Continental Airlines Reports September 2005 Operational Performance

HOUSTON, Oct. 3 /PRNewswire-FirstCall/ -- Continental Airlines today reported a September consolidated (mainline plus regional) load factor of 77.0 percent, 2.5 points above last year's September consolidated load factor. The carrier reported a mainline load factor of 77.3 percent, 2.1 points above last year's September mainline load factor, and a domestic mainline load factor of 79.0 percent, 4.7 points above September 2004. All three were operational records for September. In addition, the airline had an international mainline September load factor of 75.4 percent, 1.0 points below September 2004.

During the month, Continental recorded a U.S. Department of Transportation on-time arrival rate of 79.5 percent and a systemwide mainline completion factor of 96.9 percent, both negatively impacted by Hurricane Rita.

In September 2005, Continental flew 6.2 billion consolidated revenue passenger miles (RPMs) and 8.0 billion consolidated available seat miles (ASMs), resulting in a traffic increase of 9.8 percent and a capacity increase of 6.3 percent as compared to September 2004. In September 2005, Continental flew 5.5 billion mainline RPMs and 7.1 billion mainline ASMs, resulting in a mainline traffic increase of 9.1 percent and a mainline capacity increase of 6.1 percent as compared to September 2004. Domestic mainline traffic was 3.0 billion RPMs in September 2005, up 6.6 percent from September 2004, and domestic mainline capacity was 3.8 billion ASMs, up 0.1 percent from September 2004.

For the month of September 2005, consolidated passenger revenue per available seat mile (RASM) is estimated to have increased between 8.0 and 9.0 percent compared to September 2004, while mainline passenger RASM is estimated to have increased between 7.5 and 8.5 percent compared to September 2004. For August 2005, consolidated passenger RASM increased 5.0 percent compared to August 2004 while mainline passenger RASM increased 4.7 percent from August 2004.

During the third quarter, Continental's operations were negatively impacted by Hurricane Rita, and to a lesser extent, Hurricane Katrina, both of which targeted the Gulf Coast. Houston hub consolidated load factors and passenger RASM for September were negatively affected in the days leading up to and immediately following Hurricane Rita's landfall. Houston hub consolidated load factors for Sept. 22, 23, 25 and 26 were 66 percent, 39 percent, 55 percent and 65 percent, respectively. By comparison, prior to the storm, Continental had expected Houston hub consolidated load factors on those days of 82 percent, 82 percent, 88 percent and 79 percent, respectively. Continental canceled all scheduled Houston mainline flights after noon on Friday, Sept. 23 and all Houston mainline flights on Saturday, Sept. 24, while Continental Express extended its Houston flight cancellations from midnight on Sept. 23 through and including Sept. 25.

In addition, September RASM was also adversely impacted by Continental's decision to assist in the evacuation of Houston by greatly enhancing access to lower fares in the days immediately preceding and following Hurricane Rita. Continental also waived change fees for travelers who wanted to change their Houston travel plans. Continental estimates that the adverse impact in September on operating results from Hurricane Rita was approximately $25 million.

Despite the adverse impact from Hurricane Katrina and Hurricane Rita and continued record high jet fuel prices, the company expects to report a modest profit for the third quarter 2005, due to relatively strong performance during the months of July and August.

Continental ended the third quarter with unrestricted cash and short-term investments of approximately $1.93 billion, an amount which falls within the previously indicated guidance of $1.9 to $2.0 billion.

Continental's regional operations (Continental Express) had a record September load factor of 74.2 percent, 5.0 points above last year's September load factor. Regional RPMs were 671.4 million and regional ASMs were 904.6 million in September 2005, resulting in a traffic increase of 16.3 percent and a capacity increase of 8.4 percent versus September 2004.

Continental Airlines is the world's sixth-largest airline. Continental, together with Continental Express and Continental Connection, has more than 3,100 daily departures throughout the Americas, Europe and Asia, serving 150 domestic and 131 international destinations, more than any other carrier in the world. Nearly 400 additional points are served via SkyTeam alliance airlines, which include Aeromexico, Air France/KLM, Alitalia, CSA Czech Airlines, Delta Air Lines, Korean Air and Northwest Airlines. With 41,000 employees, Continental has hubs serving New York, Houston, Cleveland and Guam, and together with Continental Express, carries approximately 56 million passengers per year. Continental consistently earns awards and critical acclaim for both its operation and its corporate culture.

For the second consecutive year, FORTUNE magazine named Continental the No. 1 Most Admired Global Airline on its 2005 list of Most Admired Global Companies. Continental was also included in the publication's annual "Top 50" list, which ranks all companies, across a wide variety of industries, that appear in the Global Most Admired Companies issue. Continental again won major awards at the 2005 OAG Airline of the Year Awards including "Airline of the Year" and "Best Airline Based in North America" for the second consecutive year, and "Best Executive/Business Class" for the third consecutive year. For more company information, visit http://www.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 2004 10-K and its other securities filings, including any amendments thereto, which identify important matters such as the consequences of our significant financial losses and high leverage, terrorist attacks, domestic and international economic conditions, the significant cost of aircraft fuel, labor costs, competition, and industry conditions, including the demand for air travel, the airline pricing environment and industry capacity decisions, regulatory matters and the seasonal nature of the airline business. 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.

PRELIMINARY TRAFFIC RESULTS SEPTEMBER 2005 2004 Change REVENUE PASSENGER MILES (000) Domestic 3,000,574 2,815,800 6.6 Percent International 2,520,504 2,244,782 12.3 Percent Transatlantic 1,446,512 1,246,784 16.0 Percent Latin America 505,938 513,621 -1.5 Percent Pacific 568,055 484,377 17.3 Percent Mainline 5,521,079 5,060,581 9.1 Percent Regional 671,442 577,374 16.3 Percent Consolidated 6,192,521 5,637,955 9.8 Percent AVAILABLE SEAT MILES (000) Domestic 3,795,900 3,791,879 0.1 Percent International 3,342,878 2,937,858 13.8 Percent Transatlantic 1,792,082 1,566,876 14.4 Percent Latin America 762,034 764,708 -0.3 Percent Pacific 788,762 606,274 30.1 Percent Mainline 7,138,777 6,729,736 6.1 Percent Regional 904,619 834,698 8.4 Percent Consolidated 8,043,397 7,564,434 6.3 Percent PASSENGER LOAD FACTOR Domestic 79.0 Percent 74.3 Percent 4.7 Points International 75.4 Percent 76.4 Percent -1.0 Points Transatlantic 80.7 Percent 79.6 Percent 1.1 Points Latin America 66.4 Percent 67.2 Percent -0.8 Points Pacific 72.0 Percent 79.9 Percent -7.9 Points Mainline 77.3 Percent 75.2 Percent 2.1 Points Regional 74.2 Percent 69.2 Percent 5.0 Points Consolidated 77.0 Percent 74.5 Percent 2.5 Points ONBOARD PASSENGERS Mainline 3,249,186 3,113,493 4.4 Percent Regional 1,239,635 1,078,820 14.9 Percent Consolidated 4,488,821 4,192,313 7.1 Percent CARGO REVENUE TON MILES (000) Total 82,972 84,763 -2.1 Percent PRELIMINARY TRAFFIC RESULTS YEAR-TO-DATE 2005 2004 Change REVENUE PASSENGER MILES (000) Domestic 29,853,959 28,466,521 4.9 Percent International 23,729,593 21,000,396 13.0 Percent Transatlantic 11,654,819 10,016,129 16.4 Percent Latin America 7,019,028 6,607,238 6.2 Percent Pacific 5,055,746 4,377,029 15.5 Percent Mainline 53,583,552 49,466,917 8.3 Percent Regional 6,581,865 5,447,291 20.8 Percent Consolidated 60,165,417 54,914,208 9.6 Percent AVAILABLE SEAT MILES (000) Domestic 36,664,999 36,837,133 -0.5 Percent International 30,357,522 26,970,602 12.6 Percent Transatlantic 14,436,433 12,470,798 15.8 Percent Latin America 9,235,208 8,903,683 3.7 Percent Pacific 6,685,881 5,596,121 19.5 Percent Mainline 67,022,521 63,807,735 5.0 Percent Regional 8,878,237 7,697,334 15.3 Percent Consolidated 75,900,758 71,505,069 6.1 Percent PASSENGER LOAD FACTOR Domestic 81.4 Percent 77.3 Percent 4.1 Points International 78.2 Percent 77.9 Percent 0.3 Points Transatlantic 80.7 Percent 80.3 Percent 0.4 Points Latin America 76.0 Percent 74.2 Percent 1.8 Points Pacific 75.6 Percent 78.2 Percent -2.6 Points Mainline 79.9 Percent 77.5 Percent 2.4 Points Regional 74.1 Percent 70.8 Percent 3.3 Points Consolidated 79.3 Percent 76.8 Percent 2.5 Points ONBOARD PASSENGERS Mainline 33,705,834 32,119,380 4.9 Percent Regional 11,861,733 10,110,365 17.3 Percent Consolidated 45,567,567 42,229,745 7.9 Percent CARGO REVENUE TON MILES (000) Total 744,977 749,557 -0.6 Percent PRELIMINARY OPERATIONAL AND FINANCIAL RESULTS SEPTEMBER 2005 2004 Change On-Time Performance (A) 79.5% 85.9% (6.4) Points Completion Factor (B) 96.9% 98.5% (1.6) Points YEAR-TO-DATE 2005 2004 Change On-Time Performance (A) 77.2% 78.4% (1.2) Points Completion Factor (B) 99.3% 99.5% (0.2) Points August 2005 consolidated breakeven load factor (C) 77.5 Percent August 2005 year-over-year consolidated RASM change 5.0 Percent August 2005 year-over-year mainline RASM change 4.7 Percent September 2005 estimated year-over-year consolidated RASM change 8.0-9.0 Percent September 2005 estimated year-over-year mainline RASM change 7.5-8.5 Percent September 2005 estimated average price per gallon of fuel, including fuel taxes 2.05 Dollars Third quarter 2005 estimated average price per gallon of fuel, including fuel taxes 1.87 Dollars September 2005 estimated consolidated breakeven load factor (C) 85 Percent September 2005 actual consolidated load factor (D) 77.0 Percent October 2005 estimated consolidated breakeven load factor (C) 89 Percent (A) Department of Transportation Arrivals within 14 minutes (B) Mainline Mileage Completion Percentage (C) 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. (D) Includes Continental Airlines and Continental Express