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):
June 4, 2001
CONTINENTAL AIRLINES, INC.
(Exact name of registrant as specified in its charter)
Delaware |
0-09781 |
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 7. Financial Statements and Exhibits.
Item 9. Regulation FD Disclosure.
The Company is furnishing herewith a letter being provided to certain investors and financial analysts which contains data regarding aircraft financing, updated guidelines regarding certain operating and financial statistics for the second quarter and full year 2001 and the Company's fleet plan. The letter is attached as Exhibit 99.1 which is included herein.
The Company is also furnishing herewith certain data being presented by certain of its executive officers at a conference (the "Conference") on June 5, 2001. The presentation is attached as Exhibit 99.2 which is included herein. Beginning Tuesday, June 5, 2001 an audio webcast of their remarks at the Conference and accompanying graphic presentation will be made available under our Investor Relations - Investor Presentation section at Continental's corporate website at http://www.continental.com/corporate.
The information presented contains forward looking statements and certain assumptions upon which such forward looking statements are in part based. Numerous important factors, including those factors identified as Risk Factors in the Company's Annual Report on Form 10-K for the year ended December 31, 2000 filed with the Securities and Exchange Commission, which factors are incorporated herein by reference, and the fact that the assumptions set forth below could prove incorrect, could cause actual results to differ materially from those contained in such forward looking statements.
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.
By /s/ Jennifer L. Vogel
Jennifer L. Vogel
Vice President
and General Counsel
June 4, 2001
EXHIBIT INDEX
Diane Dayhoff
June 4, 2001
Dear Investors and Analysts:
As many of you may know, we recently announced several senior management changes: Larry Kellner has been named our new President, CD McLean was elected Executive VP & COO and Jeff Smisek was elected Executive VP - Corporate. Two Senior Vice Presidents have been named to head the Company's finance operations -- Jeff Misner, Senior VP - Finance and Gerry Laderman, Senior VP - Finance and Treasurer. Jeff Misner will oversee the areas of Financial Planning and Analysis, Corporate Accounting, and Tax. The departments of Treasury Operations, Corporate Finance, Fuel Management, Risk Management, Fleet Management and Pensions will report to Gerry Laderman.
Revised guidance for certain financial and operational statistics is provided on
Attachment A. Our operations are running better than ever and we posted an 86.2% on-time performance for May with a systemwide mileage completion factor of 99.4%. However, as recently reported, we are seeing system RASM continuing to trend downward due to softness in the business mix. The capacity forecast for 2001 has been reduced from 6% to 5% year-over-year growth to reflect reduction of marginal domestic flying in less desirable time channels and weekend reductions identified by our demand driven dispatch model.Recently Continental took delivery of its first 737-900 aircraft. This aircraft model is a welcome addition to our fleet. We have one of the youngest jet fleets in the industry and we continue to realize significant cost efficiencies with our modern fleet. Our current fleet plan is attached
(Attachment B). The top chart is our current Fleet Plan showing deliveries resulting from both firm commitments and planned option exercises through 2002 reduced by planned retirements. The bottom chart shows only firm commitments reduced by planned retirements as well as other potential lease expirations through 2005.Additional information regarding Continental (recent press releases and investor presentations) can always be found on our website at www.Continental.com/corporate. If you should have any questions regarding this information, please do not hesitate to contact us.
Sincerely,
Diane Dayhoff
Staff VP Finance
Attachment A
Continental Airlines' Mid-Quarter Update
2001 Estimated Year-over-Year Change |
||
Operating Statistics |
2nd Qtr.(E) |
Full Year(E) |
CASM |
(0.5) - 0.5% |
0.0 - 1.0% |
2001 Estimated Amounts |
||
Financial |
2nd Qtr.(E) |
Full Year(E) |
Aircraft Rent |
$225 Million |
$910 Million |
Year-over-Year Percentage Change |
|||||
ASMs 2001 (Quarterly) |
1st(A) |
2nd(E) |
3rd(E) |
4th(E) |
Full Year(E) |
Domestic |
4% |
6% |
6% |
5% |
5% |
2001 Estimated Load Factor |
||
Load Factor |
2nd Qtr.(E) |
Full Year(E) |
Continental |
74 - 75% |
73 - 74% |
2001 EPS Estimated Share Count
2nd Qtr.(E) |
Full Year(E) |
|
Average Diluted Shares |
59.3 Million |
57 Million |
Attachment B | ||||||||||
Continental Airlines Flexible Jet Fleet Plan | ||||||||||
Includes Continental, Continental Micronesia and Continental Express Regional Jets | ||||||||||
June 1, 2001 Fleet Plan | ||||||||||
Total @ | Net Inductions and Exits | Total @ | ||||||||
Jet | YE 2000 | 2001E | 2002E | YE 2002E | ||||||
777-200 | 16 | - - | 2 | 18 | ||||||
DC10-30 | 17 | (8) | (4) | 5 | ||||||
767-400ER | 4 | 2 | 10 | 16 | ||||||
767-200ER | 3 | 7 | - - | 10 | ||||||
757-300 | - - | 2 | 6 | 8 | ||||||
757-200 | 41 | - - | - - | 41 | ||||||
737-900 | - - | 10 | 5 | 15 | ||||||
737-800 | 58 | 15 | 20 | 93 | ||||||
MD-80 | 65 | (6) | (10) | 49 | ||||||
737-700 | 36 | - - | 5 | 41 | ||||||
737-300 | 65 | - - | (2) | 63 | ||||||
737-500 | 66 | - - | - - | 66 | ||||||
Total Jet | 371 | 22 | 32 | 425 | ||||||
Regional Jet | ||||||||||
ERJ-145XR | - - | - - | 6 | 6 | ||||||
ERJ-145 | 78 | 29 | 33 | 140 | ||||||
ERJ-135 | 18 | 12 | 12 | 42 | ||||||
Total Regional Jet | 96 | 41 | 51 | 188 | ||||||
Year End Total | ||||||||||
Jet | 371 | 393 | 425 | |||||||
Regional Jet | 96 | 137 | 188 | |||||||
Total YE Jet Count | 467 | 530 | 613 | |||||||
Firm Commitments Less Planned Retirements and Other Lease Expirations | ||||||||||
Total @ | Net Inductions and Exits | Total @ | ||||||||
Jet | YE 2000 | 2001E | 2002E | 2003E | 2004E | 2005E | YE 2005E | |||
777-200 | 16 | - - | 2 | - - | - - | - - | 18 | |||
DC10-30 | 17 | (8) | (4) | (5) | - - | - - | - - | |||
767-400ER | 4 | 2 | 10 | 4 | 2 | 2 | 24 | |||
767-200ER | 3 | 7 | - - | - - | - - | - - | 10 | |||
757-300 | - - | 2 | 6 | 7 | - - | - - | 15 | |||
757-200 | 41 | - - | - - | - - | - - | - - | 41 | |||
737-900 | - - | 10 | 5 | - - | - - | - - | 15 | |||
737-800 | 58 | 15 | 20 | - - | - - | - - | 93 | |||
MD-80 | 65 | (8) | (13) | (13) | (14) | (17) | - - | |||
737-700 | 36 | - - | 5 | - - | - - | - - | 41 | |||
737-300 | 65 | - - | (4) | (18) | (12) | - - | 31 | |||
737-500 | 66 | - - | (1) | (2) | - - | - - | 63 | |||
Total Jet | 371 | 20 | 26 | (27) | (24) | (15) | 351 | |||
Regional Jet | ||||||||||
ERJ-145XR | - - | - - | 6 | 31 | 36 | 2 | 75 | |||
ERJ-145 | 78 | 29 | 33 | 9 | - - | - - | 149 | |||
ERJ-135 | 18 | 12 | 12 | 8 | - - | - - | 50 | |||
Total Regional Jet | 96 | 41 | 51 | 48 | 36 | 2 | 274 | |||
Year End Total | ||||||||||
Jet | 371 | 391 | 417 | 390 | 366 | 351 | ||||
Regional Jet | 96 | 137 | 188 | 236 | 272 | 274 | ||||
Total YE Jet Count | 467 | 528 | 605 | 626 | 638 | 625 |