Continental Reports Operational Performance

HOUSTON, July 1 /PRNewswire-FirstCall/—Continental Airlines (NYSE: CAL) today reported an all-time record systemwide mainline jet load factor of 81.0 percent for June 2003, 2.3 points above last year`s June load factor and 0.6 points above the previous record set in July 2000. Continental reported an all-time record domestic mainline jet load factor of 81.8 percent, 4.3 points above June 2002, and 2.6 points above the previous record of June 2000. Continental reported an international mainline jet load factor of 79.8 percent for June 2003.
During the month, Continental recorded a DOT on-time arrival rate of 81.4 percent and a systemwide completion factor of 99.9 percent for its mainline jet operations.
In June 2003, Continental flew 5.4 billion mainline jet revenue passenger miles (RPMs) and 6.6 billion mainline jet available seat miles (ASMs) systemwide, resulting in a traffic decrease of 1.5 percent and a capacity decrease of 4.3 percent compared to June 2002. Domestic mainline jet traffic was 3.3 billion RPMs in June 2003, up 3.4 percent from June 2002, and June 2003 domestic mainline jet capacity was 4.1 billion ASMs, down 2.0 percent from June 2002.
Systemwide June 2003 mainline jet passenger revenue per available seat mile (RASM) is estimated to be relatively flat compared to June 2002, with a year-over-year RASM change ranging from -1% to +1%, while showing improvement in the second half of the month. For May 2003, RASM increased 2.0 percent compared to May 2002.
Continental ended June 2003 with a record-high quarter end consolidated cash and short-term investments balance of approximately $1.62 billion (including $128 million of restricted cash), which is an increase of approximately $440 million since the end of the first quarter of 2003.
ExpressJet Airlines, a subsidiary of Continental Airlines doing business as Continental Express, separately reported an all-time record load factor of 73.5 percent for June 2003, 5.5 points above last year`s June load factor and 3.5 points above the previous record set last month. ExpressJet flew 538.9 million RPMs and 733.7 million ASMs in June 2003, resulting in a traffic increase of 55.9 percent and a capacity increase of 44.2 percent versus June 2002.
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 2002 10-K and its other securities filings, which identify important matters such as terrorist attacks, domestic and international economic conditions, the significant cost of aircraft fuel, labor costs, competition, regulatory matters and industry conditions, including the demand for air travel, the airline pricing environment and industry capacity decisions. The company undertakes no obligation to publicly update or revise any forward- looking statements to reflect events or circumstances that June arise after the date of this press release.