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SECURITIES AND EXCHANGE COMMISSION |
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Washington, D.C. 20549 |
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FORM 8-K |
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CURRENT REPORT |
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Pursuant to Section 13 or 15(d) of the |
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Securities Exchange Act of 1934 |
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Date of Report (Date of earliest event reported): |
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August 1, 2003 |
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CONTINENTAL AIRLINES, INC. |
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(Exact name of registrant as specified in its charter) |
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Delaware |
1-10323 |
74-2099724 |
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(State or other jurisdiction |
(Commission File Number) |
(IRS Employer |
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of incorporation) |
Identification No.) |
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1600 Smith Street, Dept. HQSEO, Houston, Texas |
77002 |
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(Address of principal executive offices) |
(Zip Code) |
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(713) 324-2950 |
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(Registrant's telephone number, including area code) |
Item 5. Other Events.
On August 1, 2003, we issued a press release announcing our July performance and our estimated consolidated breakeven load factor for August. The press release is filed herewith as Exhibit 99.1 and is incorporated herein by reference.
Item 7. Financial Statements and Exhibits.
- Exhibits
- Press Release
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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.
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CONTINENTAL AIRLINES, INC. |
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August 1, 2003 |
By /s/ Jennifer L. Vogel |
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Jennifer L. Vogel |
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Vice President, General Counsel and Secretary |
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EXHIBIT INDEX |
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99.1 |
Press Release |
EXHIBIT 99.1
News Release
Contact:
Corporate CommunicationsHouston: 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 JULY 2003
HOUSTON, August 1, 2003 - Continental Airlines (NYSE: CAL) today reported an all-time record systemwide mainline load factor of 84.5 percent for July 2003,
5.0 points above last year's July load factor and 3.5
points above the previous record set in June 2003. In July 2003, the airline had an all-time record domestic mainline load factor of 85.7 percent, 6.5 points above July 2002 and 3.9 points above the previous record set in June 2003, and an international mainline load factor of 82.5 percent, 2.6 points above July 2002.During the month, Continental recorded a U.S. Department of Transportation on-time arrival rate of 80.4 percent and a systemwide completion factor of 99.8 percent for its mainline operations. In the final five days of the month, Continental maintained an on-time arrival rate of 90.3 percent with an average load factor of 85.5 percent and no flight cancellations. In total, the airline operated 13 days without a single flight cancellation, including the day when hurricane Claudette passed within 90 miles of Continental's Houston hub at Bush Intercontinental Airport.
In July 2003, Continental flew
6.0 billion mainline revenue passenger miles (RPMs) and 7.1 billion mainline available seat miles (ASMs) systemwide, resulting in a(more)
CONTINENTAL AIRLINES REPORTS
OPERATIONAL PERFORMANCE FORJULY 2003/PAGE 2
traffic increase of
5.6 percent and a capacity decrease of 0.7 percent as compared to July2002. Domestic mainline traffic was
3.7 billion RPMs in July 2003, up 9.3 percent from July 2002, and July 2003 domestic mainline capacity was 4.3 billion ASMs, up 1.0 percent from July 2002.Systemwide July 2003 mainline passenger revenue per available seat mile
(RASM) is estimated to have increased between 4 and 6 percent compared to July 2002. For June 2003, RASM increased 0.4 percent as compared to June 2002.
Continental's regional operations (Continental Express) set an all time load factor record of 74.4 percent in July 2003, 7.0 points above last year's July load factor and 0.9 points above the previous record set last month. Regional RPMs were 585.5 million and regional ASMs were 787.2 million in July 2003, resulting in a traffic increase of 61.4 percent and a capacity increase of 46.2 percent versus July 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.
(more)
CONTINENTAL AIRLINES REPORTS OPERATIONAL PERFORMANCE FOR
JULY 2003/PAGE 3
PRELIMINARY TRAFFIC RESULTS
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JULY |
2003 |
2002 |
Change |
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REVENUE PASSENGER MILES (000) |
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Domestic |
3,725,041 |
3,407,722 |
9.3 Percent |
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International |
2,296,999 |
2,295,698 |
0.1 Percent |
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Transatlantic |
1,099,947 |
1,079,408 |
1.9 Percent |
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Latin America |
789,479 |
725,160 |
8.9 Percent |
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Pacific |
407,573 |
491,131 |
(17.0) Percent |
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Mainline |
6,022,040 |
5,703,420 |
5.6 Percent |
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Regional |
585,500 |
362,654 |
61.4 Percent |
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AVAILABLE SEAT MILES (000) |
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Domestic |
4,345,772 |
4,304,401 |
1.0 Percent |
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International |
2,782,874 |
2,872,976 |
(3.1) Percent |
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Transatlantic |
1,301,973 |
1,300,251 |
0.1 Percent |
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Latin America |
922,966 |
925,469 |
(0.3) Percent |
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Pacific |
557,935 |
647,257 |
(13.8) Percent |
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Mainline |
7,128,647 |
7,177,377 |
(0.7) Percent |
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Regional |
787,167 |
538,380 |
46.2 Percent |
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PASSENGER LOAD FACTOR |
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Domestic |
85.7 Percent |
79.2 Percent |
6.5 Points |
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International |
82.5 Percent |
79.9 Percent |
2.6 Points |
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Transatlantic |
84.5 Percent |
83.0 Percent |
1.5 Points |
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Latin America |
85.5 Percent |
78.4 Percent |
7.1 Points |
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Pacific |
73.1 Percent |
75.9 Percent |
(2.8) Points |
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Mainline |
84.5 Percent |
79.5 Percent |
5.0 Points |
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Regional |
74.4 Percent |
67.4 Percent |
7.0 Points |
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CARGO REVENUE TON MILES (000) |
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Total |
75,405 |
78,645 |
(4.1) Percent |
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(more)
CONTINENTAL AIRLINES REPORTS
OPERATIONAL PERFORMANCE FORJULY 2003/PAGE 4
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YEAR-TO-DATE |
2003 |
2002 |
Change |
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REVENUE PASSENGER MILES (000) |
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Domestic |
21,013,187 |
21,424,945 |
(1.9) Percent |
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International |
12,955,507 |
13,796,642 |
(6.1) Percent |
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Transatlantic |
5,796,103 |
6,026,733 |
(3.8) Percent |
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Latin America |
4,685,161 |
4,641,353 |
0.9 Percent |
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Pacific |
2,474,243 |
3,128,556 |
(20.9) Percent |
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Mainline |
33,968,694 |
35,221,587 |
(3.6) Percent |
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Regional |
3,119,688 |
2,200,652 |
41.8 Percent |
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AVAILABLE SEAT MILES (000) |
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Domestic |
27,475,778 |
28,604,134 |
(3.9) Percent |
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International |
17,896,956 |
18,098,067 |
(1.1) Percent |
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Transatlantic |
7,800,612 |
7,685,140 |
1.5 Percent |
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Latin America |
6,316,695 |
6,304,952 |
0.2 Percent |
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Pacific |
3,779,649 |
4,107,975 |
(8.0) Percent |
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Mainline |
45,372,734 |
46,702,201 |
(2.8) Percent |
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Regional |
4,627,257 |
3,494,782 |
32.4 Percent |
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PASSENGER LOAD FACTOR |
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Domestic |
76.5 Percent |
74.9 Percent |
1.6 Points |
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International |
72.4 Percent |
76.2 Percent |
(3.8) Points |
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Transatlantic |
74.3 Percent |
78.4 Percent |
(4.1) Points |
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Latin America |
74.2 Percent |
73.6 Percent |
0.6 Points |
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Pacific |
65.5 Percent |
76.2 Percent |
(10.7) Points |
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Mainline |
74.9 Percent |
75.4 Percent |
(0.5) Points |
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Regional |
67.4 Percent |
63.0 Percent |
4.4 Points |
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CARGO REVENUE TON MILES (000) |
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Total |
533,963 |
511,103 |
4.5 Percent |
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(more)
CONTINENTAL AIRLINES REPORTS
OPERATIONAL PERFORMANCE FORJULY 2003/PAGE 5
PRELIMINARY OPERATIONAL AND FINANCIAL RESULTS
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JULY |
2003 |
2002 |
Change |
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On-Time Performance1 |
80.4% |
82.8% |
(2.4) Points |
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Completion Factor2 |
99.8% |
99.5% |
0.3 Points |
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YEAR-TO-DATE |
2003 |
2002 |
Change |
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On-Time Performance1 |
83.3% |
84.8% |
(1.5) Points |
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Completion Factor2 |
99.4% |
99.8% |
(0.4) Points |
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June 2003 consolidated breakeven load factor3,4 |
76.6 Percent |
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July 2003 estimated year-over-year RASM change |
4-6 Percent |
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July 2003 estimated average price per gallon of fuel,excluding fuel taxes |
77.0 Cents |
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July 2003 estimated consolidated breakeven load factor3 |
77 Percent |
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July 2003 actual consolidated load factor5 |
83.5 Percent |
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August 2003 estimated consolidated breakeven load factor3 |
76 Percent |
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YEAR-OVER-YEAR RASM6 |
2002 vs. 2001 |
2002 vs. 2000 |
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May |
(6.3) Percent |
(15.1) Percent |
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June |
(5.5) Percent |
(15.5) Percent |
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July |
(4.0) Percent |
(13.5) Percent |
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August |
(2.7) Percent |
(15.2) Percent |
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September |
10.8 Percent |
(17.6) Percent |
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October |
9.3 Percent |
(15.7) Percent |
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November |
(1.7) Percent |
(18.4) Percent |
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December |
10.1 Percent |
(5.7) Percent |
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2003 vs. 2002 |
2003 vs. 2001 |
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January |
3.6 Percent |
(10.9) Percent |
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February |
(0.4) Percent |
(11.3) Percent |
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March |
(11.8) Percent |
(17.4) Percent |
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April |
(1.1) Percent |
(11.3) Percent |
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May |
2.0 Percent |
(4.4) Percent |
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June |
0.4 Percent |
(5.1) Percent |
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July (estimated) |
4-6 Percent |
(1)-1 Percent |
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1
Department of Transportation Arrivals within 14 minutes2
System Mileage Completion Percentage3
Consolidated load factor (including Continental Airlines and Continental Express) needed to break even on a consolidated net incomebasis. 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 of $14 million related to aircraft deferrals accounts for 1.8 percentage points5
Includes Continental Airlines and Continental Express6
CAL has been releasing RASM data since May 2001###