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 2, 2003

 

 

 

CONTINENTAL AIRLINES, INC.

(Exact name of registrant as specified in its charter)

 

Delaware

1-10323

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 5. Other Events.

On June 2, 2003, we issued a press release announcing our May performance and our estimated consolidated breakeven load factor for June. The press release is filed herewith as Exhibit 99.1 and is incorporated herein by reference.

Item 7. Financial Statements and Exhibits.

    1. Exhibits

      1. Press Release

 

 

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.

 

 

June 2, 2003

By /s/ Jennifer L. Vogel                           

 

Jennifer L. Vogel

 

Vice President, General Counsel

and Secretary

 

 

EXHIBIT INDEX

 

99.1

Press Release

 

 

 

 

News Release

EXHIBIT 99.1

News Release

Contact: Corporate Communications

Houston: 713.324.5080

Email: corpcomm@coair.com

News archive: continental.com/news/ Address: P.O. Box 4607, Houston, TX 77210-4607

CONTINENTAL AIRLINES REPORTS

OPERATIONAL PERFORMANCE FOR MAY 2003

HOUSTON, June 2, 2003 - Continental Airlines (NYSE: CAL) today reported a May 2003 systemwide mainline jet load factor of 75.9 percent, 2.4 points above last year's May load factor. Continental reported a record May domestic mainline jet load factor of 77.3 percent and an international mainline jet load factor of 73.6 percent for May 2003.

The airline reported excellent operational performance in May, breaking nine of 12 operational records for the month of May. During the month, Continental recorded an on-time arrival rate of 86.7 percent and a systemwide completion factor of 99.9 percent for its mainline jet operations, operating 13 days without a single flight cancellation.

In May 2003, Continental flew 4.8 billion mainline jet revenue passenger miles (RPMs) and 6.4 billion mainline jet available seat miles (ASMs) systemwide, resulting in a traffic decrease of 6.3 percent and a capacity decrease of 9.2 percent as compared to May 2002. Domestic mainline jet traffic was 3.0 billion RPMs in May 2003, down 3.1 percent from May 2002, and May 2003 domestic mainline jet capacity was 3.9 billion ASMs, down 5.7 percent from May 2002.

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CONTINENTAL AIRLINES REPORTS OPERATIONAL PERFORMANCE FOR MAY 2003/Page 2

 

Systemwide May 2003 mainline jet passenger revenue per available seat mile

(RASM) is estimated to have increased between one and three percent compared to May 2002. For April 2003, RASM decreased 1.1 percent as compared to April 2002.

ExpressJet Airlines, a subsidiary of Continental Airlines doing business as Continental Express, separately reported an all-time record load factor of 70 percent in May 2003, 4.3 points above last year's May load factor. ExpressJet flew 486.4 million RPMs and 695.2 million ASMs in May 2003, resulting in a traffic increase of 41.4 percent and a capacity increase of 32.7 percent versus May 2002.

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 2002 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, regulatory matters and industry conditions, including the demand for air travel, the airline pricing environment and industry capacity decisions. 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 releas e.

 

 

 

 

 

 

 

 

 

 

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CONTINENTAL AIRLINES REPORTS OPERATIONAL PERFORMANCE FOR MAY 2003/Page 3

PRELIMINARY TRAFFIC RESULTS

MAY

 

2003   

2002   

Change   

REVENUE PASSENGER MILES (000)

   
 

Domestic

3,043,418

3,142,066

(3.1) Percent

         
 

International

1,780,525

2,005,028

(11.2) Percent

 

Transatlantic

835,181

945,266

(11.6) Percent 

 

Latin America

610,685

594,069

2.8  Percent 

 

Pacific

334,659

465,693

(28.1) Percent 

         
 

Total Jet

4,823,942

5,147,094

(6.3) Percent

         
 

ExpressJet

486,351

343,964

41.4  Percent

         

AVAILABLE SEAT MILES (000)

   
 

Domestic

3,938,078

4,174,584

(5.7) Percent

         
 

International

2,418,710

2,824,733

(14.4) Percent

 

Transatlantic

1,058,519

1,262,333

(16.1) Percent 

 

Latin America

862,485

922,279

(6.5) Percent 

 

Pacific

497,705

640,120

(22.2) Percent

         
 

Total Jet

6,356,788

6,999,317

(9.2) Percent

         
 

ExpressJet

695,246

523,893

32.7  Percent 

         

PASSENGER LOAD FACTOR

   
 

Domestic

77.3 Percent

75.3 Percent

2.0  Points

         
 

International

73.6 Percent

71.0 Percent

2.6  Points

 

Transatlantic

78.9 Percent 

74.9 Percent 

4.0  Points 

 

Latin America

70.8 Percent 

64.4 Percent 

6.4  Points 

 

Pacific

67.2 Percent 

72.8 Percent 

(5.6) Points 

         
 

Total Jet

75.9 Percent

73.5 Percent

2.4  Points

         
 

ExpressJet

70.0 Percent

65.7 Percent

4.3  Points

         

CARGO REVENUE TON MILES (000)

   
 

Total

74,943

74,635

0.4  Percent

 

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CONTINENTAL AIRLINES REPORTS OPERATIONAL PERFORMANCE

FOR MAY 2003/Page 4

PRELIMINARY TRAFFIC RESULTS

YEAR-TO-DATE

 

2003   

2002   

Change   

REVENUE PASSENGER MILES (000)

   
 

Domestic

13,968,309

14,805,430

(5.7) Percent

         
 

International

8,596,015

9,247,457

(7.0) Percent

 

Transatlantic

3,665,721

3,852,849

(4.9) Percent 

 

Latin America

3,217,541

3,263,741

(1.4) Percent 

 

Pacific

1,712,753

2,130,867

(19.6) Percent 

         
 

Total Jet

22,564,324

24,052,887

(6.2) Percent

         
 

ExpressJet

1,995,247

1,492,199

33.7  Percent

         

AVAILABLE SEAT MILES (000)

   
 

Domestic

19,070,813

20,156,682

(5.4) Percent

         
 

International

12,529,362

12,427,896

0.8  Percent

 

Transatlantic

5,292,754

5,129,054

3.2  Percent 

 

Latin America

4,514,824

4,472,736

0.9  Percent 

 

Pacific

2,721,784

2,826,106

(3.7) Percent 

         
 

Total Jet

31,600,175

32,584,578

(3.0) Percent

         
 

ExpressJet

3,106,359

2,447,698

26.9  Percent 

         

PASSENGER LOAD FACTOR

   
 

Domestic

73.2 Percent

73.5 Percent

(0.3) Points

         
 

International

68.6 Percent

74.4 Percent

(5.8) Points

 

Transatlantic

69.3 Percent 

75.1 Percent 

(5.8) Points 

 

Latin America

71.3 Percent 

73.0 Percent 

(1.7) Points 

 

Pacific

62.9 Percent 

75.4 Percent 

(12.5) Points 

         
 

Total Jet

71.4 Percent

73.8 Percent

(2.4) Points

         
 

ExpressJet

64.2 Percent

61.0 Percent

3.2  Points

         

CARGO REVENUE TON MILES (000)

   
 

Total

383,065

355,359

7.8  Percent

 

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CONTINENTAL AIRLINES REPORTS OPERATIONAL PERFORMANCE

FOR MAY 2003/Page 5

PRELIMINARY OPERATIONAL AND FINANCIAL RESULTS

MAY

 

2003 

2002 

Change  

On-Time Performance1

86.7%

86.0%

0.7  Points

         

Completion Factor2

99.9%

99.9%

-   Points

       
         

YEAR-TO-DATE

 

2003 

2002 

Change  

On-Time Performance1

84.2%

85.9%

(1.7) Points

         

Completion Factor2

99.2%

99.9%

(0.7) Points

       
     

April 2003 actual consolidated breakeven load factor3

78.1  Percent

         

May 2003 estimated year-over-year RASM change

1-3 Percent

         

May 2003 estimated average price per gallon of fuel,

                       excluding fuel taxes

81.0 Cents   

         

May 2003 estimated consolidated breakeven load factor3, 5

56 Percent

         

May 2003 actual consolidated load factor4

75.3  Percent

         

June 2003 estimated consolidated breakeven load factor3

75 Percent

 

YEAR-OVER-YEAR RASM6

2002 vs. 2001

2002 vs. 2000

 

May

(6.3) Percent

(15.1) Percent

 

June

(5.5) Percent

(15.5) Percent

 

July

(4.0) Percent

(13.5) Percent

 

August

(2.7) Percent

(15.2) Percent

 

September

10.8  Percent

(17.6) Percent

 

October

9.3  Percent

(15.7) Percent

 

November

(1.7) Percent

(18.4) Percent

 

December

10.1 Percent

(5.7) Percent

 
 

2003 vs. 2002

2003 vs. 2001

 

January

3.6 Percent

(10.9) Percent

 

February

(0.4) Percent

(11.3) Percent

 

March

(11.8) Percent

(17.4) Percent

 

April

(1.1) Percent

(11.3) Percent

 

May (estimated)

1-3 Percent

(3-5) Percent

 

1 Department of Transportation Arrivals within 14 minutes

2 System 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 Includes Continental Airlines and Continental Express

5 Security fee reimbursement of $176 million accounts for 23 percentage points.

6 CAL has been releasing RASM data since May 2001

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