Co-workers? pr= CONTINENTAL AIRLINES ANNOUNCES THIRD QUARTER PROFIT =0A =0ACo-workers=92 pr= ofit sharing pool now exceeds $100 million=0A =0AHOUSTON, October 19, 2006 = -- Continental Airlines (NYSE: CAL) today reported third quarter 2006 net i= ncome of $237 million ($2.17 diluted earnings per share), which includes a = $92 million gain on the sale of a portion of the company=92s investment in = Copa Airlines. Excluding net special charges of $1 million and the $92 mil= lion Copa gain, Continental recorded net income of $146 million ($1.36 dilu= ted earnings per share). =0AOperating income for the third quarter was $192= million, an $83 million improvement over the same period of 2005, despite = fuel price increases costing over $155 million and the negative impact of i= ncreased security measures that took effect on Aug. 10. In addition, resul= ts for the third quarter of 2006 include a $42 million accrual for employee= profit sharing, bringing the cumulative accrued profit sharing pool to ove= r $100 million. =0A =93Thanks to the hard work of my co-workers, we are = delivering great results, both financially and operationally,=94 said Larry= Kellner, Continental=92s chairman and chief executive officer. =93When we= work together, we win together.=94=0AThird Quarter Revenue and Capacity=0A= Passenger revenue for the quarter increased 17.1 percent ($471 million) ove= r the same period in 2005, to $3.2 billion, with double digit percentage gr= owth in each mainline geographic region and in regional jet operations. Ad= ditional capacity and traffic, both domestic and international, and improve= d yield produced significantly higher revenue for the company. Consolidate= d revenue per available seat mile (RASM) for the quarter increased 7.4 perc= ent year-over-year due to increased yield and record load factors in spite = of elevated security concerns. =0AContinental continued its capacity growt= h during the quarter, growing its mainline capacity 8.6 percent and its con= solidated capacity 9.1 percent compared with the same period in 2005. =0AC= onsolidated revenue passenger miles (RPMs) for the quarter increased 10.5 p= ercent year-over-year on a capacity increase of 9.1 percent, resulting in a= record consolidated load factor for the quarter of 82.2 percent, 1.1 point= s above the previous record set in the same period in 2005. Consolidated y= ield increased 6.0 percent year-over-year. =0A Mainline RPMs in the third = quarter of 2006 increased 10.0 percent over the third quarter 2005, on a ca= pacity increase of 8.6 percent. Mainline load factor was a record 82.7 per= cent, up 1.0 points year-over-year. Continental=92s mainline yield during = the quarter increased 5.5 percent over the same period in 2005.=0ADuring th= e quarter, Continental continued to achieve a domestic length-of-haul adjus= ted yield and RASM premium to the industry.=0APassenger revenue for the thi= rd quarter of 2006 and period-to-period comparisons of related =0Astatistic= s by geographic region for the company=92s mainline and regional operations= are as follows:=0A=0A=0A=0APassenger=0ARevenue=0A(in millions)Percentage I= ncrease in=0AThird Quarter 2006 vs. Third Quarter 2005=0APassenger=0ARevenu= e =0ARASM=0AASMs=0A =0ADomestic$1,389 14.1% 7.6% 6.1% =0ATrans-Atlantic= 636 16.7% 1.4% 15.1% =0ALatin America354 24.3% 10.0% 12.9% =0APacific251 13= .4% 12.2% 1.0% =0ATotal Mainline$2,630 16.0% 6.8% 8.6% =0A =0ARegio= nal$ 601 22.3% 8.6% 12.6% =0A =0AConsolidated$3,231 17.1% 7.4% 9.= 1% =0A=0A =0AOperational Accomplishments=0AContinental=92s employees contin= ued to work together to deliver a record third quarter systemwide mainline = completion factor of 99.8 percent during the quarter, operating 28 days wit= hout a single mainline cancellation. The company recorded a U.S. Departmen= t of Transportation (DOT) on-time arrival rate of 75.1 percent during the q= uarter, which was affected by bad weather, air traffic control ground delay= programs, new security rules and record load factors.=0A=93My co-workers d= id a tremendous job this quarter, and earned on-time bonuses for two out of= the three months, despite operational challenges,=94 said Jeff Smisek, Con= tinental=92s president. =93I couldn=92t be prouder of them, and I=92m deli= ghted that our financial results have permitted us to accrue over $100 mill= ion of profit sharing for my co-workers.=94=0AContinental Airlines continue= s to be recognized for superior service. For the ninth year in a row, Cont= inental outranked all of its U.S. competition in international Business Cla= ss service, according to results of a survey of Cond=E9 Nast Traveler reade= rs published in the magazine=92s October 2006 edition. Continental also pl= aced highest among its network peers for domestic premium-class service. R= ankings were determined using a variety of criteria including seat comfort/= legroom, food, cabin service, amenities/technology, airport lounge clubs an= d frequent-flier privileges.=0ADuring the quarter, Continental submitted it= s case to the DOT for authority to serve New York/Newark-Shanghai, the larg= est U.S.-China market currently without daily nonstop service. The route= proceeding is supported by over 110,000 signatures from civic parties, cor= porate travel partners, Continental employees, elected officials, the airli= ne=92s customers and other interested citizens. =0AThird Quarter Financial = Results=0AContinental=92s mainline cost per available seat mile (CASM) incr= eased 5.9 percent in the third quarter compared to the same period last yea= r, primarily due to record high fuel prices. CASM decreased 0.8 percent ho= lding fuel rate constant and excluding employee profit sharing accruals and= related payroll taxes, and special charges. =0A=93It=92s great to report = another quarter of solid performance,=94 said Jeff Misner, Continental=92s = executive vice president and chief financial officer. =93Our cost control = performance remains on target, and we=92ll keep our focus, even in this imp= roved revenue environment.=94 =0AMainline fuel costs for the quarter incre= ased $174 million over the third quarter of 2005, primarily due to a 17.8 p= ercent increase in fuel prices compared to the same period last year. =0AC= ontinental continues to enhance its fuel efficient fleet. Today the compan= y announced that it has signed an agreement to acquire winglets for 37 of i= ts 737-500 and 11 of its long-range 737-300 aircraft, with installation beg= inning in 2007. The company has already completed the installation of wing= lets on its entire fleet of 737-700s and -800s and plans to finish the inst= allation of winglets on its entire 757-200 fleet in the fourth quarter of 2= 006. When these installations are complete, Continental will operate 230 n= arrowbody aircraft outfitted with winglets. Winglets lower drag and improv= e aerodynamic efficiency, which can reduce fuel consumption by up to five p= ercent.=0A By year-end, the company expects to have improved fue= l efficiency by nearly 25 percent per available seat mile as compared to 19= 98, as a result of several factors, including fleet modernization, improved= operating procedures and implementation of fuel-saving technology like win= glets and GE90 3D Aero blades.=0ADuring the third quarter, Continental reco= rded net special charges of $1 million consisting of an $8 million settleme= nt charge related to lump-sum payments to retiring pilots and a $7 million = reduction of previous charges related to permanently grounded MD-80 aircraf= t.=0AContinental ended the third quarter with approximately $2.5 billion in= unrestricted cash and short-term investments.=0AOther Accomplishments=0ACo= ntinental contributed $79 million to its pension plans during the quarter a= nd an additional $70 million to the plans in October. The contributions br= ing its 2006 pension contributions to $246 million. Since the beginning of= 2002, Continental has contributed more than $1.1 billion to its pension pl= ans.=0AContinental has accrued a cumulative profit sharing pool of over $10= 0 million through Sept. 30, 2006. The actual amount of profit sharing that= the company will be able to distribute to employees on Feb. 14, 2007, depe= nds on the company=92s full-year financial results and may exceed or be les= s than $100 million. =0AContinental converted 12 existing orders for Boein= g 737 Next Generation aircraft into orders for 12 new Boeing 737-900ERs, ex= pected to be delivered in 2008. Continental is the first U.S. carrier to o= rder the extended-range twinjet that flies about 500 nautical miles farther= than the existing 737-900. The new aircraft will have among the lowest op= erating costs in Continental=92s fleet and will allow the carrier to serve = high demand markets more efficiently. =0AContinental amended its $350 mill= ion loan facility secured by substantially all of its Pacific operations. T= he amended loan agreement lowered the interest rate, which is expected to s= ave the =0Acompany approximately $6 million annually. =0AContinental was a= warded a $258 million, five-year mail contract with the U.S. Postal Service= , the company=92s largest cargo customer, effective September 30, 2006, ext= ending Continental=92s relationship with the U.S. Postal Service for five m= ore years. The contract includes Priority, First Class and Express mail pr= oducts within the U.S. and Puerto Rico. =0ACorporate Background=0AContinen= tal Airlines is the world=92s fifth largest airline. Continental, together= with Continental Express and Continental Connection, has more than 3,200 d= aily departures throughout the Americas, Europe and Asia, serving 151 domes= tic and 136 international destinations. More than 400 additional points are= served via SkyTeam alliance airlines. With more than 43,000 employees, Co= ntinental has hubs serving New York, Houston, Cleveland and Guam, and toget= her with Continental Express, carries approximately 61 million passengers p= er year. Continental consistently earns awards and critical acclaim for bot= h its operation and its corporate culture. For more company information, v= isit continental.com. =0AContinental Airlines will conduct a regular quarte= rly telephone briefing today to discuss these results and the company's fin= ancial and operating outlook with the financial community and news media at= 9:30 a.m. CT/10:30 a.m. ET. To listen to a live broadcast of this briefing= , go to continental.com/company.=0AThis press release contains forward-look= ing statements that are not limited to historical facts, but reflect the co= mpany'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-lookin= g statements. For examples of such risks and uncertainties, please see the = risk factors set forth in the company's 2005 10-K and its other securities = filings, including any amendments thereto, which identify important matters= such as the consequences of our significant financial losses and high leve= rage, terrorist attacks, domestic and international economic conditions, th= e significant cost of aircraft fuel, labor costs, competition, and industry= conditions, including the demand for air travel, the airline pricing envir= onment and industry capacity decisions, regulatory matters, disruptions in = its computer systems, and the seasonal nature of the airline business. The company undertakes no obligation to publicly upd= ate or revise any forward-looking statements to reflect events or circumsta= nces that may arise after the date of this press release. =0A =0A =0AView o= ur videos at: http://www.youtube.com/profile?user=3Dewrw4co=0A =0ARoger & A= manda La France