CONTINENTAL AIRLINES ANNOUNCES=0AFOURTH QUARTER AND FULL YEAR 2007 PRE-TAX = RESULTS =0A =0AWill distribute a record $158 million of profit sharing to c= o-workers=0A =0AHOUSTON, Jan. 17, 2008 =96 Continental Airlines (NYSE: CAL)= today reported 2007 pre-tax income (net income before income taxes and cum= ulative effect of change in accounting principle) of $566 million, up 53 pe= rcent over 2006 pre-tax income of $369 million. Excluding $24 million of pr= eviously announced pre-tax special items, Continental=92s pre-tax income fo= r the full year was $542 million, a 78 percent improvement over 2006 pre-ta= x income of $304 million excluding special items. =0AContinental reported = pre-tax income of $71 million for the fourth quarter 2007. Excluding previ= ously announced pre-tax special items, Continental recorded fourth quarter = 2007 pre-tax income of $24 million compared to the fourth quarter 2006 pre-= tax loss of $4 million excluding special items. =0AAs announced yesterday,= Continental will record a special non-cash tax charge in the fourth quarte= r, but has not finalized the amount given the technical nature of the issue= . As a result, today the company is presenting its pre-tax results. By mi= d-February, Continental will finalize the special non-cash tax charge, and = will report its net results in the company=92s Form 10-K. =0A=93The outstan= ding performance of our team has once again set us apart from the competiti= on,=94 said Larry Kellner, Continental=92s chairman and chief executive off= icer. =93Thanks to the hard work of my co-workers, on Feb. 14, we will dis= tribute $158 million in profit sharing, $47 million more than we distribute= d for 2006, and the largest profit sharing distribution in our company=92s = history.=94=0ARevenue and Capacity=0A Total revenue of $14.2 billion for t= he year increased 8.4 percent ($1.1 billion) over the same period in 2006. = Total revenue of $3.5 billion for the fourth quarter increased 11.6 percen= t ($366 million) over the same period in 2006. As a result of increases in= all mainline geographic regions as well as regional operations, Continenta= l reported record fourth quarter and full year passenger revenue. =0AConsol= idated revenue passenger miles (RPMs) for the fourth quarter increased 4.1 = percent year-over-year on a capacity increase of 4.7 percent, resulting in = a fourth quarter consolidated load factor of 79.4 percent, 0.4 points lower= than the fourth quarter record set in 2006. Consolidated yield for the fo= urth quarter increased 7.1 percent year-over-year. Consolidated revenue pe= r available seat mile (RASM) for the fourth quarter increased 6.7 percent y= ear-over-year due to increased yields.=0A Mainline RPMs in the fourth quart= er of 2007 increased 5.4 percent over the fourth quarter 2006, on a capacit= y increase of 6.1 percent. Mainline load factor was 79.7 percent, down 0.5= points year-over-year. Continental=92s mainline yield increased 7.6 perce= nt over the same period in 2006. As a result, fourth quarter 2007 mainline= RASM was up 6.9 percent over the fourth quarter of 2006.=0APassenger reven= ue for the fourth quarter of 2007 and period-to-period comparisons of relat= ed statistics by geographic region for the company=92s mainline operations = and regional operations are as follows:=0A=0A=0A=0APassenger=0ARevenue=0A(i= n millions)Percentage Increase (Decrease) in=0AFourth Quarter 2007 vs. Four= th Quarter 2006=0APassenger=0ARevenue =0ARASM=0AASMs=0A =0ADomestic$1,4= 28 9.4 % 6.0 % 3.2 % =0ATrans-Atlantic624 27.5 % 10.9 % 15.0 % =0ALatin Ame= rica352 10.9 % 6.4 % 4.2 % =0APacific237 9.7 % 6.1 % 3.4 % =0ATotal Mainlin= e$2,641 13.4 % 6.9 % 6.1 % =0A =0ARegional$ 552 3.5 % 9.8 % (5.7)= % =0A =0AConsolidated$3,193 11.6 % 6.7 % 4.7 % =0A=0A =0AFourth Qua= rter Operational Accomplishments=0AContinental employees earned $6 million = in cash incentives for twice finishing in the top three of the network carr= iers for monthly on-time performance during the quarter in which it recorde= d a U.S. Department of Transportation (DOT) on-time arrival rate of 74.9 pe= rcent and a systemwide mainline segment completion factor of 99.2 percent.= =0A=93Our passenger revenue performance for the fourth quarter and full yea= r was superb,=94 said Jeff Smisek, Continental=92s president. =93We continu= ed to grow our passenger revenue at a pace significantly greater than our c= apacity growth, which is a testament to our excellent pricing and revenue m= anagement, operational and marketing performance.=94=0AContinental announce= d that it will launch twice-daily nonstop service to London/Heathrow from b= oth its New York and Houston hubs beginning March 29, 2008. The airline wi= ll continue to offer nonstop flights to London/Gatwick from both New York (= twice daily) and Houston (daily), as well as Cleveland (daily, seasonal).= =0AContinental launched a carbon offsetting program, developed in partnersh= ip with non-profit Sustainable Travel International, which allows customers= to view the carbon footprint of their booked itinerary and choose among a = number of options to reduce the impact of carbon dioxide emissions of their= flights. =0AContinental teamed with the Transportation Security Administr= ation to be the first U.S. carrier to launch a Paperless Boarding Pass pilo= t program that allows passengers to receive boarding passes electronically = on their cell phones or PDAs, and use those devices to pass through securit= y and board the aircraft. The new technology heightens the ability to detec= t fraudulent boarding passes while improving customer service and reducing = paper use. =0AContinental introduced new first-class menus on flights thro= ughout the United States, Canada and to select Latin American and Caribbean= destinations. The new meals were created by Continental=92s Congress of Ch= efs based on extensive feedback from customers and employees.=0AFor the 10t= h consecutive year, Continental outranked all of its U.S. competition in in= ternational business class and domestic first class service, according to r= esults of a survey of Cond=E9 Nast Traveler readers published in the magazi= ne=92s October 2007 edition. Continental was also chosen as the Best Airli= ne for North American Travel in Business Traveler magazine=92s 2007 Readers= =92 Choice Best in Business Travel Survey and for the second consecutive ye= ar, was one of 16 companies featured in Latin Business magazine=92s Corpora= te Diversity Honor Roll. =0AFinancial Results=0AContinental=92s mainline c= ost per available seat mile (CASM) increased 4.1 percent (down 2.9 percent = holding fuel rate constant) in the fourth quarter compared to the same peri= od last year. CASM increased 2.6 percent (0.9 percent holding fuel rate co= nstant) for full year 2007 as compared to 2006.=0ADuring the quarter, the p= rice of a barrel of West Texas Intermediate crude oil closed at a peak of $= 98.18 per barrel on Nov. 23, 2007. Earlier this month, crude oil prices re= ached a new intra-day record high of $100.09 per barrel. Continental=92s a= nnualized fuel costs increase by approximately $45 million for each $1-per-= barrel rise in the price of crude. =0A=93Great cost performance backed up = by impressive revenue growth enabled us to record a pre-tax profit in the f= ourth quarter,=94 said Jeff Misner, Continental=92s executive vice presiden= t and chief financial officer. =93The entire Continental team once again o= utperformed the competition.=94=0AContinental continues to enhance its fuel= efficiency. The carrier is about 35 percent more fuel efficient per mainl= ine revenue passenger mile than it was in 1997. With mainline RPMs up 6.5 = percent for the year, mainline fuel consumption increased only 4.8 percent.= =0ADuring the quarter, Continental installed winglets on seven of the compa= ny=92s 737-500s and one 737-900 aircraft, and now has winglets on 206 of it= s mainline aircraft. All of the company=92s 737-700s, 800s and 757-200s ha= ve winglets, as do select airplanes from Continental=92s 737-300, -500 and = -900 series fleets. Winglets increase aerodynamic efficiency and decrease = drag, reducing fuel consumption and emissions by up to five percent.=0ACont= inental hedged approximately 32 percent of its fuel requirements for the fo= urth quarter of 2007. As of Dec. 31, 2007, the company had hedged approxim= ately 20 percent of its projected fuel requirements for the first quarter o= f 2008 and five percent for the second quarter of 2008.=0A Conti= nental ended the fourth quarter with approximately $2.8 billion in unrestri= cted cash and short-term investments. =0AEmployee Profit Sharing and Perfo= rmance Incentives=0AContinental employees earned $191 million in cash incen= tives in 2007, consisting of $158 million of profit sharing and $33 million= in incentive payments for finishing 10 out of 12 months among the top thre= e of the network carriers for monthly on time performance.=0AContinental ha= s the best profit-sharing plan in the industry. The plan shares 30 percent= of the first $250 million of pre-tax income, 25 percent of the next $250 m= illion and 20 percent of amounts over $500 million. =0AThe on-time arrival= incentive program pays monthly cash payments when the airline hits targets= for on-time arrivals as reported by DOT. Eligible employees receive $100 = when Continental comes in first among the six network carriers in on-time p= erformance. Employees receive $65 when the company finishes second or thi= rd among the six network carriers or when Continental=92s on-time percentag= e is 80 or better, even if the company does not finish in the top three. E= ach employee received $755 in 2007.=0A2007 Accomplishments=0AContinental=92= s superior customer service and excellent employee relations continued to d= istinguish the airline from its competitors in 2007. =0AEmployees benefite= d from stock options issued in connection with pay and benefit cost reducti= ons. At yesterday=92s closing, the realized and unrealized gains from thes= e options was over $125 million. =0A=B7 Continental contributed $336= million to its pension plans in 2007, significantly exceeding its minimum = funding requirement of $187 million during the calendar year. The company = contributed an additional $60 million to its pension plans earlier this mon= th. Since the beginning of 2002, Continental has contributed over $1.5 bil= lion to its pension plans. =0A=B7 Continental was rated the top airl= ine on FORTUNE magazine=92s World=92s Most Admired Global Companies list an= d was named the most admired airline on the magazine=92s annual America=92s= Most Admired Companies airline industry list. Continental was also named = by FORTUNE magazine as one of the top ten =93Green Giants,=94 global compan= ies whose environmental policies go beyond what is required.=0AContinental = won OAG=92s =93Best Airline Based in North America=94 and =93Best Executive= /Business Class=94 at the OAG Airline of the Year Awards 2007. =0AContinuin= g its international expansion, Continental began nonstop service between Ne= w York Liberty and Athens, Greece; and Mumbai, India; and between Houston a= nd Loreto, Mexico, the airline=92s 31st Mexican destination. The company a= lso announced plans to inaugurate service between New York and Shanghai wit= h through-flight service between Cleveland and Shanghai beginning March 200= 9. Continental has the highest percentage of mainline capacity dedicated t= o international flying of any major U.S. airline. =0AContinental delivered = solid operational performance in 2007 despite operating a large number of f= lights in the New York airspace which is the most delayed and congested air= space in the nation. With passenger traffic at record levels, the company = recorded a DOT on-time arrival rate of 74.3 percent and a systemwide mainli= ne segment completion factor of 99.2 percent for the year, operating 79 day= s without a single mainline flight cancellation. =0AContinental had sales o= f nearly $3.5 billion on continental.com in 2007, up 19 percent over 2006. = =0ADuring the year, Continental continued to invest in its modern, fuel eff= icient fleet. The company has the best fleet order among U.S. network carr= iers, which includes firm orders for 25 Boeing 787s and over 60 Boeing 737s= . In addition, Continental has options for another 93 Boeing aircraft. Ea= rlier this month, Continental took its first delivery of the new 737-900ER = aircraft which will have one of the lowest operating costs in Continental= =92s fleet and will allow the carrier to serve high demand markets more eff= iciently. =0A=B7 Continental took delivery of its 19th and 20th Boei= ng 777 aircraft in the first and second quarters of 2007, respectively.=0A= =B7 The company raised approximately $1.15 billion of capital durin= g the year through the sale of Pass Through Certificates in April, issued i= n three different series with an average interest rate of 6.27%, to be used= to finance the company=92s purchase of 18 737-900ER and 12 737-800 Boeing = aircraft scheduled for delivery beginning in January 2008. Continental has= committed financing for all of its new aircraft deliveries through the end= of 2008.=0A=B7 Continental finalized two major supplier cost reduct= ion initiatives that, along with several other smaller initiatives, are exp= ected to save the company over $100 million annually on a run-rate basis wh= en fully implemented.=0A=B7 Over 4,000 employees, family members and= friends participated in March of Dimes WalkAmerica as part of the Continen= tal team. Continental is a national sponsor of the March of Dimes March for= Babies (formerly WalkAmerica) and the official airline of the March of Dim= es National Ambassador Program. =0A=B7 The Continental Scholarship F= und provided scholarship awards to 183 co-workers and dependents to help wi= th tuition and fees. Since 2001, the Scholarship Fund has helped 944 emplo= yees or their dependents. Scholarship funds are donated by employees throu= gh payroll deduction and raised by The Continental Management Association.= =0AContinental=92s WE CARE Employee Fund donated over $1 million to assist = 464 employees with necessities during unexpected emergencies. =0ACorporate = Background=0AContinental Airlines is the world=92s fifth largest airline. = Continental, together with Continental Express and Continental Connection, = has more than 2,900 daily departures throughout the Americas, Europe and As= ia, serving 144 domestic and 139 international destinations. More than 500 = additional points are served via SkyTeam alliance airlines. With more than= 45,000 employees, Continental has hubs serving New York, Houston, Clevelan= d and Guam, and together with Continental Express, carries approximately 69= million passengers per year. Continental consistently earns awards and cri= tical acclaim for both its operation and its corporate culture. For more c= ompany information, visit continental.com. =0AContinental Airlines will con= duct a regular quarterly telephone briefing today to discuss these results = and the company's financial and operating outlook with the financial commun= ity and news media at 9:30 a.m. CT/10:30 a.m. ET. To listen to a live broad= cast of this briefing, go to continental.com/About Continental /Investor Re= lations.=0AThis press release contains forward-looking statements that are = not limited to historical facts, but reflect the company=92s current belief= s, 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 exam= ples of such risks and uncertainties, please see the risk factors set forth= in the company=92s 2006 10-K and its other securities filings, including a= ny amendments thereto, which identify important matters such as the consequ= ences of the company=92s significant financial losses and high leverage, th= e significant cost of aircraft fuel, its high labor and pension costs, serv= ice interruptions at one of its hub airports, disruptions in its computer s= ystems, and industry conditions, including the airline pricing environment,= industry capacity decisions, industry consolidation, terrorist attacks, regulatory matters, excessive taxation, the availability and cost of insur= ance, public health threats and the seasonal nature of the airline business= . The company undertakes no obligation to publicly update or revise any for= ward-looking statements to reflect events or circumstances that may arise a= fter the date of this press release, except as required by applicable law. = =0A-tables attached- <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> If you wish to unsubscribe from the AIRLINE List, please send an E-mail to: "listserv@xxxxxxxxxxxxxxxxx". Within the body of the text, only write the following:"SIGNOFF AIRLINE".