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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 1, 2004

 

 

 

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 1, 2004, 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
 

99.1

Press Release for May 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.

 

 

June 1, 2004

By /s/ Jennifer L. Vogel      
 

Jennifer L. Vogel
 

Senior Vice President, General Counsel
and Secretary

 

 

EXHIBIT INDEX

99.1

Press Release for May Performance

 

 
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 MAY 2004

OPERATIONAL PERFORMANCE

HOUSTON, June 1, 2004 - Continental Airlines (NYSE: CAL) today reported a May systemwide mainline load factor of 74.7 percent, 1.2 points below last year's May load factor. In addition, the airline had a May domestic mainline load factor of 75.1 percent, 2.2 points below May 2003, and an international mainline load factor of 74.1 percent, 0.4 points above May 2003.

During the month, Continental recorded a U.S. Department of Transportation on-time arrival rate of 76.0 percent and a systemwide mainline completion factor of 99.4 percent.

In May 2004, Continental flew 5.4 billion mainline revenue passenger miles (RPMs) and 7.2 billion mainline available seat miles (ASMs) systemwide, resulting in a traffic increase of 11.9 percent and a capacity increase of 13.8 percent as compared to May 2003. Domestic mainline traffic was 3.1 billion RPMs in May 2004, up 2.3 percent from May 2003, and domestic mainline capacity was 4.1 billion ASMs, up 5.3 percent from May 2003.

Systemwide May 2004 mainline passenger revenue per available seat mile (RASM) is estimated to have decreased between 3.0 and 4.0 percent compared to May 2003. For April 2004, RASM increased 3.1 percent as compared to April 2003.

Continental's regional operations (Continental Express) set a record May load factor of 71.8 percent, 1.8 points above last year's May load factor. Regional

RPMs were 619.7 million and regional ASMs were 862.9 million in May 2004, resulting in a traffic increase of 27.4 percent and a capacity increase of 24.1 percent versus May 2003.

Continental Airlines is the world's sixth-largest airline with more than 2,800 daily departures throughout the Americas, Europe and Asia. Continental serves 149 domestic and 117 international destinations - more than any other airline in the world - and nearly 200 additional points are served via codeshare partner airlines. With 41,000 mainline employees, the airline has hubs serving New York, Houston, Cleveland and Guam, and carries approximately 51 million passengers per year. FORTUNE ranks Continental one of the 100 Best Companies to Work For in America, an honor it has earned for six consecutive years. FORTUNE also ranks Continental as the top airline in its Most Admired Global Companies in 2004. 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 2003 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 release.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(more)

 

 

 

 

 

 

 

 

 

PRELIMINARY TRAFFIC RESULTS

MAY

  

2004   

2003   

Change   

REVENUE PASSENGER MILES (000)

    
 

Domestic

3,114,643

3,043,580

2.3  Percent
         
 

International

2,286,505

1,783,262

28.2  Percent
 

Transatlantic

1,141,946

836,833

36.5  Percent 
 

Latin America

646,112

610,819

5.8  Percent 
 

Pacific

498,448

335,609

48.5  Percent 
         
 

Mainline

5,401,148

4,826,842

11.9  Percent
         
 

Regional

619,676

486,356

27.4  Percent
         

AVAILABLE SEAT MILES (000)

    
 

Domestic

4,147,872

3,938,690

5.3  Percent
         
 

International

3,084,292

2,418,779

27.5  Percent
 

Transatlantic

1,469,715

1,059,581

38.7  Percent 
 

Latin America

988,502

861,930

14.7  Percent 
 

Pacific

626,076

497,269

25.9  Percent 
         
 

Mainline

7,232,164

6,357,469

13.8  Percent
         
 

Regional

862,878

695,246

24.1  Percent
         

PASSENGER LOAD FACTOR

    
 

Domestic

75.1 Percent

77.3 Percent

(2.2) Points
         
 

International

74.1 Percent

73.7 Percent

0.4  Points
 

Transatlantic

77.7 Percent 

79.0 Percent 

(1.3) Points 
 

Latin America

65.4 Percent 

70.9 Percent 

(5.5) Points 
 

Pacific

79.6 Percent 

67.5 Percent 

12.1  Points 
         
 

Mainline

74.7 Percent

75.9 Percent

(1.2) Points
         
 

Regional

71.8 Percent

70.0 Percent

1.8  Points
         

CARGO REVENUE TON MILES (000)

    
 

Total

82,929

74,977

10.6  Percent

 

- more -

 

YEAR-TO-DATE

  

2004   

2003   

Change   

REVENUE PASSENGER MILES (000)

    
 

Domestic

14,991,007

13,968,204

7.3  Percent
         
 

International

10,512,857

8,599,254

22.3  Percent
 

Transatlantic

4,626,324

3,666,729

26.2  Percent 
 

Latin America

3,546,536

3,219,251

10.2  Percent 
 

Pacific

2,339,997

1,713,274

36.6  Percent 
         
 

Mainline

25,503,864

22,567,458

13.0  Percent
         
 

Regional

2,767,568

1,995,252

38.7  Percent
         

AVAILABLE SEAT MILES (000)

    
 

Domestic

20,334,818

19,071,114

6.6  Percent
         
 

International

14,166,758

12,531,067

13.1  Percent
 

Transatlantic

6,077,857

5,293,429

14.8  Percent 
 

Latin America

5,001,292

4,516,214

10.7  Percent 
 

Pacific

3,087,609

2,721,424

13.5  Percent 
         
 

Mainline

34,501,576

31,602,181

9.2  Percent
         
 

Regional

4,120,981

3,106,359

32.7  Percent
         

PASSENGER LOAD FACTOR

    
 

Domestic

73.7 Percent

73.2 Percent

0.5  Points
         
 

International

74.2 Percent

68.6 Percent

5.6  Points
 

Transatlantic

76.1 Percent 

69.3 Percent 

6.8  Points 
 

Latin America

70.9 Percent 

71.3 Percent 

(0.4) Points 
 

Pacific

75.8 Percent 

63.0 Percent 

12.8  Points 
         
 

Mainline

73.9 Percent

71.4 Percent

2.5  Points
         
 

Regional

67.2 Percent

64.2 Percent

3.0  Points
         

CARGO REVENUE TON MILES (000)

    
 

Total

418,723

383,099

9.3  Percent

 

- more -

 

PRELIMINARY OPERATIONAL AND FINANCIAL RESULTS

MAY

  

2004 

2003 

Change  

On-Time Performance1

76.0%

86.7%

(10.7) Points

Completion Factor2

99.4%

99.9%

(0.5) Points
         

YEAR-TO-DATE

  

2004 

2003 

Change  

On-Time Performance1

78.8%

84.2%

(5.4) Points

Completion Factor2

99.6%

99.2%

0.4  Points
         

April 2004 consolidated breakeven load factor3,4

78.5  Percent

May 2004 estimated year-over-year systemwide RASM change

(3.0)-(4.0) Percent

May 2004 estimated average price per gallon of fuel,

                       including fuel taxes


1.15 Dollars

May 2004 estimated consolidated breakeven load factor3,5

80 Percent

May 2004 actual consolidated load factor6

74.4 Percent

June 2004 estimated consolidated breakeven load factor3,7

82 Percent
 

YEAR-OVER-YEAR SYSTEMWIDE RASM

2003 vs. 2002

2003 vs. 2001

  

April

(1.0) Percent

(11.3) Percent

  

May

2.0 Percent

(4.3) Percent

  

June

0.3 Percent

(5.2) Percent

  

July

4.9 Percent

0.7  Percent

  

August

4.4 Percent

1.5 Percent

  

September

5.3 Percent

16.7 Percent

  

October

4.4 Percent

14.1 Percent

  

November

5.5 Percent

3.7 Percent

  

December

1.7 Percent

12.0 Percent

  
 

2004 vs. 2003

2004 vs. 2002

  

January

0.9 Percent

4.5 Percent

  

February

(2.5) Percent

(2.9) Percent

  

March

4.9 Percent

(7.4) Percent

  

April

3.1 Percent

2.1 Percent

  

May (estimated)

(3.0)-(4.0) Percent

(1.0)-(2.0) Percent

  

1 Department of Transportation Arrivals within 14 minutes

2 System 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 Charge related to MD-80 aircraft retirements accounts for 1.3 percentage points

5 Expense related to net fair market value adjustment of trading securities and charge related to MD-80 aircraft retirements account for

2 percentage points

6 Includes Continental Airlines and Continental Express

7 Charge related to MD-80 aircraft retirements accounts for 2 percentage points

 

 

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