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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 |
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Pursuant 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): |
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October 1, 2002 |
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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 |
1-10323 |
74-2099724 |
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(State or other jurisdiction |
(Commission File Number) |
(IRS Employer |
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of incorporation) |
Identification No.) |
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1600 Smith Street, Dept. HQSEO, Houston, Texas |
77002 |
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(Address of principal executive offices) |
(Zip Code) |
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(713) 324-2950 |
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(Registrant's telephone number, including area code) |
Item 5. Other Events.
On October 1, 2002, we issued a press release announcing our September performance and our estimated consolidated breakeven load factor for October 2002. The press release is filed herewith as Exhibit 99.1 and is incorporated herein by reference.
Item 7. Financial Statements and Exhibits.
- Exhibits
- Press Release
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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.
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CONTINENTAL AIRLINES, INC. |
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October 1, 2002 |
By /s/ Jennifer L. Vogel |
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Jennifer L. Vogel |
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Vice President and General Counsel |
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EXHIBIT INDEX |
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99.1 |
Press Release |
EXHIBIT 99.1
News Release
Contact:
Corporate CommunicationsHouston: 713.324.5080
Email: corpcomm@coair.com
News archive: continental.com/news/ Address: P.O. Box 4607, Houston, TX 77210-4607
CONTINENTAL AIRLINES REPORTS
SEPTEMBER 2002 PERFORMANCE
HOUSTON, Oct. 1, 2002 - Continental Airlines (NYSE: CAL) today reported a September 2002 systemwide mainline jet load factor of 67.9 percent, 6.5 points above last year's September load factor. For September 2002, Continental reported a September domestic mainline jet load factor of 66.2 percent and an international mainline jet load factor of 70.5 percent. Due to the events of Sept. 11 last year, comparisons of 2002 versus 2001 do not provide a good historical benchmark. In order to provide a more meaningful comparison, the attached preliminary traffic results chart includes a comparison of September 2002 with September 2000 as well.
Continental reported an on-time arrival rate of 86.2 percent and a completion factor of 99.7 percent for its mainline jet operations in September 2002.
In September 2002, Continental flew 4.5 billion mainline jet revenue passenger miles (RPMs) and 6.6 billion mainline jet available seat miles (ASMs) systemwide, resulting in a traffic increase of 23.7 percent and a capacity increase of 11.8 percent as compared to September 2001. Domestic mainline jet traffic was 2.6 billion RPMs in September 2002, up 24.1 percent from September 2001, and September 2002 domestic mainline jet capacity was 3.9 billion ASMs, up 13.0 percent from September last year.
Systemwide September 2002 mainline jet passenger revenue per available seat mile (RASM) is estimated to have increased between 9 and 11 percent compared to September 2001 and decreased between 17 and 19 percent compared to September 2000. For August 2002, RASM declined 2.7 percent as compared to August 2001 and declined 15.2 percent as compared to August 2000. The decline from August to September relative to 2000 is due to weak demand surrounding Sept. 11 of this year. The attached RASM table shows Continental's change in RASM for May through September as compared to the same periods in 2001 and 2000.
SEPTEMBER 2002 PERFORMANCE/PAGE 2
Consolidated breakeven load factor for October 2002 is estimated to be 79 percent. Consolidated breakeven load factor for September 2002 is estimated to have been 81 percent. Actual October 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.ExpressJet Airlines, a subsidiary of Continental Airlines doing business as Continental Express, separately reported a record September load factor of 60.5 percent for September 2002, 8.5 points above last year's September load factor. ExpressJet flew 307.8 million RPMs and 508.4 million ASMs in September 2002, resulting in a traffic increase of 57.8 percent and a capacity increase of 35.6 percent versus September 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.
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SEPTEMBER 2002 PERFORMANCE/PAGE 3
PRELIMINARY TRAFFIC RESULTS
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SEPTEMBER |
2002 |
2001 |
2000 |
Change |
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2002 vs. 2001 |
2002 vs. 2000 |
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REVENUE PASSENGER MILES (000) |
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Domestic |
2,596,891 |
2,093,398 |
3,091,500 |
24.1 Percent |
(16.0) Percent |
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International |
1,864,167 |
1,513,949 |
2,131,577 |
23.1 Percent |
(12.5) Percent |
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Transatlantic |
951,580 |
726,067 |
1,130,762 |
31.1 Percent |
(15.8) Percent |
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Latin America |
451,409 |
440,306 |
569,193 |
2.5 Percent |
(20.7) Percent |
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Pacific |
461,178 |
347,576 |
431,622 |
32.7 Percent |
6.8 Percent |
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Total Jet |
4,461,059 |
3,607,347 |
5,223,078 |
23.7 Percent |
(14.6) Percent |
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ExpressJet |
307,756 |
194,987 |
249,032 |
57.8 Percent |
23.6 Percent |
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AVAILABLE SEAT MILES (000) |
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Domestic |
3,921,605 |
3,469,593 |
4,448,647 |
13.0 Percent |
(11.8) Percent |
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International |
2,644,537 |
2,401,546 |
2,762,464 |
10.1 Percent |
(4.3) Percent |
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Transatlantic |
1,248,155 |
1,082,288 |
1,346,384 |
15.3 Percent |
(7.3) Percent |
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Latin America |
761,355 |
721,005 |
866,390 |
5.6 Percent |
(12.1) Percent |
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Pacific |
635,027 |
598,253 |
549,690 |
6.1 Percent |
15.5 Percent |
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Total Jet |
6,566,141 |
5,871,139 |
7,211,111 |
11.8 Percent |
(8.9) Percent |
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ExpressJet |
508,432 |
374,953 |
423,102 |
35.6 Percent |
20.2 Percent |
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PASSENGER LOAD FACTOR |
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Domestic |
66.2 Percent |
60.3 Percent |
69.5 Percent |
5.9 Points |
(3.3) Points |
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International |
70.5 Percent |
63.0 Percent |
77.2 Percent |
7.5 Points |
(6.7) Points |
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Transatlantic |
76.2 Percent |
67.1 Percent |
84.0 Percent |
9.1 Points |
(7.8) Points |
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Latin America |
59.3 Percent |
61.1 Percent |
65.7 Percent |
(1.8) Points |
(6.4) Points |
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Pacific |
72.6 Percent |
58.1 Percent |
78.5 Percent |
14.5 Points |
(5.9) Points |
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Total Jet |
67.9 Percent |
61.4 Percent |
72.4 Percent |
6.5 Points |
(4.5) Points |
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ExpressJet |
60.5 Percent |
52.0 Percent |
58.9 Percent |
8.5 Points |
1.6 Points |
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CARGO REVENUE TON MILES (000) |
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Total |
76,379 |
62,244 |
93,510 |
22.7 Percent |
(18.3) Percent |
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SEPTEMBER
2002 PERFORMANCE/PAGE 4|
YEAR-TO-DATE |
2002 |
2001 |
Change |
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REVENUE PASSENGER MILES (000) |
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Domestic |
27,447,193 |
29,722,513 |
(7.7) Percent |
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International |
17,994,149 |
18,650,507 |
(3.5) Percent |
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Transatlantic |
8,081,955 |
8,290,217 |
(2.5) Percent |
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Latin America |
5,807,142 |
6,091,513 |
(4.7) Percent |
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Pacific |
4,105,052 |
4,268,777 |
(3.8) Percent |
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Total Jet |
45,441,342 |
48,373,020 |
(6.1) Percent |
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ExpressJet |
2,874,976 |
2,540,044 |
13.2 Percent |
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AVAILABLE SEAT MILES (000) |
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Domestic |
36,884,478 |
40,974,255 |
(10.0) Percent |
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International |
23,666,145 |
25,290,743 |
(6.4) Percent |
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Transatlantic |
10,266,493 |
10,891,581 |
(5.7) Percent |
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Latin America |
7,998,608 |
8,339,318 |
(4.1) Percent |
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Pacific |
5,401,044 |
6,059,844 |
(10.9) Percent |
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Total Jet |
60,550,623 |
66,264,998 |
(8.6) Percent |
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ExpressJet |
4,555,079 |
4,082,989 |
11.6 Percent |
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PASSENGER LOAD FACTOR |
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Domestic |
74.4 Percent |
72.5 Percent |
1.9 Points |
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International |
76.0 Percent |
73.7 Percent |
2.3 Points |
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Transatlantic |
78.7 Percent |
76.1 Percent |
2.6 Points |
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Latin America |
72.6 Percent |
73.0 Percent |
(0.4) Points |
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Pacific |
76.0 Percent |
70.4 Percent |
5.6 Points |
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Total Jet |
75.0 Percent |
73.0 Percent |
2.0 Points |
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ExpressJet |
63.1 Percent |
62.2 Percent |
0.9 Points |
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CARGO REVENUE TON MILES (000) |
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Total |
664,080 |
714,825 |
(7.1) Percent |
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SEPTEMBER 2002 PERFORMANCE/PAGE 5
PRELIMINARY OPERATIONAL AND FINANCIAL RESULTS
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SEPTEMBER |
2002 |
2001 |
Change |
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On-Time Performance1 |
86.2% |
65.8% |
20.4 Points |
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Completion Factor2 |
99.7% |
81.2% |
18.5 Points |
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YEAR-TO-DATE |
2002 |
2001 |
Change |
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On-Time Performance1 |
84.8% |
79.3% |
5.5 Points |
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Completion Factor2 |
99.8% |
97.1% |
2.7 Points |
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August 2002 actual consolidated breakeven load factor3 |
74.7 Percent |
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September 2002 estimated year-over-year RASM change |
9-11 Percent |
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September 2002 estimated average price per gallon of fuel,excluding fuel taxes |
75 Cents |
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September 2002 estimated consolidated breakeven load factor3 |
81 Percent |
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September 2002 actual consolidated load factor4 |
67.4 Percent |
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October 2002 estimated consolidated breakeven load factor3 |
79 Percent |
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YEAR-OVER-YEAR RASM 5 |
2002 vs. 2001 |
2002 vs. 2000 |
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May |
(6.3) Percent |
(15.1) Percent |
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June |
(5.5) Percent |
(15.5) Percent |
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July |
(4.0) Percent |
(13.5) Percent |
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August |
(2.7) Percent |
(15.2) Percent |
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September (estimated) |
9-11 Percent |
(17-19) Percent |
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1
Department of Transportation Arrivals within 14 minutes2
System Mileage Completion Percentage3
Consolidated load factor (including Continental Airlines and Continental Express) needed to breakeven on aconsolidated net income basis
4
Includes Continental Airlines and Continental Express5
Continental Airlines has been releasing RASM data since May 2001
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