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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 3, 2002

 

 

 

CONTINENTAL AIRLINES, INC.

(Exact name of registrant as specified in its charter)

 

Delaware

1-10323

74-2099724

(State or other jurisdiction

(Commission File Number)

(IRS Employer

of incorporation)

  

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)

Item 5. Other Events.

On September 3, 2002, we issued a press release announcing our August performance and our estimated consolidated breakeven load factor for September 2002. The press release is filed herewith as Exhibit 99.1 and is incorporated herein by reference.

Item 7. Financial Statements and Exhibits.

    1. Exhibits

      1. Press Release

 

 

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 3, 2002

By /s/ Jennifer L. Vogel                           
 

Jennifer L. Vogel
 

Vice President and General Counsel

 

 

EXHIBIT INDEX

 

99.1

Press Release

 

 

 

 
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 AUGUST 2002 PERFORMANCE

HOUSTON, Sept. 3, 2002 - Continental Airlines (NYSE: CAL) today reported an August 2002 systemwide mainline jet load factor of 79.1 percent, 1.0 point above last year's August load factor. For August 2002, Continental reported a record August domestic mainline jet load factor of 78.6 percent and an international mainline jet load factor of 79.8 percent.

Continental reported an on-time arrival rate of 83.3 percent and a completion factor of 99.9 percent for its mainline jet operations in August 2002.

In August 2002, Continental flew 5.8 billion mainline jet revenue passenger miles (RPMs) and 7.3 billion mainline jet available seat miles (ASMs) systemwide, resulting in a traffic decrease of 9.5 percent and a capacity decrease of 10.6 percent as compared to August 2001. Domestic mainline jet traffic was 3.4 billion RPMs in August 2002, down 13.0 percent from August 2001, and August 2002 domestic mainline jet capacity was 4.4 billion ASMs, down 14.5 percent from August last year.

Systemwide August 2002 mainline jet passenger revenue per available seat mile (RASM) is estimated to have decreased between 2 and 4 percent compared to August 2001 as a result of lower year-over-year yields, slightly offset by higher load factors. For July 2002, RASM declined 4.0 percent as compared to July 2001.

Consolidated breakeven load factor for September 2002 is estimated to be 87 percent, 9 points higher than August 2002 due to September seasonality. Actual consolidated breakeven load factor may vary significantly from this estimate 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.

 

 

AUGUST 2002 PERFORMANCE/PAGE 2

ExpressJet Airlines, a subsidiary of Continental Airlines doing business as Continental Express, separately reported a record August load factor of 66.4 percent for August 2002, 0.4 points above last year's August load factor. ExpressJet flew 366.6 million RPMs and 551.9 million ASMs in August 2002, resulting in a traffic increase of 6.7 percent and a capacity increase of 6.1 percent versus August 2001.

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 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 2001 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 and industry conditions including the demand for air travel, airline pricing environment and industry capacity decisions, regulatory matters and the seasonal nature of the airline business.

-more-

AUGUST 2002 PERFORMANCE /PAGE 3

PRELIMINARY TRAFFIC RESULTS

AUGUST

  

2002

2001

Change

REVENUE PASSENGER MILES (000)

    
 

Domestic

3,425,400

3,939,502

(13.0) Percent
         
 

International

2,332,904

2,421,682

(3.7) Percent
 

Transatlantic

1,103,612

1,055,590

4.5  Percent
 

Latin America

714,415

777,396

(8.1) Percent
 

Pacific

514,876

588,696

(12.5) Percent
         
 

Total Jet

5,758,303

6,361,185

(9.5) Percent
         
 

ExpressJet

366,578

343,513

6.7  Percent
         

AVAILABLE SEAT MILES (000)

    
 

Domestic

4,358,739

5,099,343

(14.5) Percent
         
 

International

2,923,039

3,044,317

(4.0) Percent
 

Transatlantic

1,333,205

1,322,776

0.8  Percent
 

Latin America

932,302

969,244

(3.8) Percent
 

Pacific

657,532

752,296

(12.6) Percent
         
 

Total Jet

7,281,778

8,143,659

(10.6) Percent
         
 

ExpressJet

551,865

520,172

6.1  Percent
         

PASSENGER LOAD FACTOR

    
 

Domestic

78.6 Percent

77.3 Percent

1.3  Points
         
 

International

79.8 Percent

79.5 Percent

0.3  Points
 

Transatlantic

82.8 Percent

79.8 Percent

3.0  Points
 

Latin America

76.6 Percent

80.2 Percent

(3.6) Points
 

Pacific

78.3 Percent

78.3 Percent

-  Points
         
 

Total Jet

79.1 Percent

78.1 Percent

1.0  Points
         
 

ExpressJet

66.4 Percent

66.0 Percent

0.4  Points
         

CARGO REVENUE TON MILES (000)

    
 

Total

76,608

77,683

(1.4) Percent

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AUGUST 2002 PERFORMANCE/PAGE 4

YEAR-TO-DATE

  

2002

2001

Change

REVENUE PASSENGER MILES (000)

    
 

Domestic

24,850,344

27,629,115

(10.1) Percent
         
 

International

16,129,546

17,136,558

(5.9) Percent
 

Transatlantic

7,130,345

7,564,150

(5.7) Percent
 

Latin America

5,355,768

5,651,207

(5.2) Percent
 

Pacific

3,643,433

3,921,201

(7.1) Percent
         
 

Total Jet

40,979,890

44,765,673

(8.5) Percent
         
 

ExpressJet

2,567,230

2,345,057

9.5  Percent
         

AVAILABLE SEAT MILES (000)

    
 

Domestic

32,962,873

37,504,661

(12.1) Percent
         
 

International

21,021,106

22,889,196

(8.2) Percent
 

Transatlantic

9,018,345

9,809,293

(8.1) Percent
 

Latin America

7,237,254

7,618,312

(5.0) Percent
 

Pacific

4,765,507

5,461,591

(12.7) Percent
         
 

Total Jet

53,983,979

60,393,857

(10.6) Percent
         
 

ExpressJet

4,046,647

3,708,036

9.1  Percent
         

PASSENGER LOAD FACTOR

    
 

Domestic

75.4 Percent

73.7 Percent

1.7  Points
         
 

International

76.7 Percent

74.9 Percent

1.8  Points
 

Transatlantic

79.1 Percent

77.1 Percent

2.0 Points
 

Latin America

74.0 Percent

74.2 Percent

(0.2) Points
 

Pacific

76.5 Percent

71.8 Percent

4.7  Points
         
 

Total Jet

75.9 Percent

74.1 Percent

1.8  Points
         
 

ExpressJet

63.4 Percent

63.2 Percent

0.2  Points
         

CARGO REVENUE TON MILES (000)

    
 

Total

587,710

652,581

(9.9) Percent

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AUGUST 2002 PERFORMANCE/PAGE 5

PRELIMINARY OPERATIONAL AND FINANCIAL RESULTS

AUGUST

  

2002

2001

Change

On-Time Performance1

83.3%

77.7%

5.6  Points
         

Completion Factor2

99.9%

99.2%

0.7  Points
       
         

YEAR-TO-DATE

  

2002

2001

Change

On-Time Performance1

84.6%

80.9%

3.7  Points
         

Completion Factor2

99.8%

98.9%

0.9  Points
       
         

July 2002 actual consolidated breakeven load factor3

78.2  Percent
         

August 2002 estimated year-over-year RASM change

(2-4) Percent
         

August 2002 estimated average price per gallon of fuel,

                           excluding fuel taxes

71 Cents
         

August 2002 estimated consolidated breakeven load factor3

78.0  Percent
         

August 2002 actual consolidated load factor4

78.2  Percent
         

September 2002 estimated consolidated breakeven load factor3

87.0  Percent
         

1 Department of Transportation Arrivals within 14 minutes

2 System Mileage Completion Percentage

3 Consolidated load factor (including Continental Airlines and Continental Express) needed to breakeven on a

consolidated net income basis

4 Includes Continental Airlines and Continental Express

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