8

Percent

Consolidated

8,633,832

8,222,032

5.0

Percent

AVAILABLE SEAT MILES (000)

Domestic

4,688,256

4,484,583

4.5

Percent

International

4,343,952

4,092,840

6.1

Percent

Transatlantic

2,329,543

2,096,223

11.1

Percent

Latin America

1,203,330

1,195,513

0.7

Percent

Pacific

811,079

801,104

1.2

Percent

Mainline

9,032,208

8,577,423

5.3

Percent

Regional

1,036,474

1,156,418

-10.4

Percent

Consolidated

10,068,682

9,733,841

3.4

Percent

PASSENGER LOAD FACTOR

Domestic

87.7 Percent

86.7 Percent

1.0

Point

International

84.4 Percent

82.7 Percent

1.7

Points

Transatlantic

84.5 Percent

84.4 Percent

0.1

Points

Latin America

84.1 Percent

80.4 Percent

3.7

Points

Pacific

84.4 Percent

81.5 Percent

2.9

Points

Mainline

86.1 Percent

84.8 Percent

1.3

Points

Regional

82.8 Percent

82.3 Percent

0.5

Points

Consolidated

85.7 Percent

84.5 Percent

1.2

Points

ONBOARD PASSENGERS

Mainline

4,614,437

4,388,744

5.1

Percent

Regional

1,575,291

1,682,243

-6.4

Percent

Consolidated

6,189,728

6,070,987

2.0

Percent

CARGO REVENUE TON MILES (000)

Total

83,538

86,504

-3.4

Percent

PRELIMINARY TRAFFIC RESULTS

YEAR-TO-DATE

2007

2006

Change

REVENUE PASSENGER MILES (000)

Domestic

22,269,204

21,111,999

5.5

Percent

International

18,886,084

17,535,127

7.7

Percent

Transatlantic

9,342,794

8,348,963

11.9

Percent

Latin America

5,771,671

5,500,002

4.9

Percent

Pacific

3,771,619

3,686,162

2.3

Percent

Mainline

41,155,288

38,647,126

6.5

Percent

Regional

4,917,842

5,052,290

-2.7

Percent

Consolidated

46,073,130

43,699,416

5.4

Percent

AVAILABLE SEAT MILES (000)

Domestic

26,652,881

25,345,587

5.2

Percent

International

23,885,512

22,572,422

5.8

Percent

Transatlantic

11,871,956

10,727,207

10.7

Percent

Latin America

7,157,045

7,005,793

2.2

Percent

Pacific

4,856,511

4,839,422

0.4

Percent

Mainline

50,538,393

47,918,009

5.5

Percent

Regional

6,302,603

6,456,244

-2.4

Percent

Consolidated

56,840,996

54,374,253

4.5

Percent

PASSENGER LOAD FACTOR

Domestic

83.6 Percent

83.3 Percent

0.3

Points

International

79.1 Percent

77.7 Percent

1.4

Points

Transatlantic

78.7 Percent

77.8 Percent

0.9

Points

Latin America

80.6 Percent

78.5 Percent

2.1

Points

Pacific

77.7 Percent

76.2 Percent

1.5

Points

Mainline

81.4 Percent

80.7 Percent

0.7

Points

Regional

78.0 Percent

78.3 Percent

-0.3

Points

Consolidated

81.1 Percent

80.4 Percent

0.7

Points

ONBOARD PASSENGERS

Mainline

25,362,313

24,229,727

4.7

Percent

Regional

8,934,174

8,957,642

-0.3

Percent

Consolidated

34,296,487

33,187,369

3.3

Percent

CARGO REVENUE TON MILES (000)

Total

507,607

526,326

-3.6

Percent

 

 

PRELIMINARY OPERATIONAL AND FINANCIAL RESULTS

JUNE

2007

2006

Change

On-Time Performance 1

67.9%

67.8%

0.1

Points

Completion Factor 2

99.4%

99.7%

-0.3

Points

May 2007 year-over-year consolidated RASM change

-0.8

Percent

May 2007 year-over-year mainline RASM change

1.1

Percent

June 2007 estimated year-over-year consolidated RASM change

1.5 - 2.5

Percent

June 2007 estimated year-over-year mainline RASM change

3.5 - 4.5

Percent

June 2007 estimated average price per gallon of fuel, including fuel taxes

2.16

Dollars

Second Quarter 2007 estimated average price per gallon of fuel, including fuel taxes

2.08

Dollars

1 Department of Transportation Arrivals within 14 minutes

2 Mainline Mileage Completion Percentage

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