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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): January 3, 2006

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 January 3, 2006, we issued a press release announcing our December 2005 performance and our estimated consolidated breakeven load factor for January. 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 December 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.

 

 

January 3, 2006

By   /s/ Jennifer L. Vogel

       Jennifer L. Vogel

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

 

 

 

 

 

 

 
 

        
 

       
     

 

 

EXHIBIT INDEX

99.1

Press Release for December 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 DECEMBER 2005

OPERATIONAL PERFORMANCE

HOUSTON, Jan. 3, 2006 - Continental Airlines (NYSE: CAL) today reported a December consolidated (mainline plus regional) load factor of 77.7 percent, 1.2 points above last year's December consolidated load factor. The carrier reported a mainline load factor of 78.0 percent, 0.7 points above the December 2004 mainline load factor, and a domestic mainline load factor of 79.7 percent, 2.6 points above December 2004. All three were records for December. In addition, the airline had an international mainline December load factor of 75.8 percent, 1.7 points below December 2004.

During the month, Continental recorded a U.S. Department of Transportation on-time arrival rate of 71.0 percent and a systemwide mainline completion factor of 99.7 percent.

In December 2005, Continental flew 7.0 billion consolidated revenue passenger miles (RPMs) and 9.0 billion consolidated available seat miles (ASMs), resulting in a traffic increase of 13.1 percent and a capacity increase of 11.4 percent as compared to December 2004. In December 2005, Continental mainline flew 6.2 billion mainline RPMs and 7.9 billion mainline ASMs, resulting in a mainline traffic increase of 11.9 percent and a mainline capacity increase of 10.9 percent as compared to December 2004. Domestic mainline traffic was 3.5 billion RPMs in December 2005, up 9.2 percent from December 2004, and domestic mainline capacity was 4.4 billion ASMs, up 5.7 percent from December 2004.

For the month of December 2005, consolidated passenger revenue per available seat mile (RASM) is estimated to have increased between 7.0 and 8.0 percent compared to December 2004, while mainline passenger RASM is estimated to have increased between 5.5 and 6.5 percent compared to December 2004.  For November 2005, consolidated passenger RASM increased 10.3 percent compared to November 2004 while mainline passenger RASM increased 9.1 percent from November 2004.

Continental ended the year with unrestricted cash and short-term investments of approximately $1.95 billion.

Continental's regional operations (Continental Express) had a record December load factor of 75.4 percent, 4.6 points above last year's December load factor. Regional RPMs were 817.2 million and regional ASMs were 1,083.3 million in December 2005, resulting in a traffic increase of 23.1 percent and a capacity increase of 15.6 percent versus December 2004.

Continental Airlines is the world's sixth-largest airline. Continental, together with Continental Express and Continental Connection, has more than 3,000 daily departures throughout the Americas, Europe and Asia, serving 151 domestic and 133 international destinations, more than any other carrier in the world. More than 400 additional points are served via SkyTeam alliance airlines, which include Aeromexico, Air France, Alitalia, CSA Czech Airlines, Delta Air Lines, KLM, Korean Air and Northwest Airlines.  With over 42,000 employees, Continental has hubs serving New York, Houston, Cleveland and Guam, and together with Continental Express, carries approximately 60 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 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 obligation to public ly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this press release.

 

PRELIMINARY TRAFFIC RESULTS


DECEMBER


2005


2004


Change


REVENUE PASSENGER MILES (000)

Domestic

3,502,067

3,206,641

9.2

Percent

International

2,678,063

2,315,987

15.6

Percent

Transatlantic

1,247,101

1,060,417

17.6

Percent

Latin America

834,568

747,915

11.6

Percent

Pacific

596,394

507,655

17.5

Percent

Mainline

6,180,130

5,522,627

11.9

Percent

Regional

817,187

663,756

23.1

Percent

Consolidated

6,997,317

6,186,384

13.1

Percent


AVAILABLE SEAT MILES (000)

Domestic

4,392,147

4,157,142

5.7

Percent

International

3,531,185

2,987,981

18.2

Percent

Transatlantic

1,598,923

1,305,942

22.4

Percent

Latin America

1,136,087

1,013,296

12.1

Percent

Pacific

796,175

668,744

19.1

Percent

Mainline

7,923,332

7,145,123

10.9

Percent

Regional

1,083,344

937,323

15.6

Percent

Consolidated

9,006,676

8,082,445

11.4

Percent


PASSENGER LOAD FACTOR

Domestic

79.7 Percent

77.1 Percent

2.6

Points

International

75.8 Percent

77.5 Percent

-1.7

Points

Transatlantic

78.0 Percent

81.2 Percent

-3.2

Points

Latin America

73.5 Percent

73.8 Percent

-0.3

Points

Pacific

74.9 Percent

75.9 Percent

-1.0

Points

Mainline

78.0 Percent

77.3 Percent

0.7

Points

Regional

75.4 Percent

70.8 Percent

4.6

Points

Consolidated

77.7 Percent

76.5 Percent

1.2

Points

ONBOARD PASSENGERS

Mainline

3,918,862

3,623,134

8.2

Percent

Regional

1,431,241

1,200,922

19.2

Percent

Consolidated

5,350,103

4,824,056

10.9

Percent

CARGO REVENUE TON MILES (000)

Total

91,771

93,796

-2.2

Percent

 

PRELIMINARY TRAFFIC RESULTS


FULL YEAR


2005


2004


Change


REVENUE PASSENGER MILES (000)

Domestic

39,940,548

37,921,992

5.3

Percent

International

31,320,573

27,812,409

12.6

Percent

Transatlantic

15,505,590

13,436,769

15.4

Percent

Latin America

9,033,775

8,524,283

6.0

Percent

Pacific

6,781,208

5,851,357

15.9

Percent

Mainline

71,261,121

65,734,401

8.4

Percent

Regional

8,937,931

7,417,383

20.5

Percent

Consolidated

80,199,052

73,151,784

9.6

Percent


AVAILABLE SEAT MILES (000)

Domestic

49,215,104

48,976,441

0.5

Percent

International

40,430,689

35,708,913

13.2

Percent

Transatlantic

19,387,805

16,624,222

16.6

Percent

Latin America

11,997,377

11,573,276

3.7

Percent

Pacific

9,045,507

7,511,415

20.4

Percent

Mainline

89,645,793

84,685,354

5.9

Percent

Regional

11,972,879

10,410,026

15.0

Percent

Consolidated

101,618,672

95,095,380

6.9

Percent

PASSENGER LOAD FACTOR

Domestic

81.2 Percent

77.4 Percent

3.8

Points

International

77.5 Percent

77.9 Percent

-0.4

Points

Transatlantic

80.0 Percent

80.8 Percent

-0.8

Points

Latin America

75.3 Percent

73.7 Percent

1.6

Points

Pacific

75.0 Percent

77.9 Percent

-2.9

Points

Mainline

79.5 Percent

77.6 Percent

1.9

Points

Regional

74.7 Percent

71.3 Percent

3.4

Points

Consolidated

78.9 Percent

76.9 Percent

2.0

Points

ONBOARD PASSENGERS

Mainline

44,939,634

42,742,858

5.1

Percent

Regional

16,076,042

13,739,036

17.0

Percent

Consolidated

61,015,676

56,481,894

8.0

Percent

CARGO REVENUE TON MILES (000)

Total

1,020,350

1,028,409

-0.8

Percent

 

 

PRELIMINARY OPERATIONAL AND FINANCIAL RESULTS


DECEMBER


2005


2004


Change

On-Time Performance 1

71.0%

75.7%

(4.7)

Points

Completion Factor 2

99.7%

99.7%

-   

Points


FULL YEAR


2005


2004


Change

On-Time Performance 1

76.9%

78.9%

(2.0)

Points

Completion Factor 2

99.4%

99.6%

(0.2)

Points



November 2005 consolidated breakeven load factor 3



81.0



Percent

November 2005 year-over-year consolidated RASM change

10.3

Percent

November 2005 year-over-year mainline RASM change

9.1

Percent

December 2005 estimated year-over-year consolidated RASM change

7.0-8.0

Percent

December 2005 estimated year-over-year mainline RASM change

5.5-6.5

Percent

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

1.84

Dollars

Fourth Quarter 2005 estimated average price per gallon of fuel, including
  fuel taxes


2.08


Dollars

December 2005 estimated consolidated breakeven load factor 3,4

70

Percent

December 2005 actual consolidated load factor 5

77.7

Percent

January 2006 estimated consolidated breakeven load factor 3

86

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 Gain related to the sale of a portion of our equity interest in Copa Holdings, S.A., parent company of Copa Airlines,

  in connection with the initial public offering of their shares offset by non-cash settlement charge related to the

pilot pension plan reduced consolidated breakeven load factor by 9 points.

5 Includes Continental Airlines and Continental Express

###