Continental Airlines reported a 2008 net loss of $585 million ($5.54 diluted loss per share). Excluding $234 million of previously announced special items, Continental recorded a net loss of $351 million ($3.32 diluted loss per share) for the year. Weakening economic conditions and highly volatile fuel prices presented financial challenges for the airline in the fourth quarter of 2008. Continental recorded a fourth-quarter net loss of $266 million ($2.33 diluted loss per share). Excluding $170 million of previously announced special items, Continental recorded a fourth-quarter net loss of $96 million ($0.84 diluted loss per share).

For the full year 2008, jet fuel prices exhibited significant volatility, reaching record high levels and dramatically increasing costs over 2007. Consolidated fuel cost totaled $5.9 billion in 2008, a $1.9 billion increase over 2007, with mainline fuel cost totaling $4.9 billion, a $1.6 billion increase over 2007. During the year, the price of a barrel of crude oil peaked at $147.27 on July 11 and then fell to a low of $32.40 on Dec. 19, the first time in almost five years that the price fell below $35. For 2008, mainline fuel cost was $3.27 per gallon, including a $0.10 per gallon net cost of effective fuel hedges. Total revenue for the fourth quarter was $3.5 billion, a decrease of 1.5 percent compared to the same period in 2007.

Consolidated revenue passenger miles (RPMs) for the fourth quarter decreased 8.1 percent year-over-year on a capacity decrease of 7.4 percent, resulting in a fourth-quarter consolidated load factor of 78.7 percent, 0.7 points lower than the fourth quarter 2007. Consolidated yield for the fourth quarter increased 5.7 percent year-over-year. Consolidated revenue per available seat mile (RASM) for the fourth quarter increased 4.8 percent year-over-year due to increased yields. Mainline RPMs in the fourth quarter of 2008 decreased 8.5 percent compared to the fourth quarter 2007, on a capacity decrease of 8 percent year-over-year. Mainline load factor was 79.3 percent, down 0.4 points year-over-year. Continental’s mainline yield increased 6.4 percent in the fourth quarter over the same period in 2007. As a result, fourth quarter 2008 mainline RASM was up 5.9 percent over the fourth quarter of 2007. For more information, visit www.continental.com.

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