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Advisories ::
Continental Airlines Capacity Reduction Ends Service To 10 Cities

HOUSTON, Sept. 17, 2001 - Continental Airlines (NYSE: CAL) today announced preliminary details of its previously announced long-term schedule reduction, which is being taken as a direct result of the current and anticipated drop in demand for air travel. Overall Continental and Continental Express (included in all data below) are reducing capacity by 20 percent on a systemwide available seat mile basis.

"These painful steps are necessary for the long-term survival of Continental," said Chairman and CEO Gordon Bethune. "Although these schedule reductions will hurt communities and those who have come to rely on us, we have no choice."

As a result of the changes, Continental's hub activity will be modified as follows:

HubAirport Original
Daily
Departures
Revised
Daily
Departures
Daily
Flight
Reduction
Percent
Change
in Flights
Cleveland 249 215 34 (14%)
Houston 555 478 77 (14%)
Newark 377 302 75 (20%)
System 2,446 2,017 429 (18%)

The 18 percent reduction in flights results in a 20 percent reduction in available seat mile capacity.

Continental and Continental Express will stop flying the following routes, resulting in a complete discontinuation of service at the 10 cities with an asterisk:

Cleveland-Atlantic City, N.J.*
Houston-Abilene, Texas*
Houston-San Angelo, Texas*
Houston-Tyler, Texas*
Houston-Waco, Texas*
NY/Newark-Daytona Beach, Fla.*
NY/Newark-Dusseldorf, Germany*
NY/Newark-Houston/Hobby*
NY/Newark-London/Stansted*
NY/Newark-Melbourne, Fla.*

Continental also announced that it will be temporarily suspending service between Cleveland and London/Gatwick. Nonstop service from NY/Newark to Rio de Janeiro is being suspended, although service to Rio de Janeiro will continue to be offered via Sao Paulo.

The changes will take effect on various dates between now and Oct. 1. Continental will not implement service to Montego Bay and Kingston, Jamaica, which was planned to take effect at the end of this year. Most of the total capacity reduction is generated by modifying flight frequencies (for example, reducing flying from five times per day to four times per day on a particular route) on dozens of additional routes that will be specified at a later date.

Included in the planned changes is the suspension of all DC-10 flying effective Oct. 1. Also subject to temporary grounding are approximately 31 Continental standard-body aircraft and 14 Continental Express turboprops.


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