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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 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 January 2, 2007, we issued a press release announcing our December 2006 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 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 2, 2007

By  /s/ Chris Kenny

 

      Chris Kenny

 

Vice President and Controller

 

 
   
   
   

 

 

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 2006

OPERATIONAL PERFORMANCE

HOUSTON, Jan. 2, 2007 - Continental Airlines (NYSE: CAL) today reported a December consolidated (mainline plus regional) load factor of 79.5 percent, 1.8 points above the December 2005 consolidated load factor. The carrier reported a mainline load factor of 79.9 percent, 1.9 points above the December 2005 mainline load factor, and a domestic mainline load factor of 81.8 percent, 2.1 points above December 2005. All three were records for the month. In addition, the airline had an international mainline load factor of 77.5 percent, 1.7 points above December 2005.

During the month, Continental recorded a U.S. Department of Transportation on-time arrival rate of 73.4 percent and a December mainline completion factor of 99.6 percent.

In December 2006, Continental flew 7.5 billion consolidated revenue passenger miles (RPMs) and 9.4 billion consolidated available seat miles (ASMs), resulting in a traffic increase of 6.9 percent and a capacity increase of 4.4 percent as compared to December 2005. In December 2006, Continental flew 6.6 billion mainline RPMs and 8.3 billion mainline ASMs, resulting in a mainline traffic increase of 7.1 percent and a 4.6 percent increase in mainline capacity as compared to December 2005. Domestic mainline traffic was 3.7 billion RPMs in December 2006, up 5.4 percent from December 2005, and domestic mainline capacity was 4.5 billion ASMs, up 2.8 percent from December 2005.

For December 2006, consolidated passenger revenue per available seat mile (RASM) is estimated to have increased between 3.5 and 4.5 percent compared to December 2005, while mainline passenger RASM is estimated to have increased between 5.5 and 6.5 percent compared to December 2005. For November 2006, consolidated passenger RASM increased 3.3 percent compared to November 2005, while mainline passenger RASM increased 4.6 percent from November 2005.

Continental estimates fourth quarter consolidated RASM to have increased between 4.1 and 4.4 percent compared to the fourth quarter 2005, and fourth quarter cost per available seat mile (CASM) to be in line with its most recently provided guidance. As a result, the company expects to report a modest loss for the quarter, excluding special charges.

Continental ended the fourth quarter of 2006 with unrestricted cash and short-term investments of approximately $2.48 billion.

December 2006 sales at continental.com increased 19.0 percent over December 2005.

Continental's regional operations had a record December load factor of 77.0 percent, 1.6 points above the December 2005 load factor. Regional RPMs were 864.7 million and regional ASMs were 1,122.5 million in December 2006, resulting in a traffic increase of 5.8 percent and a capacity increase of 3.6 percent versus December 2005.

Continental Airlines is the world's fifth largest airline. Continental, together with Continental Express and Continental Connection, has more than 3,200 daily departures throughout the Americas, Europe and Asia, serving 151 domestic and 136 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 61 million passengers per year. Continental consistently earns awards and critical acclaim for both its operation and its corporate culture.

In 2006, Continental Airlines won its sixth 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 2006 Airline Satisfaction Index SurveySM. For the third consecutive year, FORTUNE magazine named Continental the No. 1 Most Admired Global Airline on its 2006 list of Most Admired Global Companies. Continental was also named the No. 1 airline on the publication's 2006 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 third year in a row, and "Best Executive/Business Class" for the fourth 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 2005 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, disruptions in its computer systems, and the seasonal nature of the airline busine ss. 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

DECEMBER

2006

2005

Change

REVENUE PASSENGER MILES (000)

Domestic

3,692,649

3,502,067

5.4

Percent

International

2,924,105

2,678,063

9.2

Percent

Transatlantic

1,388,403

1,247,101

11.3

Percent

Latin America

932,655

834,568

11.8

Percent

Pacific

603,047

596,394

1.1

Percent

Mainline

6,616,754

6,180,130

7.1

Percent

Regional

864,673

817,187

5.8

Percent

Consolidated

7,481,427

6,997,317

6.9

Percent

AVAILABLE SEAT MILES (000)

Domestic

4,513,702

4,392,163

2.8

Percent

International

3,771,209

3,531,177

6.8

Percent

Transatlantic

1,760,431

1,598,923

10.1

Percent

Latin America

1,206,874

1,136,085

6.2

Percent

Pacific

803,904

796,169

1.0

Percent

Mainline

8,284,911

7,923,340

4.6

Percent

Regional

1,122,500

1,083,351

3.6

Percent

Consolidated

9,407,411

9,006,691

4.4

Percent

PASSENGER LOAD FACTOR

Domestic

81.8 Percent

79.7 Percent

2.1

Points

International

77.5 Percent

75.8 Percent

1.7

Points

Transatlantic

78.9 Percent

78.0 Percent

0.9

Points

Latin America

77.3 Percent

73.5 Percent

3.8

Points

Pacific

75.0 Percent

74.9 Percent

0.1

Points

Mainline

79.9 Percent

78.0 Percent

1.9

Points

Regional

77.0 Percent

75.4 Percent

1.6

Points

Consolidated

79.5 Percent

77.7 Percent

1.8

Points

ONBOARD PASSENGERS

Mainline

4,126,385

3,918,862

5.3

Percent

Regional

1,520,399

1,431,241

6.2

Percent

Consolidated

5,646,784

5,350,103

5.5

Percent

CARGO REVENUE TON MILES (000)

Total

94,381

91,771

2.8

Percent

PRELIMINARY TRAFFIC RESULTS

YEAR-TO-DATE

2006

2005

Change

REVENUE PASSENGER MILES (000)

Domestic

43,265,353

39,940,548

8.3

Percent

International

35,923,404

31,320,573

14.7

Percent

Transatlantic

17,849,226

15,505,590

15.1

Percent

Latin America

10,635,518

9,033,775

17.7

Percent

Pacific

7,438,660

6,781,208

9.7

Percent

Mainline

79,188,757

71,261,121

11.1

Percent

Regional

10,324,683

8,937,931

15.5

Percent

Consolidated

89,513,440

80,199,052

11.6

Percent

AVAILABLE SEAT MILES (000)

Domestic

51,739,060

49,215,120

5.1

Percent

International

45,927,523

40,430,681

13.6

Percent

Transatlantic

22,655,069

19,387,805

16.9

Percent

Latin America

13,554,639

11,997,375

13.0

Percent

Pacific

9,717,815

9,045,501

7.4

Percent

Mainline

97,666,583

89,645,801

8.9

Percent

Regional

13,251,072

11,972,886

10.7

Percent

Consolidated

110,917,655

101,618,687

9.2

Percent

PASSENGER LOAD FACTOR

Domestic

83.6 Percent

81.2 Percent

2.4

Points

International

78.2 Percent

77.5 Percent

0.7

Points

Transatlantic

78.8 Percent

80.0 Percent

-1.2

Points

Latin America

78.5 Percent

75.3 Percent

3.2

Points

Pacific

76.5 Percent

75.0 Percent

1.5

Points

Mainline

81.1 Percent

79.5 Percent

1.6

Points

Regional

77.9 Percent

74.7 Percent

3.2

Points

Consolidated

80.7 Percent

78.9 Percent

1.8

Points

ONBOARD PASSENGERS

Mainline

48,782,037

44,939,634

8.6

Percent

Regional

18,330,783

16,076,042

14.0

Percent

Consolidated

67,112,820

61,015,676

10.0

Percent

CARGO REVENUE TON MILES (000)

Total

1,076,472

1,020,350

5.5

Percent

 

 

PRELIMINARY OPERATIONAL AND FINANCIAL RESULTS

DECEMBER

2006

2005

Change

On-Time Performance 1

73.4%

71.0%

2.4

Points

Completion Factor 2

99.6%

99.6%

-  

Points

November 2006 year-over-year consolidated RASM change

3.3

Percent

November 2006 year-over-year mainline RASM change

4.6

Percent

December 2006 estimated year-over-year consolidated RASM change

3.5-4.5

Percent

December 2006 estimated year-over-year mainline RASM change

5.5-6.5

Percent

December 2006 estimated average price per gallon of fuel, including fuel taxes

1.99

Dollars

Forth Quarter 2006 estimated average price per gallon of fuel, including fuel taxes

2.01

Dollars

1 Department of Transportation Arrivals within 14 minutes

2 Mainline Mileage Completion Percentage

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