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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):

November 3, 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 November 3, 2003, we issued a press release announcing our October performance and our estimated consolidated breakeven load factor for November. 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.

 

 

November 3, 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 OCTOBER 2003

HOUSTON, Nov. 3, 2003 - Continental Airlines (NYSE: CAL) today reported an October 2003 systemwide mainline load factor of 74.0 percent, an October record and 4.6 points above last year's October load factor. In addition, the airline had a record October domestic mainline load factor of 74.4 percent, 4.3 points above October 2002, and an international mainline load factor of 73.4 percent, 5.1 points above October 2002.

During the month, Continental recorded a U.S. Department of Transportation on-time arrival rate of 88.2 percent and a systemwide completion factor of 99.8 percent.

In October 2003, Continental flew 4.9 billion mainline revenue passenger miles

(RPMs) and 6.6 billion mainline available seat miles (ASMs) systemwide, resulting in a

traffic increase of 3.1 percent and a capacity decrease of 3.3 percent as compared to

October 2002. Domestic mainline traffic was 3.0 billion RPMs in October 2003, up 2.5 percent from October 2002, and domestic mainline capacity was 4.0 billion ASMs, down 3.5 percent from October 2002.

Mainline October 2003 passenger revenue per available seat mile (RASM) is estimated to have increased between 3.5 and 4.5 percent compared to October 2002. For September 2003, RASM increased 5.3 percent as compared to September 2002.

Continental's regional operations (Continental Express) set a record October load factor of 70.3 percent, 7.0 points above last year's October load factor. Regional RPMs were 551.2

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million and regional ASMs were 784.3 million in October 2003, resulting in a traffic increase of 58.6 percent and a capacity increase of 43.0 percent versus October 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.

 

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CONTINENTAL AIRLINES REPORTS OPERATIONAL PERFORMANCE

FOR OCTOBER 2003/Page 3

PRELIMINARY TRAFFIC RESULTS

OCTOBER

  

2003   

2002   

Change   

REVENUE PASSENGER MILES (000)

    
 

Domestic

2,960,474

2,888,386

2.5  Percent
         
 

International

1,892,847

1,816,814

4.2  Percent
 

Transatlantic

973,007

934,017

4.2  Percent 
 

Latin America

478,448

479,665

(0.3) Percent 
 

Pacific

441,392

403,132

9.5  Percent 
         
 

Mainline

4,853,321

4,705,200

3.1  Percent
         
 

Regional

551,200

347,460

58.6  Percent
         

AVAILABLE SEAT MILES (000)

    
 

Domestic

3,977,213

4,121,112

(3.5) Percent
         
 

International

2,578,463

2,658,906

(3.0) Percent
 

Transatlantic

1,240,375

1,254,185

(1.1) Percent 
 

Latin America

740,283

792,297

(6.6) Percent 
 

Pacific

597,804

612,423

(2.4) Percent 
         
 

Mainline

6,555,676

6,780,017

(3.3) Percent
         
 

Regional

784,348

548,575

43.0  Percent
         

PASSENGER LOAD FACTOR

    
 

Domestic

74.4 Percent

70.1 Percent

4.3  Points
         
 

International

73.4 Percent

68.3 Percent

5.1  Points
 

Transatlantic

78.4 Percent 

74.5 Percent 

3.9  Points 
 

Latin America

64.6 Percent 

60.5 Percent 

4.1  Points 
 

Pacific

73.8 Percent 

65.8 Percent 

8.0  Points 
         
 

Mainline

74.0 Percent

69.4 Percent

4.6  Points
         
 

Regional

70.3 Percent

63.3 Percent

7.0  Points
         

CARGO REVENUE TON MILES (000)

    
 

Total

83,463

87,373

(4.5) Percent

 

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CONTINENTAL AIRLINES REPORTS OPERATIONAL PERFORMANCE

FOR OCTOBER 2003/Page 4

YEAR-TO-DATE

  

2003   

2002   

Change   

REVENUE PASSENGER MILES (000)

    
 

Domestic

30,132,581

30,335,834

(0.7) Percent
         
 

International

19,104,410

19,815,687

(3.6) Percent
 

Transatlantic

8,873,737

9,017,461

(1.6) Percent 
 

Latin America

6,378,118

6,288,254

1.4  Percent 
 

Pacific

3,852,555

4,509,972

(14.6) Percent 
         
 

Mainline

49,236,991

50,151,521

(1.8) Percent
         
 

Regional

4,690,460

3,222,436

45.6  Percent
         

AVAILABLE SEAT MILES (000)

    
 

Domestic

39,443,014

41,006,219

(3.8) Percent
         
 

International

25,909,455

26,331,494

(1.6) Percent
 

Transatlantic

11,603,501

11,522,905

0.7  Percent 
 

Latin America

8,676,503

8,793,080

(1.3) Percent 
 

Pacific

5,629,451

6,015,509

(6.4) Percent 
         
 

Mainline

65,352,469

67,337,713

(2.9) Percent
         
 

Regional

6,892,996

5,103,655

35.1  Percent 
         

PASSENGER LOAD FACTOR

    
 

Domestic

76.4 Percent

74.0 Percent

2.4  Points
         
 

International

73.7 Percent

75.3 Percent

(1.6) Points
 

Transatlantic

76.5 Percent 

78.3 Percent 

(1.8) Points 
 

Latin America

73.5 Percent 

71.5 Percent 

2.0  Points 
 

Pacific

68.4 Percent 

75.0 Percent 

(6.6) Points 
         
 

Mainline

75.3 Percent

74.5 Percent

0.8  Points
         
 

Regional

68.0 Percent

63.1 Percent

4.9  Points
         

CARGO REVENUE TON MILES (000)

    
 

Total

763,007

751,613

1.5  Percent

 

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CONTINENTAL AIRLINES REPORTS OPERATIONAL PERFORMANCE

FOR OCTOBER 2003/Page 5

PRELIMINARY OPERATIONAL AND FINANCIAL RESULTS

OCTOBER

  

2003 

2002 

Change  

On-Time Performance1

88.2%

78.4%

9.8  Points
         

Completion Factor2

99.8%

99.5%

0.3  Points
         

YEAR-TO-DATE

  

2003 

2002 

Change  

On-Time Performance1

82.9%

84.2%

(1.3) Points
         

Completion Factor2

99.4%

99.7%

(0.3) Points
     

September 2003 consolidated breakeven load factor3,4

65.7  Percent
         

October 2003 estimated year-over-year RASM change

3.5-4.5 Percent
         

October 2003 estimated average price per gallon of fuel,

                       excluding fuel taxes

81.0 Cents   
         

October 2003 estimated consolidated breakeven load factor3

79 Percent
         

October 2003 actual consolidated load factor5

73.6  Percent
         

November 2003 estimated consolidated breakeven load factor3

80 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

3.5 Percent

(11) Percent

  

February

(0.4) Percent

(11.3) Percent

  

March

(11.7) Percent

(17.4) Percent

  

April

(1) 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 (estimated)

3.5-4.5 Percent

13-14 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 14.6 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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