Continental Airlines Simplifies Fare Structure By Moving Fuel Surcharge Into Base Fares

26th Jul 2002

Effective immediately,
Continental Airlines (NYSE: CAL) removed the “fuel surcharge” from all fares
in the U.S. domestic and trans-border Canadian markets while increasing the
applicable fares by $40 to reflect the same final round-trip amount.

The cost to travelers is not affected by this change.  Continental made
the modification to simplify its fare structure and to expedite the fare-quote
process.  With the fuel surcharge in effect on approximately 65% percent of
Continental`s fares, this move eliminates the need to determine whether a
surcharge is applicable in a particular market or on a particular fare, and
allows the airline to more accurately reflect the full cost to the traveler in
the initial fare display.

The fuel charge was instituted in 2000 to help offset higher fuel costs.
On an average basis, a passenger`s round trip with four flight segments
accounts for 124 gallons of fuel consumption with a fuel cost of $89.70, based
on second quarter prices (72.34 cents per gallon).



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