HOUSTON, July 1 /PRNewswire-FirstCall/—Continental Airlines (NYSE: CAL)
today reported a June 2002 systemwide mainline jet load factor of
78.7 percent, 0.7 points above last year`s June load factor. For June 2002,
Continental reported a domestic mainline jet load factor of 77.5 percent and
an international mainline jet load factor of 80.5 percent.
Continental also reported an after tax special charge of $96 million
($152 million pre-tax) primarily related to the impairment and accrual of
lease exit costs of its MD-80 and turboprop fleet. Continental also recorded
an after tax charge of $8 million ($12 million pre-tax) to write down its
receivable from the U.S. government related to the Air Transportation Safety
and System Stabilization Act grant program as a result of the finalization of
its application for that grant. Both of these charges were recorded in the
quarter ended June 30, 2002.
Continental reported an on-time arrival rate of 81.5 percent and a
completion factor of 99.7 percent for its mainline jet operations in June
In June 2002, Continental flew 5.5 billion mainline jet revenue passenger
miles (RPMs) systemwide and 6.9 billion mainline jet available seat miles
(ASMs), resulting in a traffic decrease of 7.8 percent and a capacity decrease
of 8.6 percent as compared to June 2001. Domestic mainline jet traffic was
3.2 billion RPMs in June 2002, down 11.1 percent from June 2001, and June 2002
domestic mainline jet capacity was 4.1 billion ASMs, down 11.3 percent from
June last year.
Estimated June 2002 mainline jet passenger revenue per available seat mile
(RASM) decreased between 5 and 7 percent compared to June 2001 as a result of
lower year-over-year yields, slightly offset by higher load factors. For May
2002, RASM declined 6.3 percent as compared to May 2001.
Continental expects to report it ended the second quarter with a cash
balance of approximately $1.3 billion.
Consolidated breakeven load factor for July 2002 is estimated to be
79.0 percent. Actual consolidated breakeven load factor may vary
significantly from this estimate 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.
On June 28, 2002, Standard & Poor`s lowered its debt ratings for all of
Continental`s debt securities, except bond-insured obligations. Continental`s
corporate credit rating was reduced from BB- to B+ and its unsecured credit
rating was reduced from B to B-.
ExpressJet Airlines, a subsidiary of Continental Airlines doing business
as Continental Express, separately reported a load factor of 68.0 percent for
June 2002, 0.9 points below last year`s June load factor. ExpressJet flew
345.8 million RPMs and 508.7 million ASMs in June 2002, resulting in a traffic
increase of 8.5 percent and a capacity increase of 10.0 percent versus June
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. In connection therewith,
please see the risk factors set forth in the Company`s 2001 10-K and its other
securities filings, which identify important matters such as terrorist
attacks, the significant cost of aircraft fuel, labor costs, currency risk,
competition and industry conditions, regulatory matters and the seasonal
nature of the airline business, that could cause actual results to differ
materially from those in the forward-looking statements.