Continental Airlines reported a June consolidated (mainline plus regional) load factor of 83.6 percent, 2.1 points below the June 2007 consolidated load factor, and a mainline load factor of 84.1 percent, 2.0 points below the June 2007 mainline load factor.
Houston – In addition, the carrier reported a domestic mainline June load factor of 85.9 percent, 1.8 points below the June 2007 domestic load factor, and an international mainline load factor of 82.4 percent, 2.0 points below June 2007. During the month, Continental recorded a U.S. Department of Transportation on-time arrival rate of 67.5 percent and a mainline segment completion factor of 99.2 percent.
In June 2008, Continental flew 8.6 billion consolidated revenue passenger miles (RPMs) and 10.3 billion consolidated available seat miles (ASMs), resulting in a consolidated traffic decrease of 0.1 percent and a capacity increase of 2.5 percent as compared to June 2007. In June 2008, Continental flew 7.7 billion mainline RPMs and 9.2 billion mainline ASMs, resulting in a mainline traffic decrease of 0.9 percent and a mainline capacity increase of 1.4 percent as compared to June 2007. Domestic mainline traffic was 4.0 billion RPMs in June 2008, down 3.9 percent from June 2007, and domestic mainline capacity was 4.6 billion ASMs, down 1.9 percent from June 2007.
For June 2008, consolidated passenger revenue per available seat mile (RASM) is estimated to have increased between 4.0 and 5.0 percent compared to June 2007, while mainline passenger RASM is estimated to have increased between 3.5 and 4.5 percent compared to June 2007. For May 2008, consolidated passenger RASM increased 7.2 percent compared to May 2007, while mainline passenger RASM increased 6.4 percent compared to May 2007.
Continental ended the second quarter of 2008 with unrestricted cash and short-term investments balance of $3.41 billion. This balance includes net proceeds from the sale of 11 million shares of Continental’s Class B Common Stock as well as net proceeds from a term loan facility to finance pre-delivery deposits for new aircraft. The balance excludes all student loan-related auction rate securities.
On July 11, Continental expects to announce special charges recorded for the second quarter of 2008 related to its previously announced capacity reductions planned for later in 2008, including potential non-cash impairments on owned aircraft and related spare parts. Continental also expects to announce on that date other special items recorded during the second quarter relating to gains on the sale of its investment in COPA and on aircraft sold during the quarter and an adjustment to fair value of its investment in student loan-related auction rate securities.
In connection with Continental’s previously announced capacity reductions, Continental also anticipates that it will record additional accounting charges in the third quarter of 2008 and beyond relating to future costs of those reductions, including lease costs on grounded aircraft, severance and continuing medical coverage for furloughed employees and other associated costs. Continental is not able at this time to estimate the amount and timing of these future charges.
Continental’s regional operations had a June load factor of 79.7 percent, 3.1 points below the June 2007 regional load factor. Regional RPMs were 922.6 million and regional ASMs were 1,158.2 million in June 2008, resulting in a traffic increase of 7.5 percent and a capacity increase of 11.7 percent versus June 2007.
Continental Airlines is the world’s fifth largest airline. Continental, together with Continental Express and Continental Connection, has more than 3,100 daily departures throughout the Americas, Europe and Asia, serving 145 domestic and 138 international destinations. More than 550 additional points are served via SkyTeam alliance airlines. With more than 45,000 employees, Continental has hubs serving New York, Houston, Cleveland and Guam, and together with Continental Express, carries approximately 69 million passengers per year.
Continental consistently earns awards and critical acclaim for both its operation and its corporate culture. For the fifth consecutive year, FORTUNE magazine named Continental the No. 1 World’s Most Admired Airline on its 2008 list of World’s Most Admired Companies. 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 2007 10-K and its other securities filings, including any amendments thereto, which identify important matters such as the consequences of the company’s high leverage, the significant cost of aircraft fuel, the company’s transition to a new global alliance, delays in scheduled aircraft deliveries, its high labor and pension costs, service interruptions at one of its hub airports, disruptions to the operations of its regional operators, disruptions in its computer systems, and industry conditions, including the airline pricing environment, industry capacity decisions, industry consolidation, terrorist attacks, regulatory matters, excessive taxation, the availability and cost of insurance, public health threats, an economic downturn in the U.S. and global economies 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, except as required by applicable law.
