Weak economic environment continued to impact results HOUSTON, Jan.
21 /PRNewswire-FirstCall/ -- Continental Airlines (NYSE: CAL) today
announced a 2009 full-year net loss of $282 million ($2.18 diluted
loss per share). Excluding $145 million of previously announced
special charges, and a $158 million non-cash income tax benefit,
Continental recorded a net loss of $295 million ($2.28 diluted loss
per share) for the year. For the fourth quarter of 2009,
Continental reported a fourth quarter net income of $85 million
($0.60 diluted earnings per share). Excluding $77 million of
previously announced special charges, and a $158 million non-cash
income tax benefit, Continental recorded a fourth quarter net
income of $4 million ($0.03 diluted earnings per share). Full-year
2009 and fourth-quarter results continued to be adversely affected
by declines in high yield traffic due to the global recession. "My
co-workers have done a superb job working through enormous
challenges in 2009, while providing the best customer service and
product in the business," said Jeff Smisek, Continental's chairman,
president and chief executive officer. "While we are seeing some
business traffic increasing, we likely have a long and slow road to
recovery. We remain focused on achieving and maintaining
profitability." Fourth Quarter Revenue and Capacity Total revenue
for the fourth quarter of 2009 was $3.2 billion, a decrease of 8.3
percent compared to the same period in 2008. Passenger revenue for
the fourth quarter fell 9.5 percent ($296 million) compared to the
same period in 2008 due to lower yields. Consolidated revenue
passenger miles (RPMs) for the fourth quarter of 2009 increased 3.5
percent on a capacity (available seat mile, ASM) decrease of 0.6
percent year-over-year. Consolidated load factor was a fourth
quarter record 82.0 percent, 3.3 points higher than the fourth
quarter of 2008. Consolidated yield for the quarter decreased 12.6
percent year-over-year. As a result, fourth quarter 2009
consolidated passenger revenue per available seat mile (RASM)
decreased 9.0 percent year-over-year. Mainline RPMs in the fourth
quarter of 2009 increased 3.7 percent on a mainline capacity
decrease of 0.5 percent year-over-year. Mainline load factor of
82.6 percent was also a fourth quarter record, up 3.3 points
year-over-year. Continental's mainline yield decreased 13.6 percent
in the fourth quarter over the same period in 2008. As a result,
fourth quarter 2009 mainline RASM was down 9.9 percent compared to
the fourth quarter of 2008. Passenger revenue for the fourth
quarter of 2009 and period-to-period comparisons of related
statistics by geographic region for the company's mainline
operations and regional operations are as follows: Percentage
Increase (Decrease) in Passenger Fourth Quarter 2009 vs. Fourth
Quarter 2008 Revenue -------------------------------------------
(in millions) ------------- Passenger Revenue ASMs ------- ----
Domestic $1,166 (9.8)% 0.4 % Trans-Atlantic 548 (16.3)% (11.0)%
Latin America 357 (8.1)% 5.5 % Pacific 234 (1.2)% 16.1 % Total
Mainline $2,305 (10.4)% (0.5)% Regional $502 (5.4)% (1.4)%
Consolidated $2,807 (9.5)% (0.6)% Percentage Increase (Decrease) in
Fourth Quarter 2009 vs. Fourth Quarter 2008
------------------------------------------- RASM Yield ---- -----
Domestic (10.2)% (12.3)% Trans-Atlantic (6.0)% (14.8)% Latin
America (12.9)% (14.6)% Pacific (14.9)% (16.5)% Total Mainline
(9.9)% (13.6)% Regional (4.0)% (7.5)% Consolidated (9.0)% (12.6)%
Cargo revenue in the fourth quarter of 2009 decreased 6.1 percent
($7 million) compared to the same period in 2008, principally due
to lower year-over-year fuel surcharges. Other revenue during the
fourth quarter of 2009 was $14 million higher than the prior year
due primarily to higher bag fee revenue. Fourth Quarter Operations
Continental's employees earned a total of $3 million in cash
incentives for on-time performance during the quarter. The company
recorded a U.S. Department of Transportation (DOT) on-time arrival
rate of 77.2 percent and a systemwide mainline segment completion
factor of 99.4 percent during the quarter. Global Reach with Star
Alliance Continental Airlines joined Star Alliance in the fourth
quarter of 2009, providing significantly improved benefits to
customers including access to the world's largest airline network
and reciprocal frequent flier and airport lounge benefits with Star
Alliance's 25 other member airlines around the world. "Thanks to
the focus and hard work of my co-workers, we successfully
transitioned to Star Alliance," said Jim Compton, Continental's
executive vice president and chief marketing officer. "Our hubs are
a perfect fit for Star Alliance and our customers now enjoy a
network second to none." To enhance connectivity with Star Alliance
member carriers, Continental launched nonstop service between
Houston and Frankfurt, Germany on Nov. 1, 2009 and announced that
it will launch daily nonstop service between its New York hub at
Newark Liberty International Airport and Munich beginning March 27,
2010. Also in connection with joining Star Alliance, the company
began service to several new destinations during the quarter,
including nonstop service between Houston and Edmonton, Canada, and
daily nonstop service from Houston and Cleveland to Washington
Dulles International Airport. In addition, Continental began new
service from Guam and Honolulu to Nadi, Fiji on Dec. 18, 2009. To
facilitate easy connections between Continental's flights and those
of other Star Alliance airlines, Continental successfully relocated
its operations at several key airports, including Chicago,
Frankfurt, Narita, Honolulu and Beijing. Continental, United and
All Nippon Airways (ANA) filed an application with the DOT for
antitrust immunity to enable the three carriers to create a more
efficient and comprehensive trans-Pacific network, generating
substantial service and pricing benefits for consumers. The
trans-Pacific joint venture - the first of its kind between the
U.S. and Asia - will also enable Continental, United and ANA to
compete more effectively with other global alliances, each of which
has a significant presence in Tokyo. Notable Product Enhancements
Continental's first aircraft with new flat-bed BusinessFirst seats
took to the skies in the fourth quarter of 2009, with installation
complete on three aircraft; two Boeing 777s and a 757-200. Flat-bed
seats are being installed on Continental's entire fleet of Boeing
777, 757-200, 767-200 and substantially all of its 767-400
aircraft, and on its Boeing 787 fleet as the aircraft are delivered
to Continental. Continental continued to install DIRECTV® on its
aircraft during the quarter, with the new service now offered on 53
aircraft. DIRECTV® offers customers the choice of more than 100
channels of live television and previously recorded programming.
The company has completed installation of DIRECTV® on its Boeing
737-900ER fleet and expects to complete installation of DIRECTV® on
its entire fleet of Boeing 737 Next-Generation aircraft by the end
of 2010. Continental announced that this summer, it will begin
installing Gogo Inflight Internet service on its fleet of 21 Boeing
757-300 aircraft. Cashless cabin was introduced to Continental's
customers in the fourth quarter of 2009. Flight crews now accept
credit and debit cards exclusively for on-board purchases (except
duty-free) on Continental flights. Continental was recognized many
times for its product and services during the fourth quarter of
2009. The company was named the Best Large Domestic Airline for
Premium Class and Best Value for the Money (International) among
all airlines in Zagat's 2009 Airline Survey. Continental won top
honors in two categories in the 2009 OAG Airline Industry Awards,
"Best Executive/Business Class" and "Best Airline Based in North
America" and Continental outranked its U.S. network competitors to
take top honors in Business Travel News' Annual Airline Survey for
the second consecutive year. Fourth Quarter Costs Due primarily to
significantly lower jet fuel costs, Continental's mainline cost per
available seat mile (CASM) decreased 8.6 percent in the fourth
quarter compared to the same period last year. The average mainline
price of a gallon of fuel dropped 31.7 percent year-over-year and
mainline fuel consumption fell by 1.5 percent. Holding fuel rate
constant and excluding special charges, fourth quarter 2009
mainline CASM increased 1.4 percent compared to the fourth quarter
of 2008, on a mainline ASM decline of 0.5 percent. "Our entire team
has done an excellent job holding the line on costs and working
more efficiently," said Zane Rowe, Continental's executive vice
president and chief financial officer. "As you see with our new
aircraft, flat-bed seats, DIRECTV® and audio video on demand, we
will continue to invest in our product where it makes sense." Fuel
expense for the quarter declined $388 million (32.4 percent)
compared to the same period in 2008 as a result of a decrease in
fuel prices and lower volumes. Fleet Changes Continue to Improve
Efficiency Continental continued to improve fuel efficiency during
the quarter by retiring older aircraft and adding modern,
fuel-efficient aircraft to its fleet. During the quarter, the
company took delivery of one new Boeing 737-900ER and three leased
Boeing 757-300 aircraft. In addition, Continental removed from
service four older Boeing 737-300 aircraft. Continental's young,
fuel-efficient fleet continues to provide a natural hedge against
the cost of jet fuel. Continental continued to install winglets on
its fleet of Boeing 757-300 aircraft. All of the company's
737-500s, 700s, 800s, 900s and 757-200s have winglets. The company
expects to complete installation of winglets on its entire
narrowbody fleet by the end of the second quarter of 2010.
Continental is scheduled to take delivery of 12 Boeing 737 aircraft
and two Boeing 777 aircraft in 2010, and expects to take delivery
of one leased Boeing 757-300 aircraft in the first quarter of 2010.
By the end of the first quarter of 2010, the company expects to
remove from service its last three Boeing 737-300 aircraft. Cash
and Liquidity Continental ended the fourth quarter with $2.86
billion in unrestricted cash and short-term investments. During the
fourth quarter, Continental completed the sale of $644 million of
enhanced equipment trust certificates to be secured by a total of
19 owned aircraft. A portion of the proceeds from the sale of the
certificates will be used to finance the company's purchase of nine
new Boeing 737-800 and two Boeing 777 aircraft and the remainder of
the proceeds will be used for general corporate purposes. The funds
are expected to be received in the first half of 2010. Also in the
fourth quarter, the company issued $230 million of 4.5% convertible
debt. The notes mature on Jan. 15, 2015, and are convertible into
Continental's common stock at an initial conversion price of
approximately $19.87 per share. 2009 in Review During 2009,
Continental took a number of steps to strengthen its cash balance
and competitive position, and continued to distinguish itself from
competitors. Continental: -- Raised approximately $1.7 billion
through the issuance of enhanced equipment trust certificates,
other new secured borrowings, convertible debt and common stock. --
Inaugurated daily nonstop service between New York and Shanghai,
linking the world's leading financial center and top business and
tourism destination with China's center for finance and trade. In
addition, Continental began daily nonstop service between its
Houston hub and Frankfurt and between Houston and Rio de Janeiro.
-- Took delivery of 13 Boeing 737-900ER and three leased Boeing
757-300 aircraft. In addition, the company removed from service 20
Boeing 737-300 aircraft and eight Boeing 737-500 aircraft. --
Delivered solid operational performance, operating 101 days without
a single mainline flight cancellation. The company recorded a DOT
mainline segment completion factor of 99.5 percent and a systemwide
on-time arrival rate of 78.8 percent for the year. -- Rated as the
top airline on FORTUNE magazine's World's Most Admired Airline on
its 2009 list of World's Most Admired Companies for the sixth
consecutive year. -- Became the first commercial carrier to
successfully demonstrate the use of sustainable biofuel to power an
aircraft in North America. -- Paid employees $25 million ($595 per
employee) in cash incentive payments for monthly on-time
performance. -- Contributed $176 million to its defined benefit
pension plans. In addition, the company contributed $34 million to
its defined benefit pension plans in January 2010. Since the
beginning of 2002, Continental has contributed approximately $1.8
billion to its defined benefit pension plans. -- Provided
scholarships to 210 employees and dependents through the
Continental Scholarship Fund, which is the largest number of awards
ever made by the fund. Since 2002, the scholarship fund has
assisted 1,235 employees or their dependents. Scholarship funds are
donated by employees and raised by the Continental Management
Association. -- Donated nearly $1 million through Continental's WE
CARE Employee Fund, which assisted 437 employees in times of need.
Corporate Background Continental Airlines is the world's fifth
largest airline. Continental, together with Continental Express and
Continental Connection, has more than 2,500 daily departures
throughout the Americas, Europe and Asia, serving 133 domestic and
135 international destinations. Continental is a member of Star
Alliance, which overall offers 19,700 daily flights to 1,077
airports in 175 countries through its 26 member airlines. With more
than 41,000 employees, Continental has hubs serving New York,
Houston, Cleveland and Guam, and together with its regional
partners, carries approximately 63 million passengers per year.
Continental Airlines will conduct a regular quarterly telephone
briefing today to discuss these results and the company's financial
and operating outlook with the financial community and news media
at 9:30 a.m. CT/10:30 a.m. ET. To listen to a live broadcast of
this briefing, go to continental.com/About Continental /Investor
Relations. 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 2008 Form 10-K and its other securities filings,
including any amendments thereto, which identify important matters
such as the significant volatility in the cost of aircraft fuel,
the company's transition to a new global alliance, the consequences
of its high leverage and other significant capital commitments, its
high labor and pension costs, delays in scheduled aircraft
deliveries, 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 recession in the U.S. and global economies, the
airline pricing environment, terrorist attacks, regulatory matters,
excessive taxation, industry consolidation, the availability and
cost of insurance, public health threats 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. CONTINENTAL
AIRLINES, INC. AND SUBSIDIARIES STATEMENTS OF OPERATIONS(A) (In
millions, except per share data) (Unaudited) Three Months % Ended
December 31, Increase 2009 2008 (Decrease) ---- ---- ----------
Operating Revenue: Passenger (excluding fees and taxes of $355,
$345, $1,476 and $1,531) $2,807 $3,103 (9.5)% Cargo 107 114 (6.1)%
Other 268 254 5.5% --- --- 3,182 3,471 (8.3)% ----- ----- Operating
Expenses: Aircraft fuel and related taxes(B) 809 1,197 (32.4)%
Wages, salaries and related costs 779 760 2.5 % Aircraft rentals
229 240 (4.6)% Regional capacity purchase, net(B) 206 221 (6.8)%
Landing fees and other rentals 194 210 (7.6)% Distribution costs
157 159 (1.3)% Maintenance, materials and repairs 144 135 6.7%
Depreciation and amortization 141 111 27.0% Passenger services 91
91 - Special charges(C) 77 40 NM Other 354 332 6.6 % --- --- 3,181
3,496 (9.0)% ----- ----- Operating Income(Loss) 1 (25) NM --- ---
Nonoperating Income(Expense): Interest expense (93) (97) (4.1)%
Interest capitalized 8 8 - Interest income 2 8 (75.0)% Other, net
10 (161) NM --- ---- (73) (242) (69.8)% --- ---- Loss before Income
Taxes (72) (267) (73.0)% Income Tax Benefit(Expense)(D) 157 (2) NM
--- --- Net Income(Loss) $85 $(269) NM === ===== Earnings(Loss)per
Share: Basic $0.61 $(2.35) NM ===== ====== Diluted $0.60 $(2.35) NM
===== ====== Sharesused for Computation: Basic 138 114 21.1%
Diluted 142 114 24.6% Year Ended % December 31, Increase 2009 2008
(Decrease) ---- ---- ---------- Operating Revenue: Passenger
(excluding fees and taxes of $355, $345, $1,476 and $1,531) $11,138
$13,737 (18.9)% Cargo 366 497 (26.4)% Other 1,082 1,007 7.4% -----
----- 12,586 15,241 (17.4)% ------ ------ Operating Expenses:
Aircraft fuel and related taxes(B) 3,317 5,919 (44.0)% Wages,
salaries and related costs 3,137 2,957 6.1 % Aircraft rentals 934
976 (4.3)% Regional capacity purchase, net(B) 848 1,059 (19.9)%
Landing fees and other rentals 841 853 (1.4)% Distribution costs
624 717 (13.0)% Maintenance, materials and repairs 617 612 0.8%
Depreciation and amortization 494 438 12.8 % Passenger services 373
406 (8.1)% Special charges(C) 145 181 NM Other 1,402 1,437 (2.4)%
----- ----- 12,732 15,555 (18.1)% ------ ------ Operating
Income(Loss) (146) (314) (53.5)% ---- ---- Nonoperating
Income(Expense): Interest expense (367) (376) (2.4)% Interest
capitalized 33 33 - Interest income 12 65 (81.5)% Other, net 29
(103) NM --- ---- (293) (381) (23.1)% ---- ---- Loss before Income
Taxes (439) (695) (36.8)% Income Tax Benefit(Expense)(D) 157 109
44.0% --- --- Net Income(Loss) $(282) $(586) (51.9)% ===== =====
Earnings(Loss)per Share: Basic $(2.18) $(5.54) (60.6)% ======
====== Diluted $(2.18) $(5.54) (60.6)% ====== ====== Sharesused for
Computation: Basic 129 106 21.7 % Diluted 129 106 21.7 % (A) On
January 1, 2009, Continental adopted the Cash Conversion
Subsections of the Financial Accounting Standards Board's
Accounting Standards Codification Subtopic 470-20, "Debt with
Conversion and Other Options - Cash Conversion," which clarify the
accounting for convertible debt instruments that may be settled in
cash (including partial cash settlement) upon conversion. The
financial statements for the three months and year ended December
31, 2008, have been (A) adjusted to reflect the company's adoption
of this standard. (B) Expense related to fuel and related taxes on
flights operated for us by other operators under capacity purchase
agreements is now included in aircraft fuel and related taxes,
whereas it was previously reported in regional capacity purchase,
net. Reclassifications have been made in these financial statements
to conform to the company's current presentation. These
reclassifications do not affect operating loss or net loss for any
period. (C) Operating Expenses: Special Charges. Includes the
following (in millions): Three Months Year Ended Ended December 31,
December 31, 2009 2008 2009 2008 ---- ---- ---- ----
Aircraft-related charges $36 $(5) $89 $40 Pension settlement
charges 29 44 29 52 Severance - 1 5 34 Route impairment and other
12 - 22 55 --- --- --- --- Special charges $77 $40 $145 $181 ===
=== ==== ==== (D) Income taxes. The company recorded a $158 million
non-cash income tax benefit from continuing operations during the
fourth quarter of 2009. Under current accounting rules, the company
is required to consider all items (including items recorded in
other comprehensive income) in determining the amount of tax
benefit that results from a loss from continuing operations and
that should be allocated to continuing operations. As a result, the
Company will record a tax benefit on the loss from continuing
operations for the year, which will be exactly offset by income tax
expense on other comprehensive income. However, while the income
tax benefit from continuing operations is reported on the income
statement, the income tax expense on other comprehensive income is
recorded directly to other comprehensive income, which is a
component of stockholders' equity. Because the income tax expense
on other comprehensive income is equal to the income tax benefit
from continuing operations, the company's year- end net deferred
tax position is not impacted by this tax allocation. The company
also recorded $1 million of tax expense related to state and
foreign tax expense. CONTINENTAL AIRLINES, INC. AND SUBSIDIARIES
STATISTICS Three Months % Ended December 31, Increase 2009 2008
(Decrease) ---- ---- ---------- Mainline Operations: Passengers
(thousands) 10,954 10,968 (0.1)% Revenue passenger miles (millions)
19,235 18,548 3.7% Available seat miles (millions) 23,288 23,402
(0.5)% Cargo ton miles (millions) 284 236 20.3% Passenger load
factor: Mainline 82.6% 79.3% 3.3 pts. Domestic 84.6% 82.6% 2.0 pts.
International 80.5% 75.8% 4.7 pts. Passenger revenue per available
seat mile (cents) 9.90 10.99 (9.9)% Total revenue per available
seat mile (cents) 11.44 12.51 (8.6)% Average yield per revenue
passenger mile (cents) 11.98 13.87 (13.6)% Average fare per revenue
passenger $212.04 $236.87 (10.5)% Cost per available seat mile
(CASM) (cents) (A) 11.22 12.27 (8.6)% Special charges per available
seat mile (cents) 0.28 0.17 NM CASM, holding fuel rate constant and
excluding special charges (cents) 12.27 12.10 1.4% Average price
per gallon of fuel, including fuel taxes $2.00 $2.93 (31.7)% Fuel
gallons consumed (millions) 334 339 (1.5)% Aircraft in fleet at end
of period (B) 337 350 (3.7)% Average length of aircraft flight
(miles) 1,552 1,489 4.2% Average daily utilization of each aircraft
(hours) 10:12 10:14 (0.5)% Regional Operations: Passengers
(thousands) 4,304 4,215 2.1% Revenue passenger miles (millions)
2,327 2,277 2.2% Available seat miles (millions) 3,002 3,046 (1.4)%
Passenger load factor 77.5% 74.7% 2.8 pts. Passenger revenue per
available seat mile (cents) 16.74 17.44 (4.0)% Average yield per
revenue passenger mile (cents) 21.59 23.33 (7.5)% Aircraft in fleet
at end of period (C) 264 282 (6.4)% Consolidated Operations
(Mainline and Regional): Passengers (thousands) 15,258 15,183 0.5%
Revenue passenger miles (millions) 21,562 20,825 3.5% Available
seat miles (millions) 26,290 26,448 (0.6)% Passenger load factor
82.0% 78.7% 3.3 pts. Passenger revenue per available seat mile
(cents) 10.68 11.73 (9.0)% Average yield per revenue passenger mile
(cents) 13.02 14.90 (12.6)% Average price per gallon of fuel
including fuel taxes $2.00 $2.91 (31.3)% Fuel gallons consumed
(millions) 405 411 (1.5)% Year Ended % December 31, Increase 2009
2008 (Decrease) ---- ---- ---------- Mainline Operations:
Passengers (thousands) 45,573 48,682 (6.4)% Revenue passenger miles
(millions) 79,824 82,806 (3.6)% Available seat miles (millions)
97,407 102,527 (5.0)% Cargo ton miles (millions) 948 1,005 (5.7)%
Passenger load factor: Mainline 81.9% 80.8% 1.1 pts. Domestic 84.8%
83.3% 1.5 pts. International 79.2% 78.2% 1.0 pts. Passenger revenue
per available seat mile (cents) 9.49 11.10 (14.5)% Total revenue
per available seat mile (cents) 10.92 12.51 (12.7)% Average yield
per revenue passenger mile (cents) 11.58 13.75 (15.8)% Average fare
per revenue passenger $204.89 $236.26 (13.3)% Cost per available
seat mile (CASM) (cents) (A) 10.75 12.44 (13.6)% Special charges
per available seat mile (cents) 0.13 0.15 NM CASM, holding fuel
rate constant and excluding special charges (cents) 12.48 12.29
1.5% Average price per gallon of fuel, including fuel taxes $1.98
$3.27 (39.4)% Fuel gallons consumed (millions) 1,395 1,498 (6.9)%
Aircraft in fleet at end of period (B) 337 350 (3.7)% Average
length of aircraft flight (miles) 1,550 1,494 3.7 % Average daily
utilization of each aircraft (hours) 10:37 11:06 (4.4)% Regional
Operations: Passengers (thousands) 17,236 18,010 (4.3)% Revenue
passenger miles (millions) 9,312 9,880 (5.7)% Available seat miles
(millions) 12,147 12,984 (6.4)% Passenger load factor 76.7% 76.1%
0.6 pts. Passenger revenue per available seat mile (cents) 15.59
18.14 (14.1)% Average yield per revenue passenger mile (cents)
20.34 23.83 (14.6)% Aircraft in fleet at end of period (C) 264 282
(6.4)% Consolidated Operations (Mainline and Regional): Passengers
(thousands) 62,809 66,692 (5.8)% Revenue passenger miles (millions)
89,136 92,686 (3.8)% Available seat miles (millions) 109,554
115,511 (5.2)% Passenger load factor 81.4% 80.2% 1.2 pts. Passenger
revenue per available seat mile (cents) 10.17 11.89 (14.5)% Average
yield per revenue passenger mile (cents) 12.50 14.82 (15.7)%
Average price per gallon of fuel including fuel taxes $1.97 $3.27
(39.8)% Fuel gallons consumed (millions) 1,681 1,809 (7.1)% (A)
Includes impact of special charges. Excludes ten grounded Boeing
737-300 aircraft, seven grounded Boeing 737-500 aircraft and two
leased Boeing 757-300 aircraft delivered but (B) not yet placed in
service at December 31, 2009. Consists of aircraft operated under
capacity purchase agreements with Continental's regional carriers
ExpressJet, Colgan, Chautauqua and CommutAir. Excludes 25 EMB-135
that are temporarily grounded aircraft and 32 ERJ-145 aircraft and
five EMB-135 aircraft subleased to other operators but are not
operated on the company's (C) behalf at December 31, 2009.
CONTINENTAL AIRLINES, INC. AND SUBSIDIARIES NON-GAAP FINANCIAL
MEASURES Net Income (Loss) (in millions) Three Months Ended Year
Ended December 31, 2009 December 31, 2009 -----------------
----------------- Net income (loss) $85 $(282) Special items:
Special charges (net of tax of $0) 77 145 Income tax benefit (158)
(158) ---- ---- Net income (loss), excluding special items (A) $4
$(295) === ===== Earnings (Loss) per Share Three Months Ended Year
Ended December 31, 2009 December 31, 2009 -----------------
----------------- Diluted earnings (loss) per share $0.60 $(2.18)
Special items: Special charges 0.54 1.12 Income tax benefit (1.11)
(1.22) ----- ----- Diluted earnings (loss) per share, excluding
special items (A) $0.03 $(2.28) ===== ====== CASM Mainline
Operations (cents) Three Months Ended % December 31, Increase/ 2009
2008 (Decrease) ---- ---- ---------- Cost per available seat mile
(CASM) 11.22 12.27 (8.6)% Less: Special charges (0.28) (0.17) NM
----- ----- CASM, excluding special charges (A) 10.94 12.10 (9.6)%
Less: Current year fuel cost per available seat mile (B) (2.86) -
NM Add: Current year fuel cost at prior year fuel price per
available seat mile (B) 4.19 - NM ---- --- CASM, holding fuel rate
constant and excluding special charges (A) 12.27 12.10 1.4% =====
===== CASM Mainline Operations (cents) Year Ended % December 31,
Increase/ 2009 2008 (Decrease) ---- ---- ---------- Cost per
available seat mile (CASM) 10.75 12.44 (13.6)% Less: Special
charges (0.13) (0.15) NM ----- ----- CASM, excluding special
charges (A) 10.62 12.29 (13.6)% Less: Current year fuel cost per
available seat mile (B) (2.83) - NM Add: Current year fuel cost at
prior year fuel price per available seat mile (B) 4.69 - NM ----
--- CASM, holding fuel rate constant and excluding special charges
(A) 12.48 12.29 1.5% ===== ===== These financial measures provide
management and investors the ability to measure and monitor
Continental's performance on a consistent (A) basis. Both the cost
and availability of fuel are subject to many economic (B) and
political factors and are therefore beyond the company's control.
DATASOURCE: Continental Airlines CONTACT: Corporate Communications
of Continental Airlines, +1-713-324-5080, Web Site:
http://www.continental.com/
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