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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):

October 1, 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 October 1, 2003, we issued a press release announcing our September performance and our estimated consolidated breakeven load factor for October. 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.

 

 

October 1, 2003

By /s/ Jennifer L. Vogel                           
 

Jennifer L. Vogel
 

Senior 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 SEPTEMBER 2003

HOUSTON, Oct. 1, 2003 - Continental Airlines (NYSE: CAL) today reported a systemwide mainline load factor of 72.3 percent for September 2003, 4.4 points above last year's September load factor. In addition, the airline had a September domestic mainline load factor of 71.3 percent, 5.1 points above September 2002, and an international mainline load factor of 73.8 percent, 3.3 points above September 2002.

Continental's traffic on the Sept. 11 anniversary was not significantly impacted when compared to last year. Systemwide mainline traffic on Thursday, Sept. 11, 2003 declined 6.8 percent in revenue passenger miles (RPMs) and 3.3 percent in available seat miles (ASMs) compared to Thursday, Sept. 4, 2003. In comparison, systemwide mainline traffic on Wednesday, Sept. 11, 2002 was down 42 percent in RPMs and 22 percent in ASMs compared to Wednesday, Sept. 4, 2002.

During the month, Continental recorded a U.S. Department of Transportation on-time arrival rate of 78.1 percent and a systemwide completion factor of 99.1 percent. The airline's operational results were adversely impacted by a month-long runway resurfacing project at Newark Liberty International Airport, which was completed Sept. 27, 2003, and Hurricane Isabel.

In September 2003, Continental flew 4.6 billion mainline revenue passenger miles

(RPMs) and 6.3 billion mainline available seat miles (ASMs) systemwide, resulting in a

(more)

CONTINENTAL AIRLINES REPORTS OPERATIONAL PERFORMANCE

FOR SEPTEMBER 2003/Page 2

traffic increase of 2.1 percent and a capacity decrease of 4.0 percent as compared to

September 2002. Domestic mainline traffic was 2.7 billion RPMs in September 2003, up 2.7 percent from September 2002, and domestic mainline capacity was 3.7 billion ASMs, down 4.6 percent from September 2002.

Systemwide September 2003 passenger revenue per available seat mile (RASM) is estimated to have increased between 4.5 and 5.5 percent compared to September 2002. For August 2003, RASM increased 4.4 percent as compared to August 2002.

Continental ended the third quarter 2003 with a consolidated cash and short-term investments balance of approximately $1.6 billion (including $139 million of restricted cash). Continental has hedged 60 percent of its projected fourth quarter fuel volume with caps averaging $28.75 per barrel.

Continental's regional operations (Continental Express) set a record September load factor of 66.9 percent, 6.4 points above last year's September load factor. Regional RPMs were 483.3 million and regional ASMs were 722.9 million in September 2003, resulting in a traffic increase of 57.0 percent and a capacity increase of 42.2 percent versus September 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 release.

 

 

CONTINENTAL AIRLINES REPORTS OPERATIONAL PERFORMANCE

FOR SEPTEMBER 2003/Page 3

PRELIMINARY TRAFFIC RESULTS

SEPTEMBER

  

2003   

2002   

Change   

REVENUE PASSENGER MILES (000)

    
 

Domestic

2,666,725

2,596,156

2.7  Percent
         
 

International

1,890,127

1,866,166

1.3  Percent
 

Transatlantic

985,373

953,068

3.4  Percent 
 

Latin America

450,696

451,593

(0.2) Percent 
 

Pacific

454,059

461,505

(1.6) Percent 
         
 

Mainline

4,556,852

4,462,322

2.1  Percent
         
 

Regional

483,324

307,756

57.0  Percent
         

AVAILABLE SEAT MILES (000)

    
 

Domestic

3,741,969

3,920,862

(4.6) Percent
         
 

International

2,561,590

2,648,166

(3.3) Percent
 

Transatlantic

1,258,044

1,250,382

0.6  Percent 
 

Latin America

690,084

762,163

(9.5) Percent 
 

Pacific

613,462

635,621

(3.5) Percent 
         
 

Mainline

6,303,559

6,569,028

(4.0) Percent
         
 

Regional

722,893

508,432

42.2  Percent
         

PASSENGER LOAD FACTOR

    
 

Domestic

71.3 Percent

66.2 Percent

5.1  Points
         
 

International

73.8 Percent

70.5 Percent

3.3  Points
 

Transatlantic

78.3 Percent 

76.2 Percent 

2.1  Points 
 

Latin America

65.3 Percent 

59.3 Percent 

6.0  Points 
 

Pacific

74.0 Percent 

72.6 Percent 

1.4  Points 
         
 

Mainline

72.3 Percent

67.9 Percent

4.4  Points
         
 

Regional

66.9 Percent

60.5 Percent

6.4  Points
         

CARGO REVENUE TON MILES (000)

    
 

Total

72,436

76,538

(5.4) Percent

 

(more)

CONTINENTAL AIRLINES REPORTS OPERATIONAL PERFORMANCE

FOR SEPTEMBER 2003/Page 4

YEAR-TO-DATE

  

2003   

2002   

Change   

REVENUE PASSENGER MILES (000)

    
 

Domestic

27,172,081

27,447,448

(1.0) Percent
         
 

International

17,211,389

17,998,872

(4.4) Percent
 

Transatlantic

7,900,730

8,083,443

(2.3) Percent 
 

Latin America

5,899,518

5,808,589

1.6  Percent 
 

Pacific

3,411,141

4,106,840

(16.9) Percent 
         
 

Mainline

44,383,470

45,446,320

(2.3) Percent
         
 

Regional

4,139,264

2,874,976

44.0  Percent
         

AVAILABLE SEAT MILES (000)

    
 

Domestic

35,465,800

36,885,107

(3.8) Percent
         
 

International

23,330,993

23,672,589

(1.4) Percent
 

Transatlantic

10,363,126

10,268,720

0.9  Percent 
 

Latin America

7,936,220

8,000,783

(0.8) Percent 
 

Pacific

5,031,647

5,403,086

(6.9) Percent 
         
 

Mainline

58,796,793

60,557,696

(2.9) Percent
         
 

Regional

6,108,624

4,555,079

34.1  Percent 
         

PASSENGER LOAD FACTOR

    
 

Domestic

76.6 Percent

74.4 Percent

2.2  Points
         
 

International

73.8 Percent

76.0 Percent

(2.2) Points
 

Transatlantic

76.2 Percent 

78.7 Percent 

(2.5) Points 
 

Latin America

74.3 Percent 

72.6 Percent 

1.7  Points 
 

Pacific

67.8 Percent 

76.0 Percent 

(8.2) Points 
         
 

Mainline

75.5 Percent

75.0 Percent

0.5  Points
         
 

Regional

67.8 Percent

63.1 Percent

4.7  Points
         

CARGO REVENUE TON MILES (000)

    
 

Total

679,544

664,240

2.3  Percent

 

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CONTINENTAL AIRLINES REPORTS OPERATIONAL PERFORMANCE

FOR SEPTEMBER 2003/Page 5

PRELIMINARY OPERATIONAL AND FINANCIAL RESULTS

SEPTEMBER

  

2003 

2002 

Change  

On-Time Performance1

78.1%

86.2%

(8.1) Points
         

Completion Factor2

99.1%

99.7%

(0.6) Points
         

YEAR-TO-DATE

  

2003 

2002 

Change  

On-Time Performance1

82.3%

84.8%

(2.5) Points
         

Completion Factor2

99.4%

99.8%

(0.4) Points
     

August 2003 consolidated breakeven load factor3,4

65.4  Percent
         

September 2003 estimated year-over-year RASM change

4.5-5.5 Percent
         

September 2003 estimated average price per gallon of fuel,

                       excluding fuel taxes

84.0 Cents   
         

September 2003 estimated consolidated breakeven load factor3,4

69 Percent
         

September 2003 actual consolidated load factor5

71.7  Percent
         

October 2003 estimated consolidated breakeven load factor3

78 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

2.0 Percent

(4.3) Percent

  

June

0.4 Percent

(5.1) Percent

  

July

4.8 Percent

0.6  Percent

  

August

4.4 Percent

1.5 Percent

  

September (estimated)

4.5-5.5 Percent

16-17 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 Gains on disposition of ExpressJet stock account for 8.1 percentage points in August 2003 and 11 percentage points in September 2003.

5 Includes Continental Airlines and Continental Express

6 CAL has been releasing RASM data since May 2001

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