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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): October 1, 2008

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 October 1, 2008, we issued a press release announcing our September 2008 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 September 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.

 

October 1, 2008

By  /s/ Lori A. Gobillot

      Lori A. Gobillot

Staff Vice President and Assistant General Counsel

 

 

 

 

 

 

 

 

 

 

 

 

EXHIBIT INDEX

99.1

Press Release for September 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 SEPTEMBER 2008

OPERATIONAL PERFORMANCE

HOUSTON, Oct. 1, 2008 - Continental Airlines (NYSE: CAL) today reported a September consolidated (mainline plus regional) load factor of 76.5 percent, 2.5 points below the September 2007 consolidated load factor, and a mainline load factor of 77.4 percent, 1.8 points below the September 2007 mainline load factor. In addition, the carrier reported a domestic mainline September load factor of 78.5 percent, 2.6 points below the September 2007 domestic mainline load factor, and an international mainline load factor of 76.3 percent, 0.9 points below September 2007.

During the month, Continental recorded a U.S. Department of Transportation (DOT) on-time arrival rate of 82.1 percent and a mainline segment completion factor of 94.4 percent. Continental's operational performance was negatively impacted by Hurricane Ike in mid-September.

In September 2008, Continental flew 6.5 billion consolidated revenue passenger miles (RPMs) and 8.5 billion consolidated available seat miles (ASMs), resulting in a consolidated traffic decrease of 10.9 percent and a capacity decrease of 8.1 percent as compared to September 2007. In September 2008, Continental flew 5.8 billion mainline RPMs and 7.5 billion mainline ASMs, resulting in a mainline traffic decrease of 10.9 percent and a mainline capacity decrease of 8.8 percent as compared to September 2007. Domestic mainline traffic was 2.9 billion RPMs in September 2008, down 16.2 percent from September 2007, and domestic mainline capacity was 3.7 billion ASMs, down 13.4 percent from September 2007.

For September 2008, consolidated passenger revenue per available seat mile (RASM) is estimated to have increased between 8.0 and 9.0 percent compared to September 2007, while mainline passenger RASM is estimated to have increased between 9.0 and 10.0 percent compared to September 2007. For August 2008, consolidated passenger RASM increased 5.3 percent compared to August 2007, while mainline passenger RASM increased 6.1 percent compared to August 2007.

Continental ended the third quarter with an unrestricted cash, cash equivalents and short-term investments balance of approximately $2.76 billion. This balance excludes all student loan-related auction rate securities.

Continental's regional operations had a September load factor of 69.5 percent, 7.0 points below the September 2007 regional load factor. Regional RPMs were 665.3 million and regional ASMs were 957.7 million in September 2008, resulting in a traffic decrease of 10.6 percent and a capacity decrease of 1.5 percent versus September 2007.

Continental Airlines is the world's fifth largest airline. Continental, together with Continental Express and Continental Connection, has more than 2,500 daily departures throughout the Americas, Europe and Asia, serving 122 domestic and 120 international destinations. More than 550 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 69 million passengers per year.

Continental consistently earns awards and critical acclaim for both its operation and its corporate culture. For the fifth consecutive year, FORTUNE magazine named Continental the No. 1 World's Most Admired Airline on its 2008 list of World's Most Admired Companies. For more company information, go to 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 2007 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 cost of aircraft fuel, the company's 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, indu stry 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.

 

PRELIMINARY TRAFFIC RESULTS

SEPTEMBER

2008

2007

Change

REVENUE PASSENGER MILES (000)

Domestic

2,889,642

3,448,145

-16.2

Percent

International

2,939,376

3,097,052

-5.1

Percent

Transatlantic

1,779,464

1,814,237

-1.9

Percent

Latin America

591,423

671,055

-11.9

Percent

Pacific

568,489

611,760

-7.1

Percent

Mainline

5,829,018

6,545,197

-10.9

Percent

Regional

665,285

743,920

-10.6

Percent

Consolidated

6,494,303

7,289,117

-10.9

Percent

AVAILABLE SEAT MILES (000)

Domestic

3,678,834

4,250,123

-13.4

Percent

International

3,849,950

4,009,227

-4.0

Percent

Transatlantic

2,338,025

2,303,334

1.5

Percent

Latin America

774,378

898,551

-13.8

Percent

Pacific

737,547

807,342

-8.6

Percent

Mainline

7,528,784

8,259,350

-8.8

Percent

Regional

957,659

972,306

-1.5

Percent

Consolidated

8,486,443

9,231,656

-8.1

Percent

PASSENGER LOAD FACTOR

Domestic

78.5 Percent

81.1 Percent

-2.6

Points

International

76.3 Percent

77.2 Percent

-0.9

Points

Transatlantic

76.1 Percent

78.8 Percent

-2.7

Points

Latin America

76.4 Percent

74.7 Percent

1.7

Points

Pacific

77.1 Percent

75.8 Percent

1.3

Points

Mainline

77.4 Percent

79.2 Percent

-1.8

Points

Regional

69.5 Percent

76.5 Percent

-7.0

Points

Consolidated

76.5 Percent

79.0 Percent

-2.5

Points

ONBOARD PASSENGERS

Mainline

3,162,971

3,751,807

-15.7

Percent

Regional

1,239,585

1,383,022

-10.4

Percent

Consolidated

4,402,556

5,134,829

-14.3

Percent

CARGO REVENUE TON MILES (000)

Total

78,208

86,687

-9.8

Percent

PRELIMINARY TRAFFIC RESULTS

YEAR-TO-DATE

2008

2007

Change

REVENUE PASSENGER MILES (000)

Domestic

33,059,679

34,292,569

-3.6

Percent

International

31,198,331

29,746,500

4.9

Percent

Transatlantic

16,593,207

15,282,538

8.6

Percent

Latin America

9,173,141

8,672,677

5.8

Percent

Pacific

5,431,983

5,791,285

-6.2

Percent

Mainline

64,258,010

64,039,069

0.3

Percent

Regional

7,603,772

7,456,823

2.0

Percent

Consolidated

71,861,782

71,495,892

0.5

Percent

AVAILABLE SEAT MILES (000)

Domestic

39,572,803

40,646,586

-2.6

Percent

International

39,551,824

37,045,626

6.8

Percent

Transatlantic

21,367,474

19,032,122

12.3

Percent

Latin America

11,109,442

10,654,600

4.3

Percent

Pacific

7,074,908

7,358,904

-3.9

Percent

Mainline

79,124,627

77,692,212

1.8

Percent

Regional

9,937,632

9,495,359

4.7

Percent

Consolidated

89,062,259

87,187,571

2.2

Percent

PASSENGER LOAD FACTOR

Domestic

83.5 Percent

84.4 Percent

-0.9

Points

International

78.9 Percent

80.3 Percent

-1.4

Points

Transatlantic

77.7 Percent

80.3 Percent

-2.6

Points

Latin America

82.6 Percent

81.4 Percent

1.2

Point

Pacific

76.8 Percent

78.7 Percent

-1.9

Points

Mainline

81.2 Percent

82.4 Percent

-1.2

Points

Regional

76.5 Percent

78.5 Percent

-2.0

Points

Consolidated

80.7 Percent

82.0 Percent

-1.3

Points

ONBOARD PASSENGERS

Mainline

37,714,489

38,649,351

-2.4

Percent

Regional

13,794,791

13,549,347

1.8

Percent

Consolidated

51,509,280

52,198,698

-1.3

Percent

CARGO REVENUE TON MILES (000)

Total

770,009

757,688

1.6

Percent

 

 

PRELIMINARY OPERATIONAL AND FINANCIAL RESULTS

SEPTEMBER

2008

2007

Change

On-Time Performance 1

82.1%

88.0%

(5.9)

Points

Completion Factor 2

94.4%

99.8%

(5.4)

Points

August 2008 year-over-year consolidated RASM change

5.3

Percent

August 2008 year-over-year mainline RASM change

6.1

Percent

September 2008 estimated year-over-year consolidated RASM change

8.0 - 9.0

Percent

September 2008 estimated year-over-year mainline RASM change

9.0 - 10.0

Percent

September 2008 estimated average price per gallon of fuel, including fuel taxes

3.77

Dollars

Third Quarter 2008 estimated average price per gallon of fuel, including fuel taxes

3.86

Dollars

1 Department of Transportation Arrivals within 14 minutes

2 Mainline Segment Completion Percentage

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