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UNITED
STATES
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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 PURSUANT
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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): January 29,
2009
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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
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(State
or Other Jurisdiction of
Incorporation)
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1-10323
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74-2099724
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(Commission
File Number)
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(IRS
Employer Identification No.)
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1600
Smith Street, Dept. HQSEO, Houston, Texas
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77002
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(Address
of Principal Executive Offices)
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(Zip
Code)
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(713)
324-2950
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(Registrant's
Telephone Number, Including Area
Code)
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______________________________________
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(Former
Name or Former Address, if Changed Since Last
Report)
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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):
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange
Act
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(17
CFR 240.14d-2(b))
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange
Act
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(17
CFR 240.13e-4(c))
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Item
2.02.
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Results of Operations
and Financial
Condition.
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On January 29, 2009, Continental
Airlines, Inc. (the “Company”) issued a press release announcing its financial
results for the fourth quarter and full year 2008. The press release
contains certain non-GAAP financial information. The reconciliation of such
non-GAAP financial information to GAAP financial measures is included in the
press release and the schedules thereto. Further, the press release contains
statements intended as “forward-looking statements,” all of which are subject to
the cautionary statement about forward-looking statements set forth
therein. The press release is furnished herewith as Exhibit 99.1 and
is incorporated herein by reference.
In accordance with SEC Release No.
33-8176, the information contained in such press release shall not be deemed
“filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as
amended, nor shall it be deemed incorporated by reference in any filing under
the Securities Act of 1933, as amended, except as shall be expressly set forth
by specific reference in such a filing.
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Item
7.01.
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Regulation FD
Disclosure.
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On January 29, 2009, we will provide an
update for investors presenting information relating to certain operational
results for the fourth quarter 2008 and our outlook for the first quarter and
full year 2009, as well as other information. The update is furnished
herewith as Exhibit 99.2 and is incorporated herein by reference.
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Item
9.01.
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Financial Statements
and Exhibits.
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(d)
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Exhibits
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99.1
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Press
Release
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99.2
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Investor
Update
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SIGNATURE
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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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January
29, 2009
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By
/s/ Lori A.
Gobillot
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Lori
A. Gobillot
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Staff
Vice President and Assistant General
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Counsel
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EXHIBIT
INDEX
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99.1
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Press
Release
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99.2
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Investor
Update
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EXHIBIT 99.1
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News
Release
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|||
 |
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Contact:
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Corporate
Communications
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Houston:
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713.324.5080
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Email:
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corpcomm@coair.com
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News
archive:
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continental.com/company/news/
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Address:
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P.O.
Box 4607, Houston,
TX 77210-4607
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CONTINENTAL
AIRLINES ANNOUNCES
2008 FULL YEAR AND FOURTH QUARTER
LOSS
Record
fuel prices hurt results for full year; weak economic environment impacts fourth
quarter
HOUSTON,
Jan. 29, 2009 – Continental Airlines (NYSE: CAL) today reported a 2008 net loss
of $585 million ($5.54 diluted loss per share). Excluding $234
million of previously announced special items, Continental recorded a net loss
of $351 million ($3.32 diluted loss per share) for the year.
Weakening
economic conditions and highly volatile fuel prices presented financial
challenges for the airline in the fourth quarter
2008. Continental recorded a fourth quarter net loss of $266 million
($2.33 diluted loss per share). Excluding $170 million of previously
announced special items, Continental recorded a fourth quarter net loss of $96
million ($0.84 diluted loss per share).
For the
full year 2008, jet fuel prices exhibited significant volatility, reaching
record high levels and dramatically increasing costs over
2007. Consolidated fuel cost totaled $5.9 billion in 2008, a
$1.9 billion increase over 2007, with mainline fuel cost totaling $4.9 billion,
a $1.6 billion increase over 2007. During the year, the price of a barrel
of crude oil peaked at $147.27 on July 11, then fell to a low of $32.40 on
December 19, the first time in almost five years that the price fell below
$35.00. For 2008, mainline fuel cost was $3.27 per gallon, including
a $0.10 per gallon net cost of effective fuel hedges.
“I
want to thank my co-workers for working together to meet tough operational and
financial challenges during the year,” said Larry Kellner, Continental’s
chairman and chief executive officer. “While there are
continuing hard times ahead, thanks to our team, we are well-positioned to
maintain our place as an industry leader.”
Fourth
Quarter Revenue and Capacity
Total
revenue for the fourth quarter was $3.5 billion, a decrease of 1.5 percent
compared to the same period in 2007.
Consolidated
revenue passenger miles (RPMs) for the fourth quarter decreased 8.1 percent
year-over-year on a capacity decrease of 7.4 percent, resulting in a fourth
quarter consolidated load factor of 78.7 percent, 0.7 points lower than the
fourth quarter 2007.
Consolidated
yield for the fourth quarter increased 5.7 percent
year-over-year. Consolidated revenue per available seat mile (RASM) for the
fourth quarter increased 4.8 percent year-over-year due to increased
yields.
Mainline
RPMs in the fourth quarter of 2008 decreased 8.5 percent compared to the fourth
quarter 2007, on a capacity decrease of 8.0 percent
year-over-year. Mainline load factor was 79.3
percent, down 0.4 points year-over-year.
Continental’s
mainline yield increased 6.4 percent in the fourth quarter over the same period
in 2007. As a result, fourth quarter 2008 mainline RASM was up 5.9
percent over the fourth quarter of 2007.
Passenger
revenue for the fourth quarter of 2008 and period-to-period comparisons of
related statistics by geographic region for the company’s mainline operations
and regional operations are as follows:
|
Passenger
Revenue
(in millions)
|
Percentage
Increase (Decrease) in
Fourth Quarter 2008 vs. Fourth
Quarter 2007
|
|||||||
|
Passenger
Revenue
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RASM
|
ASMs
|
||||||
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Domestic
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$1,293
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(6.9)%
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5.5
%
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(11.8)%
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||||
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Trans-Atlantic
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655
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1.5
%
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2.8
%
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(1.3)%
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||||
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Latin
America
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388
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6.4
%
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10.3
%
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(3.5)%
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||||
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Pacific
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236
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(2.4)%
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9.6
%
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(11.0)%
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||||
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Total
Mainline
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$2,572
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(2.6)%
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5.9
%
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(8.0)%
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||||
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Regional
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$ 531
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(3.8)%
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(2.0)%
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(1.9)%
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||||
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Consolidated
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$3,103
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(2.8)%
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4.8
%
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(7.4)%
|
||||
Fourth
Quarter Operations
Continental’s
employees earned a total of $5 million in cash incentives for on-time
performance in two of the three months during the quarter. The
company recorded a U.S. Department of Transportation (DOT) on-time arrival rate
of 75.1 percent and a systemwide mainline segment completion factor of 99.3
percent during the quarter.
Continental’s
operational performance during the fourth quarter started off positively but
deteriorated in December due to severe winter weather at all three hub airports,
including a
rare snow and ice storm at Houston’s Bush Intercontinental Airport.
On Dec.
10, 2008, freezing rain and snow accumulated at Bush Intercontinental in the
earliest snowfall in Houston in more than 60 years. The duration and
amount of frozen precipitation far exceeded the forecast upon which Continental
planned its operations for the evening. As a result, the weather caused
extensive mainline and regional flight cancellations and delays, including
numerous lengthy delays on the tarmac in Houston. Continental has
revised operational procedures and implemented numerous measures to prevent this
poor performance from recurring, including improving its de-icing capabilities,
at its Houston hub.
On Dec.
20, 2008, Continental flight 1404, a Boeing 737-500 aircraft, went off the
runway at Denver International Airport. All 110 customers and five
crew members safely evacuated from the plane with no life-threatening
injuries. Continental’s top priority is to continue to work closely
with passengers and crew members who need assistance. In addition,
the company is cooperating with the National Transportation Safety Board in its
effort to determine the probable cause of the accident.
“We are
grateful for the quick actions of our crew on Flight 1404, who evacuated all our
passengers safely, and for the fact that none of our passengers or crew
sustained life-threatening injuries,” said Jeff Smisek, president and chief
operating officer.
Product
Improvements
Continental
completed the installation of Audio/Video on Demand (AVOD) inflight
entertainment systems in economy sections of its fleet of Boeing 757-200
aircraft. The system has been available in the BusinessFirst cabins
of these aircraft since early 2007. The aircraft are used primarily
on trans-Atlantic flights to and from Continental’s New York hub at
Newark Liberty International Airport.
Working
with the Transportation Security Administration (TSA), Continental continued to
roll out its paperless boarding pass program, extending it to New York LaGuardia
and Cleveland Hopkins airports. The technology heightens the ability to detect
fraudulent boarding passes, while improving customer service and reducing paper
use. Continental customers may also use this technology at six additional
airports: Houston Intercontinental and Newark Liberty,
Ronald Reagan Washington National Airport,
Logan International Airport in Boston,
Austin-Bergstrom International Airport and San
Antonio International Airport.
During
the quarter, the company began waiving first checked-bag fees for primary
cardholders of Continental Airlines Chase credit and debit cards. In
addition, Continental began waiving second checked-bag fees for primary
cardholders of Continental Airlines Presidential Plus cards.
Continental
announced that it will launch seasonal daily nonstop service between its
Cleveland hub and London’s Heathrow Airport in May, replacing the current
seasonal service between Cleveland and London/Gatwick Airport, and will begin
daily nonstop service between its Houston hub and Frankfurt in November, subject
to government approval. In addition, the company filed an application
with the DOT to operate daily year-round service between Houston and Rio de
Janeiro, beginning in June. Continental will inaugurate daily nonstop
service between New York and Shanghai in March 2009.
Continental
outranked all other U.S. carriers to be chosen as the Best Airline for North
American Travel in Business
Traveler magazine’s 2008 Best in Business Travel Survey and placed
highest among U.S. airlines for Best Flight Attendants in North America. In
addition, the company was named the Best Large Domestic Airline for Premium
Class and Best Value for the Money (International) among all airlines in Zagat’s
2008 Airline Survey. Of the U.S. network airlines, Continental led in
most categories, including Best Frequent Flier Programs and Best Airline
Websites.
Fourth
Quarter Costs
Continental’s
mainline cost per available seat mile (CASM) increased 10.7 percent (8.5 percent
excluding special charges). Fuel prices for the fourth quarter were
up 16.6 percent compared to the prior year. CASM holding fuel rate
constant and excluding special charges was up 3.0 percent in the fourth quarter
compared to the same period in 2007.
“Given
the tremendous challenges of 2008, the Continental team did an impressive job
operating efficiently and keeping controllable costs down in a period of reduced
capacity,” said Zane Rowe, executive vice president and chief financial
officer.
Fleet
Changes Improve Efficiency
Continental’s
young, fuel-efficient fleet continued to provide a natural hedge against the
cost of jet fuel. The carrier is about 36 percent more fuel efficient
per mainline revenue passenger mile than it was in 1997, when the company began
its major re-fleeting.
The
company continued to improve fuel efficiency during the quarter by adding
modern, fuel-efficient aircraft to its fleet and installing winglets on
additional aircraft. During the quarter, Continental took delivery of
two new Boeing 737-900ER and two new Boeing 737-800 aircraft.
Continental
installed winglets on 14 of the company’s 737-500 aircraft during the quarter,
and now has winglets on over 270 of its mainline aircraft. All of the
company’s 737-700s, 800s, 900s and 757-200s have winglets, as do select aircraft
from Continental’s 737-300 and -500 series fleets. Winglets increase
aerodynamic efficiency and decrease drag, reducing fuel consumption and
emissions by up to five percent.
During
the quarter, 12 Boeing 737 classic aircraft exited Continental’s
fleet. Two owned 737-500 aircraft were sold to a Russian leasing
company and two owned 737-300 aircraft were retired. In addition, the
company terminated the leases of three 737-500 aircraft, which were sold by the
lessor to a Russian airline, and returned five leased 737-300 aircraft to
lessors upon lease expiration.
New
Aircraft Deliveries
As a
result of rescheduling due to the recent Boeing strike and other adjustments,
Continental is now
scheduled to take delivery of 13 Boeing 737-900ER aircraft in 2009 (one of which
was delivered earlier this month), and 11 Boeing 737 and two Boeing 777 aircraft
in 2010.
Continental
has also agreed to terms under which it would lease four additional 757-300
aircraft from Boeing Capital Corporation. Continental expects to
place these aircraft in service in the first half of 2010, following completion
of all modifications required to conform the aircraft to Continental’s other
757-300 aircraft.
Cash
and Financing
Continental ended the fourth quarter
with $2.64 billion in unrestricted cash and short-term
investments. In the fourth quarter, the company completed a public
offering of 13 million shares of Class B common stock at an average price
to the public of $15.84 per share, raising $200 million ($196 million
net). Proceeds from the offering were used for general corporate
purposes.
2008
in Review
Continental
took a number of steps to strengthen its cash balance and future competitive
position, and continued to distinguish itself from competitors through superior
customer service and excellent employee
relations. Continental:
|
·
|
Increased
total revenue by $1.0 billion to $15.2 billion for the year, up
7.1 percent over the same period in 2007. Continental reported
record full year passenger revenue with increases
in all mainline geographic regions as well as regional
operations.
|
|
·
|
Raised
approximately $1.2 billion through an amended Bankcard Agreement
(including the advance sale of mileage credits), the issuance of common
stock, the sale of Continental’s remaining equity interest in Copa, a new
pre-delivery payment facility and other new secured
borrowings.
|
|
·
|
Announced
plans to leave SkyTeam and join Star Alliance and begin broad code-sharing
and other commercial cooperation with United in the fourth quarter of
2009.
|
|
·
|
Filed
an application with the DOT to join United, Lufthansa, Air Canada and
certain other Star Alliance members in an antitrust immunized
alliance. Approval by the DOT will enable Continental, United
and the other immunized Star Alliance carriers to work closely together to
deliver highly competitive international flight schedules, fares and
service.
|
|
·
|
Unveiled
new 180-degree lie-flat seats for the BusinessFirst cabin. Customers will
begin seeing lie-flats seats on Continental’s Boeing 777 and 757-200
aircraft that serve long-haul international routes in the fall of 2009, on
its 767-400 aircraft (which will also receive AVOD
entertainment systems) beginning in 2010, and on its Boeing 787 fleet as
the aircraft are delivered to Continental.
|
|
·
|
Entered
into a new seven-year capacity purchase agreement with ExpressJet
Airlines, Inc. to provide regional jet service at lower rates, resulting
in approximately $50 million of annual savings.
|
|
·
|
Inaugurated
service from its New York and Houston hubs to London’s Heathrow
airport.
|
|
·
|
Reduced
costs within its control. Although CASM increased 14.9 percent
in 2008 compared to 2007, CASM holding fuel rate constant and excluding
special charges decreased 1.5
percent.
|
|
·
|
Reduced
capacity from its hubs at the conclusion of the peak summer season,
resulting in a 4.9 percent decline of domestic mainline capacity and 0.2
percent decline in consolidated capacity in 2008 compared to
2007.
|
|
·
|
Took
delivery of 17 Boeing 737-900ER and 12 Boeing 737-800
aircraft.
|
|
·
|
Delivered
solid operational performance, despite operating a large number of flights
in the New York airspace, which is the most delayed and congested airspace
in the nation. The company recorded a DOT on-time arrival rate
of 74.0 percent and a systemwide mainline segment completion factor of
98.9 percent for the year, operating 78 days without a single mainline
flight cancellation.
|
|
·
|
Continued
global operations during Hurricane Ike by activating its off-site Business
Continuity facility, transferring operations of the airline away from its
downtown Houston headquarters. Continental was forced to
suspend operations at Houston for two-and-a-half days in September due to
the hurricane.
|
|
·
|
Distributed
$158 million of 2007 profit sharing to its employees on Feb. 14,
2008. In addition, employees earned $20 million ($455 per
employee) in cash incentive payments in 2008 for monthly on-time
performance during the year.
|
|
·
|
Contributed
$102 million to its defined benefit pension plans in 2008. In
addition, the company contributed $50 million to its defined benefit
pension plans earlier this month. Since the beginning of 2002,
Continental has contributed more than $1.6 billion to its defined benefit
pension plans.
|
|
·
|
Provided
scholarships to 179 employees and dependents through the Continental
Scholarship Fund. Since 2002, the scholarship fund has assisted
1,025 employees or their dependents. Scholarship funds are
donated by employees through payroll deduction and raised by the
Continental Management Association.
|
|
·
|
Donated
nearly $1 million to assist 766 employees with necessities during
unexpected emergencies, including Hurricane Ike relief through
Continental’s WE CARE Employee
Fund.
|
|
·
|
Rated
as the top airline on FORTUNE magazine’s annual airline industry list of
World’s Most Admired Companies for the fifth consecutive year. The airline
also ranked No. 41 on FORTUNE’s World’s Most Admired Companies “Top 50”
list, which ranks companies in a wide variety of industries. Continental
was the only U.S. passenger carrier on the “Top 50” list.
|
|
·
|
Was
named the “Best Airline in North America” at the 2008 OAG Airline of the
Year Awards for the fifth straight
year.
|
Corporate
Background
Continental
Airlines is the world’s fifth largest airline. Continental, together
with Continental Express and Continental Connection, has more than 2,800 daily
departures throughout the Americas, Europe and Asia, serving 135 domestic and
132 international destinations. More than 650 additional points are served via
alliance partners. With more than 42,000 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. For more company information, visit
continental.com.
Continental
Airlines will conduct a regular quarterly telephone briefing today to discuss
these results and the company's financial and operating outlook with the
financial community and news media at 9:30 a.m. CT/10:30 a.m. ET. To listen to a
live broadcast of this briefing, go to continental.com/About Continental
/Investor Relations.
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 2007 Form
10-K and its other securities filings, including any amendments thereto, which
identify important matters such as the consequences of the company’s high
leverage, the significant volatility in the cost of aircraft fuel, its
transition to a new global alliance, delays in scheduled aircraft deliveries,
its high labor and pension costs, service interruptions at one of its hub
airports, disruptions to the operations of its regional operators, 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 availability and cost of
insurance, public health threats, an economic downturn in the U.S. and global
economies 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.
-tables
attached-
CONTINENTAL
AIRLINES, INC. AND SUBSIDIARIES
|
Three
Months
Ended
December 31,
|
%
Increase
(Decrease)
|
Year
Ended
December
31,
|
%
Increase
(Decrease)
|
|||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||
|
Operating
Revenue:
|
||||||||||||
|
Passenger (excluding fees and
taxes
of $345, $363, $1,531 and
$1,499)
|
$3,103
|
$3,193
|
(2.8)%
|
$13,737
|
$12,995
|
5.7 %
|
||||||
|
Cargo
|
114
|
125
|
(8.8)%
|
497
|
453
|
9.7 %
|
||||||
|
Other, net
|
254
|
205
|
23.9 %
|
1,007
|
784
|
28.4 %
|
||||||
|
3,471
|
3,523
|
(1.5)%
|
15,241
|
14,232
|
7.1 %
|
|||||||
|
Operating
Expenses:
|
||||||||||||
|
Aircraft fuel and related
taxes
|
993
|
955
|
4.0 %
|
4,905
|
3,354
|
46.2 %
|
||||||
|
Wages, salaries and related
costs
|
760
|
723
|
5.1 %
|
2,957
|
3,127
|
(5.4)%
|
||||||
|
Regional capacity purchase,
net
|
425
|
474
|
(10.3)%
|
2,073
|
1,793
|
15.6 %
|
||||||
|
Aircraft rentals
|
240
|
249
|
(3.6)%
|
976
|
994
|
(1.8)%
|
||||||
|
Landing fees and other
rentals
|
210
|
198
|
6.1
%
|
853
|
790
|
8.0 %
|
||||||
|
Distribution costs
|
159
|
173
|
(8.1)%
|
717
|
682
|
5.1 %
|
||||||
|
Maintenance, materials and
repairs
|
135
|
142
|
(4.9)%
|
612
|
621
|
(1.4)%
|
||||||
|
Depreciation and
amortization
|
111
|
107
|
3.7 %
|
438
|
413
|
6.1 %
|
||||||
|
Passenger services
|
91
|
95
|
(4.2)%
|
406
|
389
|
4.4 %
|
||||||
|
Special charges (credits)
(A)
|
40
|
(17)
|
NM
|
181
|
13
|
NM
|
||||||
|
Other
|
332
|
344
|
(3.5)%
|
1,437
|
1,369
|
5.0 %
|
||||||
|
3,496
|
3,443
|
1.5 %
|
15,555
|
13,545
|
14.8 %
|
|||||||
|
Operating
Income (Loss)
|
(25)
|
80
|
NM
|
(314)
|
687
|
NM
|
||||||
|
Nonoperating
Income (Expense):
|
||||||||||||
|
Interest expense
|
(94)
|
(94)
|
-
|
(365)
|
(383)
|
(4.7)%
|
||||||
|
Interest
capitalized
|
8
|
9
|
(11.1)%
|
33
|
27
|
22.2 %
|
||||||
|
Interest income
|
8
|
39
|
(79.5)%
|
65
|
160
|
(59.4)%
|
||||||
|
Gain on sale of
investments
|
-
|
30
|
(100.0)%
|
78
|
37
|
NM
|
||||||
|
Other, net (B)
|
(161)
|
7
|
NM
|
(181)
|
38
|
NM
|
||||||
|
(239)
|
(9)
|
NM
|
(370)
|
(121)
|
NM
|
|||||||
|
Income
(Loss) before Income Taxes
|
(264)
|
71
|
NM
|
(684)
|
566
|
NM
|
||||||
|
Income
Tax Benefit (Expense) (C)
|
(2)
|
(103)
|
(98.1)%
|
99
|
(107)
|
NM
|
||||||
|
Net
Income (Loss)
|
$ (266)
|
$ (32)
|
NM
|
$
(585)
|
$
459
|
NM
|
||||||
|
Earnings
(Loss) per Share:
|
||||||||||||
|
Basic
|
$
(2.33)
|
$
(0.33)
|
NM
|
$
(5.54)
|
$
4.73
|
NM
|
||||||
|
Diluted
|
$
(2.33)
|
$
(0.33)
|
NM
|
$
(5.54)
|
$
4.18
|
NM
|
||||||
|
Shares
used for Computation:
|
||||||||||||
|
Basic
|
114
|
98
|
16.3 %
|
106
|
97
|
9.3 %
|
||||||
|
Diluted
|
114
|
98
|
16.3 %
|
106
|
114
|
(7.0)%
|
||||||
STATEMENTS
OF OPERATIONS
(In
millions, except per share data) (Unaudited)
|
(A)
|
Operating
Expenses: Special Charges (Credits). Includes
the following (in millions):
|
|
Three
Months
Ended December
31,
|
Year
Ended
December
31,
|
|||
|
2008
|
2007
|
2008
|
2007
|
|
|
Pension
plan settlement charges
|
$ 44
|
$ 7
|
$ 52
|
$ 31
|
|
Aircraft
related charges net of (gains) losses on sales
|
(5)
|
(28)
|
40
|
(22)
|
|
Severance
|
1
|
-
|
34
|
-
|
|
Route
impairment and other
|
-
|
4
|
55
|
4
|
|
Special
charges (credits)
|
$ 40
|
$(17)
|
$ 181
|
$ 13
|
|
(B)
|
Nonoperating Income
(Expense): Other, net. Other nonoperating
income (loss) includes the following special
items:
|
Loss on fuel contracts with
Lehman Brothers. Lehman Brothers, the counterparty to several
of the company’s fuel derivative contracts, declared bankruptcy on Sept. 15,
2008. The derivative contracts with Lehman Brothers largely consisted
of crude oil collars (comprised of option contracts with both call and put
options) that extended through March 2009. The company determined
that its fuel derivative contracts with Lehman Brothers were no longer
considered highly-effective hedges and recorded subsequent changes in the fair
value of the contracts since that determination date (of Sept. 15, 2008) as part
of nonoperating income (expense). The total amount of the loss
recorded during the fourth quarter as a result of changes to the fair value of
the contracts was $125 million. In January of 2009, Continental
terminated all the derivative contracts with Lehman Brothers.
Write-down in value of
auction rate securities, net. Continental recorded a loss of
$60 million during 2008 ($31 million during the fourth quarter) to reflect an
other-than-temporary decline in the value of company-held student loan related
auction rate securities. Separately, during the fourth quarter, one
institution granted Continental a put right permitting the company to sell its
auction rate securities with a par value of $125 million in 2010 at their full
par value. The company recorded a gain of $26 million during the
fourth quarter for this put right. The write-down, net of the gain on
the put right, was $5 million during the fourth quarter and $34 million for the
full year 2008.
|
(C)
|
Income Taxes. During
the year ended December 31, 2008, the company recorded a non-cash income
tax credit of $28 million resulting from higher utilization of net
operating loss (NOL) carryforwards than had previously been
anticipated.
|
In 2007,
we recorded a special non-cash tax charge of $104 million to increase the
valuation allowance to be fully reserved for certain NOLs, expiring in 2008
through 2011.
|
|
CONTINENTAL
AIRLINES, INC. AND SUBSIDIARIES
|
STATISTICS
|
Three
Months
Ended
December 31,
|
%
Increase
(Decrease)
|
Year Ended
December
31,
|
%
Increase
(Decrease)
|
||||||
|
2008
|
2007
|
2008
|
2007
|
||||||
|
Mainline
Operations:
|
|||||||||
|
Passengers
(thousands)
|
10,968
|
12,311
|
(10.9)%
|
48,682
|
50,960
|
(4.5)%
|
|||
|
Revenue
passenger miles (millions)
|
18,548
|
20,271
|
(8.5)%
|
82,806
|
84,309
|
(1.8)%
|
|||
|
Available
seat miles (millions)
|
23,402
|
25,447
|
(8.0)%
|
102,527
|
103,139
|
(0.6)%
|
|||
|
Cargo
ton miles (millions)
|
236
|
280
|
(15.7)%
|
1,005
|
1,037
|
(3.1)%
|
|||
|
Passenger
load factor:
|
|||||||||
|
Mainline
|
79.3%
|
79.7%
|
(0.4)
pts.
|
80.8%
|
81.7%
|
(0.9)
pts.
|
|||
|
Domestic
|
82.6%
|
82.3%
|
0.3
pts.
|
83.3%
|
83.9%
|
(0.6)
pts.
|
|||
|
International
|
75.8%
|
76.7%
|
(0.9)
pts.
|
78.2%
|
79.4%
|
(1.2)
pts.
|
|||
|
Passenger
revenue per available seat mile (cents)
|
10.99
|
10.38
|
5.9 %
|
11.10
|
10.47
|
6.0 %
|
|||
|
Total
revenue per available seat mile (cents)
|
12.51
|
11.64
|
7.5 %
|
12.51
|
11.65
|
7.4 %
|
|||
|
Average
yield per revenue passenger mile (cents)
|
13.87
|
13.03
|
6.4 %
|
13.75
|
12.80
|
7.4 %
|
|||
|
Average
fare per revenue passenger
|
$236.87
|
$216.62
|
9.3 %
|
$232.26
|
$214.06
|
10.4 %
|
|||
|
Cost
per available seat mile (CASM) (cents) (A)
|
12.27
|
11.08
|
10.7 %
|
12.44
|
10.83
|
14.9 %
|
|||
|
Special
charges (credits) per available seat mile (cents)
|
0.17
|
(0.07)
|
NM
|
0.15
|
0.01
|
NM
|
|||
|
CASM,
holding fuel rate constant (cents) (A)
|
11.66
|
11.08
|
5.2 %
|
10.81
|
10.83
|
(0.2)%
|
|||
|
Average
price per gallon of fuel, including
fuel taxes (cents)
|
292.54
|
250.89
|
16.6 %
|
327.45
|
217.53
|
50.5 %
|
|||
|
Fuel
gallons consumed (millions)
|
339
|
381
|
(11.0)%
|
1,498
|
1,542
|
(2.9)%
|
|||
|
Actual
aircraft in fleet at end of period (B)
|
350
|
365
|
(4.1)%
|
350
|
365
|
(4.1)%
|
|||
|
Average
length of aircraft flight (miles)
|
1,489
|
1,444
|
3.1 %
|
1,494
|
1,450
|
3.0 %
|
|||
|
Average
daily utilization of each aircraft (hours)
|
10:14
|
11:20
|
(9.2)%
|
11:06
|
11:34
|
(4.0)%
|
|||
|
Regional
Operations:
|
|||||||||
|
Passengers
(thousands)
|
4,215
|
4,421
|
(4.7)%
|
18,010
|
17,970
|
0.2 %
|
|||
|
Revenue
passenger miles (millions)
|
2,277
|
2,399
|
(5.1)%
|
9,880
|
9,856
|
0.2 %
|
|||
|
Available
seat miles (millions)
|
3,046
|
3,104
|
(1.9)%
|
12,984
|
12,599
|
3.1 %
|
|||
|
Passenger
load factor
|
74.7%
|
77.3%
|
(2.6)
pts.
|
76.1%
|
78.2%
|
(2.1)
pts.
|
|||
|
Passenger
revenue per available seat mile (cents)
|
17.44
|
17.79
|
(2.0)%
|
18.14
|
17.47
|
3.8 %
|
|||
|
Average
yield per revenue passenger mile (cents)
|
23.33
|
23.02
|
1.3 %
|
23.83
|
22.33
|
6.7 %
|
|||
|
Actual
aircraft in fleet at end of period (C)
|
282
|
263
|
7.2 %
|
282
|
263
|
7.2 %
|
|||
|
Consolidated
Operations (Mainline and Regional):
|
|||||||||
|
Passengers
(thousands)
|
15,183
|
16,732
|
(9.3)%
|
66,692
|
68,930
|
(3.2)%
|
|||
|
Revenue
passenger miles (millions)
|
20,825
|
22,670
|
(8.1)%
|
92,686
|
94,165
|
(1.6)%
|
|||
|
Available
seat miles (millions)
|
26,448
|
28,551
|
(7.4)%
|
115,511
|
115,738
|
(0.2)%
|
|||
|
Passenger
load factor
|
78.7%
|
79.4%
|
(0.7)
pts.
|
80.2%
|
81.4%
|
(1.2)
pts.
|
|||
|
Passenger
revenue per available seat mile (cents)
|
11.73
|
11.19
|
4.8 %
|
11.89
|
11.23
|
5.9 %
|
|||
|
Average
yield per revenue passenger mile (cents)
|
14.90
|
14.09
|
5.7 %
|
14.82
|
13.80
|
7.4 %
|
|||
|
(A)
|
Includes
impact of special charges
(credits).
|
|
(B)
|
Excludes
12 737-300 and seven 737-500 grounded aircraft at December 31,
2008.
|
|
(C)
|
Consists
of flights operated under capacity purchase agreements with Continental's
regional carriers ExpressJet, Colgan, Chautauqua and
CommutAir. Excludes 30 EMB-135 temporarily grounded aircraft at
December 31, 2008.
|
CONTINENTAL
AIRLINES, INC. AND SUBSIDIARIES
NON-GAAP
FINANCIAL MEASURES
|
Net
Income (Loss) (in millions)
|
Three
Months
Ended
December 31,
|
Year
Ended
December
31,
|
||||||
|
2008
|
2007
|
2008
|
2007
|
|||||
|
Net
income (loss)
|
$(266)
|
$(32)
|
$(585)
|
$459
|
||||
|
Special
items, net of income taxes:
|
||||||||
|
Special
charges (credits) (net of tax of $0, $0, $18 and $0)
|
40
|
(17)
|
163
|
13
|
||||
|
Gain
on sale of investments (net of tax of $0, $0, $(29) and
$0)
|
-
|
(30)
|
(49)
|
(37)
|
||||
|
Other,
net (net of tax of $0, $0, $11 and $0)
|
130
|
-
|
148
|
-
|
||||
|
Income
taxes
|
-
|
104
|
(28)
|
104
|
||||
|
Net
income (loss), excluding special items (A)
|
$
(96)
|
$ 25
|
$(351)
|
$539
|
||||
|
Earnings
(Loss) per Share
|
Three
Months Ended
December 31, 2008
|
Year Ended
December 31, 2008
|
||||
|
Diluted
earnings (loss) per share
|
$(2.33)
|
$(5.54)
|
||||
|
Special
items:
|
||||||
|
Special
charges (credits)
|
0.35
|
1.53
|
||||
|
Gain
on sale of investments
|
-
|
(0.46)
|
||||
|
Other,
net
|
1.14
|
1.41
|
||||
|
Income
taxes
|
-
|
(0.26)
|
||||
|
Diluted
earnings per share, excluding special items (A)
|
$(0.84)
|
$(3.32)
|
||||
|
CASM
Mainline Operations (cents)
|
Three
Months Ended
December
31,
|
%
Increase/
(Decrease)
|
Year
Ended
December
31,
|
%
Increase/
(Decrease)
|
||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||
|
Cost
per available seat mile (CASM)
|
12.27
|
11.08
|
10.7 %
|
12.44
|
10.83
|
14.9 %
|
||||||
|
Less: Special
(charges) credits
|
(0.17)
|
0.07
|
NM
|
(0.15)
|
(0.01)
|
NM
|
||||||
|
CASM,
excluding special charges (credits) (A)
|
12.10
|
11.15
|
8.5 %
|
12.29
|
10.82
|
13.6 %
|
||||||
|
Less: Current
year fuel cost per available
seat
mile (B)
|
(4.24)
|
-
|
NM
|
(4.79)
|
-
|
NM
|
||||||
|
Add: Current
year fuel cost at prior year
fuel
price per available seat mile (B)
|
3.63
|
-
|
NM
|
3.16
|
-
|
NM
|
||||||
|
CASM,
holding fuel rate constant and excluding
special
charges (credits) (A)
|
11.49
|
11.15
|
3.0 %
|
10.66
|
10.82
|
(1.5)%
|
||||||
|
(A)
|
These
financial measures provide management and investors the ability to measure
and monitor Continental's performance on a consistent
basis.
|
|
(B)
|
Both
the cost and availability of fuel are subject to many economic and
political factors and are therefore beyond the company's
control.
|
###
|
|
Exhibit
99.2
DeAnne
Gabel
Director
- Investor Relations
|
|
Investor
Update
|
Issue
Date: January 29, 2009
|
This
investor update provides information on Continental's guidance for the first
quarter and the full year 2009, as well as certain historical information
pertaining to the fourth quarter of 2008.
Advanced Booked Seat Factor
(Percentage of Available Seats that are Sold)
Consolidated
domestic bookings for the next six weeks are running 1 - 2 points higher as
compared to the same period as last year. Mainline Latin bookings are
running 1 - 2 points behind last year. Transatlantic bookings are
about 6 to 7 points behind last year. Pacific bookings are running 2
- - 3 points behind last year.
For the
first quarter of 2009, the Company expects both its consolidated and mainline
load factors to be down approximately 3.5 points year-over-year
(“yoy”).
Unrestricted Cash, Cash
Equivalents and Short Term Investments Balance
Continental
anticipates ending the first quarter of 2009 with an unrestricted cash, cash
equivalents and short-term investments balance of approximately $2.6
billion.
Cargo, Mail, and Other
Revenue
The
Company's Cargo, Mail, and Other Revenue for the first quarter 2009 is expected
to be between $370 and $380 million.
|
Available Seat Miles (ASMs)
|
1st
Qtr. 2009 Estimate
Year-over-Year % Change
|
||||
|
Mainline
|
|||||
|
Domestic
|
(12.1)%
|
||||
|
Latin
America
|
0.9
%
|
||||
|
Transatlantic
|
(2.0)%
|
||||
|
Pacific
|
(10.5)%
|
||||
|
Total
Mainline
|
(7.4)%
|
||||
|
Regional
|
(2.6)%
|
||||
|
Consolidated
|
|||||
|
Domestic
|
(10.3)%
|
||||
|
International
|
(2.8)%
|
||||
|
Total
Consolidated
|
(6.9)%
|
||||
For the
full year 2009, Continental expects its mainline capacity to be down between
3.5% to 4.5% yoy, with its mainline domestic capacity expected to be down 6% to
7% yoy.
|
Load Factor
|
1st Qtr. 2009 (E)
|
Full Year 2009 (E)
|
|
Domestic
|
79
- 80%
|
81
- 82%
|
|
Latin
America
|
80
- 81%
|
81
- 82%
|
|
Transatlantic
|
65
- 66%
|
75
- 76%
|
|
Pacific
|
71
- 72%
|
74
- 75%
|
|
Total
Mainline
|
75
- 76%
|
79
- 80%
|
|
Regional
|
71
- 72%
|
74
- 75%
|
|
Consolidated
|
74
- 75%
|
78
- 79%
|
Continental's
month-to-date consolidated load factor is updated daily and can be found on
continental.com on the Investor Relations page under the About Continental
menu.
Fourth Quarter 2008 Domestic
Performance on a Hub by Hub Basis
Continental’s
fourth quarter 2008 consolidated domestic capacity at its New York Liberty hub
was down 6.2%, with traffic down 8.3%, resulting in a load factor decrease of
1.8 pts, compared to the fourth quarter of 2007. Transcon capacity,
which is a subset of New York Liberty capacity, was down 3.2% yoy in the fourth
quarter while traffic was down 2.3%, resulting in a load factor increase of 0.8
pts, compared to the same period in 2007. Consolidated domestic
capacity at its Houston hub was down 10.7% yoy, with traffic down 10.1%,
resulting in a load factor increase of 0.6 pts, compared to the fourth quarter
of 2007. Consolidated domestic capacity at its Cleveland hub was down
19.5% yoy, with traffic down 19.6%, resulting in a fourth quarter load factor
decrease of 0.1 pt, compared to the same period in 2007.
Pension Expense and
Contributions
Earlier
this month the Company contributed $50 million to its defined
benefit pension plans. The Company expects to make approximately $75
million in additional contributions to its defined benefit pension plans during
the remainder of calendar year 2009.
Continental
estimates that its non-cash pension expense will be approximately $250 million
for 2009. This amount excludes non-cash settlement charges related to
lump-sum distributions. Settlement charges are expected during 2009,
but the Company is not able at this time to estimate the amount of these
charges.
|
CASM Mainline Operating
Statistics
|
2009 Estimate (cents)
|
||
|
1st Qtr.
|
Full Year
|
||
|
CASM
|
11.00
- 11.05
|
10.93
- 10.98
|
|
|
Special
Items per ASM
|
-
|
-
|
|
|
CASM
Less Special Items (a)
|
11.00
- 11.05
|
10.93
- 10.98
|
|
|
Aircraft
Fuel & Related Taxes per ASM
|
(2.86)
|
(3.05)
|
|
|
CASM
Less Special Items and Aircraft Fuel & Related Taxes
(b)
|
8.14
- 8.19
|
7.88
- 7.93
|
|
|
Consolidated Operating
Statistics
|
2009 Estimate (cents)
|
|||
|
1st Qtr.
|
Full Year
|
|||
|
CASM
|
11.93
- 11.98
|
11.83
- 11.88
|
||
|
Special
Items per ASM
|
-
|
-
|
||
|
CASM
Less Special Items (a)
|
11.93
- 11.98
|
11.83
- 11.88
|
||
|
Aircraft
Fuel & Related Taxes per ASM
|
(3.09)
|
(3.28)
|
||
|
CASM
Less Special Items and Aircraft Fuel & Related Taxes
(b)
|
8.84
- 8.89
|
8.55
- 8.60
|
||
Variable
Compensation
In
accordance with the Company's profit sharing plan, to the extent applicable,
profit sharing accruals are accrued each quarter based on the actual cumulative
profits earned year-to-date. For more information regarding this program,
see the Company’s 2007 Form 10-K. Generally, the profit sharing
program provides for a profit sharing pool for eligible employees of 30% of the
first $250 million of annual pre-tax income, 25% of the next $250 million, and
20% thereafter (with certain adjustments to pre-tax income as defined in the
profit sharing program).
Continental
has granted profit based restricted stock unit ("RSU") awards pursuant to its
Long-Term Incentive and RSU Program. Expense for these awards is
recognized ratably over the required service period, with changes in the price
of the Company's common stock and the payment percentage (which is tied to
varying levels of cumulative profit sharing) resulting in a corresponding
increase or decrease in "Wages, Salaries, and Related Costs" in the Company's
consolidated statements of operations. The closing stock price of
$18.06 on December 31, 2008 was used in estimating the expense impact of the
awards for the Company's 2009 cost estimates included herein. Based on the
Company's current assumptions regarding payment percentages and the cumulative
profit sharing targets to be achieved pursuant to the awards, the Company
estimates that a $1 increase or decrease in the price of its common stock from
December 31, 2008 will result in an increase or decrease of approximately $3
million in Wages, Salaries, and Related Costs attributable to the awards to be
recognized in the first quarter 2009. For more information regarding
these awards, including performance periods and how the Company accrues for the
awards, see the Company's 2007 Form 10-K.
|
Fuel Requirements (Gallons)
|
2009 Estimate
|
|
|
1st Qtr.
|
Full Year
|
|
|
Mainline
|
337
Million
|
1,417
Million
|
|
Regional
|
73
Million
|
297
Million
|
|
Mainline Fuel Price per
Gallon (including fuel
taxes and impact of hedges)
|
$1.99
|
$2.13
|
Fuel Hedges - As of January
26, 2009
As of
January 26, 2009, the Company's projected consolidated fuel requirements were
hedged as follows, excluding recently terminated contracts with Lehman
Brothers:
|
Maximum Price
|
Minimum Price
|
|||||||
|
%
of
Expected
Consumption
|
Weighted
Average Price (per gallon)
|
%
of
Expected
Consumption
|
Weighted
Average
Price
(per
gallon)
|
|||||
|
First Quarter 2009
|
||||||||
|
WTI
crude oil call options
|
26%
|
$2.54
|
N/A
|
N/A
|
||||
|
WTI
crude oil
swaps
|
20%
|
1.09
|
20%
|
$1.09
|
||||
|
WTI
crude oil
collars
|
11%
|
3.32
|
11%
|
2.39
|
||||
|
Total
|
57%
|
31%
|
||||||
|
Second Quarter 2009
|
||||||||
|
WTI
crude oil
collars
|
34%
|
$3.48
|
34%
|
$2.61
|
||||
|
Total
|
34%
|
34%
|
||||||
|
Third Quarter 2009
|
||||||||
|
WTI
crude oil
swaps
|
5%
|
$1.31
|
5%
|
$1.31
|
||||
|
WTI
crude oil
collars
|
10%
|
3.21
|
10%
|
2.40
|
||||
|
Total
|
15%
|
15%
|
||||||
|
Fourth Quarter 2009
|
||||||||
|
WTI
crude oil
swaps
|
5%
|
$1.36
|
5%
|
$1.36
|
||||
|
Total
|
5%
|
5%
|
||||||
|
Full Year 2009
|
||||||||
|
WTI
crude oil call options
|
6%
|
$2.54
|
N/A
|
N/A
|
||||
|
WTI
crude oil
swaps
|
7%
|
1.17
|
7%
|
$1.17
|
||||
|
WTI
crude oil
collars
|
14%
|
3.40
|
14%
|
2.53
|
||||
|
Total
|
27%
|
21%
|
||||||
Based on
the forward curve for WTI as of January 26, 2009, the Company estimates that all
of its fuel hedges (including the impact of residual unrecognized loss on the
fuel hedges with Lehman Brothers) would result in a net increase in fuel expense
of $0.33 per gallon in the first quarter 2009 and $0.25 per gallon for the full
year 2009. For the un-hedged portion of its consolidated fuel
requirements (excluding the effect of fuel hedges with Lehman Brothers) the
Company is assuming an average cost of jet fuel (including fuel taxes) of $1.70
for the first quarter and $1.92 for the full year 2009.
The
Company has no fuel hedge contracts beyond 2009.
As of
January 26, 2009 the Company had $187 million of cash collateral posted with its
fuel hedge counterparties.
|
Selected Expense Amounts
|
2009 Estimated Amounts
($Millions)
|
|
|
1st Qtr.
|
Full Year
|
|
|
Aircraft
Rent
|
$236
|
$930
|
|
Depreciation
& Amortization
|
$115
|
$484
|
|
Net
Interest Expense*
|
$81
|
$333
|
*Net
Interest Expense includes interest expense, capitalized interest and interest
income.
Continental Airlines, Inc.
Tax Computation
The
Company's ability to record a tax benefit on net losses is limited by its net
deferred tax position. The Company previously recorded the maximum
available deferred tax benefit permitted by its prior net deferred tax liability
position. Subsequent losses will generally not be benefitted until the
Company re-establishes a net deferred tax liability. Subsequent pretax
income, when considered along with subsequent other comprehensive income, will
generally not carry tax expense until the Company exhausts its beginning
unbenefitted net deferred tax assets via release of valuation
allowance.
Debt and Capital
Leases
Continental’s
total Debt and Capital Leases balance at year end 2008 was $5.9 billion of which
$5.7 billion was debt.
As of
January 28, 2009, scheduled debt and capital lease payments for the full year
2009 are estimated to be $536 million, with approximately $93 million, $46
million, $339 million and $58 million to be paid in the first, second, third and
fourth quarters of 2009, respectively.
|
Cash Capital Expenditures (in
millions)
|
2009 Estimate
|
|
|
Fleet
Related
|
$190
|
|
|
Non-Fleet
|
210
|
|
|
Rotable
Parts & Capitalized Interest
|
55
|
|
|
Total
|
$455
|
|
|
Net
Purchase Deposits Paid/(Refunded)
|
75
|
|
|
Total
Cash Capital Expenditures
|
$530
|
|
EPS Estimated Share
Count
Share
count estimates for calculating basic and diluted earnings per share at
different income levels are as follows:
First
Quarter 2009 (Millions)
|
Quarterly
|
Number
of Shares
|
||
|
Earnings Level
|
Basic
|
Diluted
|
Interest addback (net of applicable profit sharing
and income taxes impact)
|
|
Over
$78
|
123
|
137
|
$6
|
|
Between
$49 - $78
|
123
|
133
|
$3
|
|
Under
$49
|
123
|
125
|
--
|
|
Net
Loss
|
123
|
123
|
--
|
Full
Year 2009 (Millions)
|
Year-to-date
|
Number
of Shares
|
||
|
Earnings Level
|
Basic
|
Diluted
|
Interest addback (net of applicable profit sharing
and income taxes impact)
|
|
Over
$245
|
124
|
138
|
$19
|
|
Between
$158 - $245
|
124
|
134
|
$11
|
|
Under
$158
|
124
|
125
|
--
|
|
Net
Loss
|
124
|
124
|
--
|
These
share count charts are based upon several assumptions including market stock
price and number of shares outstanding. The number of shares used in
the actual EPS calculation will likely be different than those set forth
above.
(a) These
financial measures provide management and investors the ability to measure and
monitor Continental's performance on a consistent basis.
(b) Cost
per available seat mile excluding special items, fuel, and related taxes is
computed by multiplying fuel price per gallon, including fuel taxes, by fuel
gallons consumed and subtracting that amount from operating expenses excluding
special items then dividing by available seat miles. This statistic
provides management and investors the ability to measure and monitor
Continental's cost performance absent special items and fuel price
volatility. Both the cost and availability of fuel are subject to
many economic and political factors beyond Continental's control.
This
update 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 2007 Form 10-K and its
other securities filings, including any amendments thereto, which identify
important matters such as the consequences of the Company's high leverage, the
significant volatility in the cost of aircraft fuel, its transition to a new
global alliance, delays in scheduled aircraft deliveries, its high labor and
pension costs, service interruptions at one of its hub airports, disruptions to
the operations of its regional operators, 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 availability and cost of insurance, public
health threats, the economic downturn in the U.S. and global economies 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 update, except as required
by applicable law.
Fleet
News
Continental
Airlines Fleet Plan
Includes
Aircraft Operated by the Company or Operated on the
Company's
Behalf Under a Capacity Purchase Agreement
January
29, 2009
|
Net
|
Net
|
|||||||||
|
Total
@
|
Changes
|
Total
@
|
Changes
|
Total
@
|
||||||
|
YE
2008
|
2009E
|
YE
2009E
|
2010E
|
YE
2010E
|
||||||
|
Mainline Jets
|
||||||||||
|
777-200ER*
|
20
|
-
|
20
|
2
|
22
|
|||||
|
787-8
|
-
|
-
|
-
|
-
|
-
|
|||||
|
767-400ER
|
16
|
-
|
16
|
-
|
16
|
|||||
|
767-200ER
|
10
|
-
|
10
|
-
|
10
|
|||||
|
757-300
|
17
|
-
|
17
|
4
|
21
|
|||||
|
757-200
|
41
|
-
|
41
|
-
|
41
|
|||||
|
737-900ER*
|
17
|
13
|
30
|
7
|
37
|
|||||
|
737-900
|
12
|
-
|
12
|
-
|
12
|
|||||
|
737-800*
|
116
|
1
|
117
|
4
|
121
|
|||||
|
737-700
|
36
|
-
|
36
|
-
|
36
|
|||||
|
737-300**
|
23
|
(23)
|
-
|
-
|
-
|
|||||
|
737-500**
|
42
|
(8)
|
34
|
-
|
34
|
|||||
|
Total
Mainline
|
350
|
(17)
|
333
|
17
|
350
|
|||||
|
Regional
|
||||||||||
|
ERJ-145
|
234
|
-
|
234
|
(10)
|
224
|
|||||
|
CRJ200LR
|
17
|
(10)
|
7
|
(7)
|
-
|
|||||
|
Q400
|
15
|
-
|
15
|
6
|
21
|
|||||
|
Q200
|
16
|
-
|
16
|
-
|
16
|
|||||
|
Total
Regional
|
282
|
(10)
|
272
|
(11)
|
261
|
|||||
|
Total
Count
|
632
|
(27)
|
605
|
6
|
611
|
|||||
|
*Final
mix of new 737-800/-900ERs is subject to change
|
||||||||||
|
**Final
mix and quantity of 737-300 / 737-500 exits are subject to
change
|
||||||||||