Continental Airlines (NYSE: CAL) today reported a March consolidated (mainline plus regional) load factor of 82.6 percent, 1.4 points above the March 2006 consolidated load factor.
HOUSTON – The carrier reported a mainline load factor of 83.1 percent, 1.3 points above the March 2006 mainline load factor, and a domestic mainline load factor of 84.2 percent, 0.8 points above March 2006. All three were records for the month. In addition, the airline had an international mainline load factor of 81.9 percent, 2.1 points above March 2006.
During the month, Continental recorded a U.S. Department of Transportation on-time arrival rate of 71.2 percent and a March mainline completion factor of 97.6 percent.
In March 2007, Continental flew 8.0 billion consolidated revenue passenger miles (RPMs) and 9.6 billion consolidated available seat miles (ASMs), resulting in a traffic increase of 3.4 percent and a capacity increase of 1.8 percent as compared to March 2006. In March 2007, Continental flew 7.1 billion mainline RPMs and 8.5 billion mainline ASMs, resulting in a mainline traffic increase of 4.1 percent and a 2.4 percent increase in mainline capacity as compared to March 2006. Domestic mainline traffic was 3.8 billion RPMs in March 2007, up 2.4 percent from March 2006, and domestic mainline capacity was 4.6 billion ASMs, up 1.5 percent from March 2006.
For March 2007, consolidated passenger revenue per available seat mile (RASM) is estimated to have increased between 4.5 percent and 5.5 percent compared to March 2006, while mainline passenger RASM is estimated to have increased between 6.5 and 7.5 percent compared to March 2006. During the month of March, Continental’s operations were negatively impacted by major storms in the Northeast. Following the storms, the carrier was able to quickly recover operations minimizing the adverse impact to March operating revenue from flight cancellations, which drove ASMs lower. Continental estimates that the adverse revenue impact from these storms was approximately $10 million. Continental estimates that March mainline and consolidated year- over-year RASM percent changes were higher by about one point as a result of the storm’s impact on capacity (due to lower ASMs). For February 2007, consolidated passenger RASM increased 2.4 percent compared to February 2006, while mainline passenger RASM increased 3.8 percent from February 2006.
Continental ended the first quarter with unrestricted cash and short-term investments of approximately $2.64 billion.
March 2007 sales at continental.com increased 18 percent over March 2006.
Continental’s regional operations had a record March load factor of 78.4 percent, 0.9 points above the March 2006 load factor. Regional RPMs were 878.1 million and regional ASMs were 1,120.1 million in March 2007, resulting in a traffic decrease of 1.4 percent and a capacity decrease of 2.5 percent versus March 2006.
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 150 domestic and 136 international destinations. More than 400 additional points are served via SkyTeam alliance airlines. With more than 44,000 employees, Continental has hubs serving New York, Houston, Cleveland and Guam, and together with Continental Express, carries approximately 67 million passengers per year. Continental consistently earns awards and critical acclaim for both its operation and its corporate culture.
In 2006, Continental Airlines won its sixth J.D. Power and Associates award since 1996. The carrier received the highest rank in customer satisfaction among network carriers in North America in the J.D. Power and Associates 2006 Airline Satisfaction Index Survey(SM). For the fourth consecutive year, FORTUNE magazine named Continental the No. 1 Most Admired Global Airline on its 2007 list of Most Admired Global Companies. Continental was also named the No. 1 airline on the publication’s 2007 America’s Most Admired airline industry list. Additionally, Continental again won major awards at the OAG Airline of the Year Awards including „Best Airline Based in North America“ for the third year in a row, and „Best Executive/Business Class“ for the fourth consecutive year. 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 2006 10-K and its other securities filings, including any amendments thereto, which identify important matters such as the consequences of the company’s significant financial losses and high leverage, the significant cost of aircraft fuel, its high labor and pension costs, service interruptions at one of its hub airports, 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 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.
PRELIMINARY TRAFFIC RESULTS
MARCH 2007 2006 Change
REVENUE PASSENGER MILES (000)
Domestic 3,836,162 3,745,395 2.4 Percent
International 3,238,756 3,053,318 6.1 Percent
Transatlantic 1,512,874 1,396,553 8.3 Percent
Latin America 1,045,508 990,516 5.6 Percent
Pacific 680,374 666,249 2.1 Percent
Mainline 7,074,918 6,798,713 4.1 Percent
Regional 878,143 891,060 -1.4 Percent
Consolidated 7,953,061 7,689,773 3.4 Percent
AVAILABLE SEAT MILES (000)
Domestic 4,557,305 4,489,345 1.5 Percent
International 3,955,157 3,826,718 3.4 Percent
Transatlantic 1,870,665 1,769,559 5.7 Percent
Latin America 1,266,020 1,231,650 2.8 Percent
Pacific 818,472 825,509 -0.9 Percent
Mainline 8,512,462 8,316,063 2.4 Percent
Regional 1,120,072 1,149,341 -2.5 Percent
Consolidated 9,632,534 9,465,404 1.8 Percent
PASSENGER LOAD FACTOR
Domestic 84.2 Percent 83.4 Percent 0.8 Points
International 81.9 Percent 79.8 Percent 2.1 Points
Transatlantic 80.9 Percent 78.9 Percent 2.0 Points
Latin America 82.6 Percent 80.4 Percent 2.2 Points
Pacific 83.1 Percent 80.7 Percent 2.4 Points
Mainline 83.1 Percent 81.8 Percent 1.3 Points
Regional 78.4 Percent 77.5 Percent 0.9 Points
Consolidated 82.6 Percent 81.2 Percent 1.4 Points
ONBOARD PASSENGERS
Mainline 4,438,799 4,321,013 2.7 Percent
Regional 1,572,177 1,579,331 -0.5 Percent
Consolidated 6,010,976 5,900,344 1.9 Percent
CARGO REVENUE TON MILES (000)
Total 93,119 98,866 -5.8 Percent
PRELIMINARY TRAFFIC RESULTS
YEAR-TO-DATE 2007 2006 Change
REVENUE PASSENGER MILES (000)
Domestic 10,388,016 9,968,726 4.2 Percent
International 8,702,403 8,049,368 8.1 Percent
Transatlantic 3,957,956 3,550,650 11.5 Percent
Latin America 2,902,063 2,697,336 7.6 Percent
Pacific 1,842,384 1,801,382 2.3 Percent
Mainline 19,090,419 18,018,094 6.0 Percent
Regional 2,359,387 2,317,951 1.8 Percent
Consolidated 21,449,806 20,336,045 5.5 Percent
AVAILABLE SEAT MILES (000)
Domestic 12,815,482 12,308,647 4.1 Percent
International 11,308,601 10,725,686 5.4 Percent
Transatlantic 5,296,254 4,845,169 9.3 Percent
Latin America 3,614,142 3,475,827 4.0 Percent
Pacific 2,398,205 2,404,690 -0.3 Percent
Mainline 24,124,083 23,034,333 4.7 Percent
Regional 3,125,657 3,081,947 1.4 Percent
Consolidated 27,249,740 26,116,280 4.3 Percent
PASSENGER LOAD FACTOR
Domestic 81.1 Percent 81.0 Percent 0.1 Points
International 77.0 Percent 75.0 Percent 2.0 Points
Transatlantic 74.7 Percent 73.3 Percent 1.4 Points
Latin America 80.3 Percent 77.6 Percent 2.7 Points
Pacific 76.8 Percent 74.9 Percent 1.9 Points
Mainline 79.1 Percent 78.2 Percent 0.9 Points
Regional 75.5 Percent 75.2 Percent 0.3 Points
Consolidated 78.7 Percent 77.9 Percent 0.8 Points
ONBOARD PASSENGERS
Mainline 11,945,262 11,485,543 4.0 Percent
Regional 4,230,792 4,107,835 3.0 Percent
Consolidated 16,176,054 15,593,378 3.7 Percent
CARGO REVENUE TON MILES (000)
Total 254,267 263,003 -3.3 Percent
PRELIMINARY OPERATIONAL AND FINANCIAL RESULTS
MARCH 2007 2006 Change
On-Time Performance(1) 71.2% 71.0% 0.2 Points
Completion Factor(2) 97.6% 99.7% (2.1)Points
February 2007 year-over-year
consolidated RASM change 2.4 Percent
February 2007 year-over-year mainline
RASM change 3.8 Percent
March 2007 estimated year-over-year
consolidated RASM change 4.5 - 5.5 Percent
March 2007 estimated year-over-year
mainline RASM change 6.5 - 7.5 Percent
March 2007 estimated average price
per gallon of fuel, including fuel
taxes 1.89 Dollars
First Quarter 2007 estimated average
price per gallon of fuel, including
fuel taxes 1.90 Dollars
(1) Department of Transportation Arrivals within 14 minutes
(2) Mainline Mileage Completion Percentage
SOURCE Continental Airlines
