Airlines Information

LONDON (AFP) – British Airways (BA) cabin crew launched a four-day strike Saturday, the second wave of action in a week as part of a bitter, long-running dispute over pay and conditions.
BA has pledged that more than three-quarters of its passengers -- or over 180,000 out of 240,000 -- will still be able to travel as planned during the walkout, which follows a similar three-day action last week.
Another 18 percent of its customers have been rebooked with other airlines, or have switched their travel dates to avoid the strike period, it said.
BA chief executive Willie Walsh said the "vast majority" of its staff were "pulling together to serve our customers and keep our flag flying".
"At the same time, I feel really sorry for those customers whose plans have been ruined by the Unite union's completely unjustified action," he added.
Amid growing hostility between BA and trade union Unite, whose members are staging seven days in total of strikes, the union claimed the cost to BA would be 100 million pounds (111 million euros, 149 million dollars).
"If you add together the cost of lost bookings, of revenue effectively transferred to other airlines along with BA passengers, the cost of (leased) aircraft and the cost of knock-on post-strike disruption, this is the ball-park area we are in," the union said in a statement.
By contrast, BA said Monday that a three-day walkout from last Saturday would cost seven million pounds a day and that an assessment of the full cost of the seven-day action could only be made after it was finished.
Talks between the two sides broke down eight days ago, on the eve of the first wave of strikes.
Walsh came under fire from leading academics in a letter to The Guardian newspaper published Friday.
The letter, signed by 116 industrial relations experts from universities across Britain, argued that Walsh's actions were designed to break Unite, which represents BA's 12,000 cabin crew.
They added that Walsh had withdrawn an offer which could have prevented Unite's strikes -- and used airplanes from fierce rival Ryanair to combat last weekend's strike.
BA has also axed highly-prized perks like big travel discounts for all striking workers.
"It is clear to us that the actions of the chief executive of British Airways... are explicable only by the desire to break the union which represents the cabin crew," the academics' letter read.
"What other possible interpretation can there be for Willie Walsh tabling an inferior offer to BA's previous one, or indeed his marshalling of resources, including those of bitter rival Ryanair, to undermine the action of his staff?"
BA issued a curt response to deny that it was seeking to break Unite.
"We reject the suggestion that BA's real objective is to break Unite," the carrier said in comments emailed to journalists.
BA is hoping to fly a full and normal schedule from London's City and Gatwick airports over the next four days.
At London Heathrow, one of the world's busiest airports, the carrier said it would operate 70 percent of long-haul and 55 percent of its short-haul flights.
The airline, which is attempting to merge with Spanish rival Iberia, said last month it expected to notch up a record loss in the current financial year due to weak demand for air travel.
In December, BA won a legal battle to prevent a 12-day walkout by cabin crew over Christmas and New Year after a judge ruled that a ballot of staff by Unite was invalid.
Prime Minister Gordon Brown has condemned the strike.
But with a general election expected to take place in May, the main opposition Conservatives have accused the government of a weak response to the strike because Unite is a major donor to Brown's ruling Labour party.

LONDON – A three-day strike by British Airways cabin crew affecting thousands of travelers began Saturday after last-ditch talks between the airline's management and union leaders collapsed.
The walkout has forced BA to cancel thousands of flights, but it still hopes to operate around 65 percent of its international schedule over the period.
The Unite union has gathered some support from unions in the United States, Germany and Spain for its action — taken to protest a pay freeze and changes to working conditions — but the other unions have so far stopped short of pledging direct action that would affect BA's ability to refuel and service its planes.
A total of 1,100 flights out of the 1,950 flights scheduled to operate during the walkout will be canceled, but the airline has leased planes and crew from rival carriers to take up some of the shortfall.
At its Heathrow base, more than 60 percent of long-haul flights will operate, but only 30 percent of short-haul. At Gatwick, all long-haul flights and more than half the short-haul flights will run as normal.
"Tens of thousands of BA people stand ready to serve our customers," said BA Chief Executive Willie Walsh. "BA will be flying tomorrow."
Adam Huberman of Issta, a flight and tour agency specializing in trips to Israel, said he was taking 60 to 80 calls a day from passengers planning to travel to Israel before Passover, which starts March 30.
He said the strike couldn't have come at a worse time.
"It is the busiest time of the year," he said, adding that the agency had put on some flights of its own. "Some will be able to go but fares are obviously higher because it's so last minute."
Among others whose plans were affected were the Cardiff County and Vale of Glamorgan Youth Band from Wales, who are scheduled to play in a wind band festival at Carnegie Hall in New York on Tuesday.
Their scheduled Saturday flight was one of the ones BA has canceled, but after television and radio appeals — and a letter to rival virgin Atlantic — BA managed to get them onto alternative planes.
Picket lines will be mounted over the weekend at several entrances to Heathrow, but Walsh said he had "no concern whatsoever" about the threat of solidarity actions in other countries.
The U.S. International Brotherhood of Teamsters urged travelers to find alternatives during the strike.
"We are keenly aware of British Airways' operations in the United States and the cities served by the airline," the Teamsters, who represent 40,000 workers in the aviation industry, said in a statement. "We continue to look at this situation as it evolves and are keeping our options open."
Walsh said it was "deeply regrettable" that the union declined to accept a proposal on pay and working conditions from the airline, adding that offer would be withdrawn once the strike begins.
Unite joint general secretary Tony Woodley said that BA "does not want to negotiate and ultimately wants to go to war with this union."
The prospect of travel chaos in Britain in the run-up to the Easter break also intensified with news that railway signal workers voted in favor of a strike, joining rail maintenance workers. The Rail Maritime and Transport union has not called dates for a walkout of both groups of workers but has refused to rule out the Easter long weekend.
The prospective industrial unrest is an unwelcome turn of events for the ruling Labour Party on the eve of a national election.
Prime Minister Gordon Brown called for the strike to be called off immediately.
"The Prime Minister believes that this strike is in no one's interest and will cause unacceptable inconvenience to passengers," his office said in a statement.
"As the country struggles out of the recession, the last thing we need is the unions holding the country to ransom," said Theresa Villiers, the opposition Conservative Party's transport spokeswoman.
BA argues that the disputed changes — including a pay freeze in 2010, a switch to part-time work for 3,000 staff and a reduction in cabin crew sizes from 15 to 14 on long-haul flights from Heathrow airport — are critical for its survival. Unite argues it was not properly consulted on the changes.
BA said Friday it had offered to modify the changes, even though they had been approved by Britain's High Court, but Unite had declined to put the offer to its members to vote.
Analysts estimate that BA has already lost more than 25 million pounds because of canceled tickets and the cost of contingency plans, which include leasing fully crewed planes from other airlines.
Unite has a second, four-day walkout planned to begin March 27 and has said more strikes will be scheduled for after April 14 if the dispute is not resolved. It has pledged not to walk out over the busy Easter period.

HONG KONG - Cathay Pacific Airways Ltd. returned to profit in 2009 as cost-cutting measures and bets on fuel prices helped Asia's No. 3 carrier rebound from its biggest loss ever the year before.

Hong Kong's flagship airline reported profit of $4.7 billion Hong Kong dollars ($601 million) in the 12 months ended Dec. 31, the company said in a statement Wednesday.

That compared to a record loss of HK$8.6 billion ($1.1 billion) in 2008 amid plummeting demand for travel and volatile fuel prices that soured the company's hedging contracts.

For all of 2009, revenue declined by nearly 23 per cent to around $HK70 billion (close to $9 billion).

Cathay said there was a pickup in passenger and cargo traffic as the recession abated but demand had yet to bounce back to levels seen before the slump.

Also helping the airline were measures it took to drastically reduce costs and the sale of part of its stake in Hong Kong Aircraft Engineering for $243 million.

Higher fuel prices, meanwhile, helped the company recoup on its hedging bets. Cathay reported a gains of nearly $258 million last year on its hedging contracts.

"While we welcomed the improvement in business in the latter part of 2009, we remain cautious about the prospects for 2010," Cathay's chairman Christopher Pratt said in a statement

Passenger traffic at Cathay and its subsidiary Dragonair was down by 1.6 per cent. Meanwhile, the company brought in about 30 per cent less revenue from cargo traffic, with the amount of freight carried by Cathay and Dragon slipping around 7 per cent.

Cathay shares were up 1.9 per cent in afternoon trade.

GENEVA (AP) — Global airlines are undergoing a surprisingly strong recovery with Asian and Latin American carriers leading the way, the leading industry group said Thursday as it halved its loss forecast for 2010 to $2.8 billion.

The International Air Transport Association said carriers began bouncing back late last year, and have continued to see stronger demand after posting record losses during the global economic crisis. The group also lowered its 2009 loss estimate to $9.4 billion from $11 billion because of the year-end rally.

"We are starting to see some blue skies ahead of us," said IATA chief executive Giovanni Bisignani.




The group, which represents 240 airline companies worldwide, had predicted in December that 2010 losses would total $5.6 billion because of the "extraordinarily low" yields airlines are generating — the average price someone pays to fly one mile.

Yields are now expected to improve 2 percent for passenger planes, and 3.1 percent for cargo traffic this year, despite a glut of planes on the market and lower corporate travel budgets. Both key statistics dived 14 percent in 2009.

Passenger demand should grow 5.6 percent for the year, while cargo demand could jump 12 percent, IATA added. It said strong growth in Asia and Latin America was offsetting lagging demand in Europe and the United States.

"We are seeing a definite two-speed industry," Bisignani told reporters. He noted that American and European travelers may take a longer time to return to higher-priced business class seats for short-haul flights, and said markets in their regions continued to contract.

European carriers are expected to post a $2.2 billion loss, the largest in the world, while North American airlines could lose $1.8 billion because of a jobless recovery and poor consumer confidence, the group said. By contrast, Asian-Pacific companies could make $2.7 billion and Latin American carriers another $800 million.

Bisignani said 2010 represents the halfway point in a recovery effort that could take three years — even if that still doesn't mean profits. Airlines should generate $44 billion in revenues more than last year, but that is still be $43 billion below the industry's 2008 peak, he said.

IATA warned, however, that higher fuel costs would hamper any industrywide rebound. It is now gauging an average oil price of $79 a barrel for the year, meaning $132 billion in costs for carriers. That's over a quarter of all operating costs.

"Oil is a wild card," Bisignani conceded.

Speaking on industry developments, he noted over 30 airlines were knocked out of business since the crisis began and that carriers have lost nearly $50 billion in the last decade. They now hold over $200 billion in debts.

"This is not the time for increases in salaries or prices for services," Bisignani said, without mentioning specifically Lufthansa's strike last month or similar action threatened at British Airways.

"It's certainly not the time for strikes," he said. "All the partners need to work together to get out of these red numbers."

Creditors of South Korea's cash-strapped Kumho Asiana group are considering a capital write-down of Asiana Airlines in return for a fresh fund injection, the group's top lender said, sending Asiana shares down 15 percent.

State-run Korea Development Bank is restructuring key units including Asiana Airlines, the country's second-biggest carrier, after the conglomerate's aggressive acquisitions prompted temporary cash shortages late last year.

"We have asked major shareholders (of Asiana) to take some responsibility, including capital write-downs, in return for a new capital injection," a KDB spokesman said on Friday.

"Nothing has been decided regarding which shareholders should sacrifice how much. The capital write-down may not take place at all, if we find Asiana Airlines financially sound enough," he said.

Creditors, which have agreed to provide KRW120 billion won (USD$106 million) in financial support to the airline, plan to complete their due diligence on the company by the end of March.

The group is burdened by the cost of its 2006 acquisition of Daewoo Engineering & Construction, having agreed to buy back Daewoo shares held by financial investors at a price far above current levels. It also bought logistics firm Korea Express in 2008.

Shares in Asiana Airlines dropped 14.7 percent to a three-week low before closing down 12.5 percent at 3,700 won, versus the broader market's 0.4 percent gain

Air France's insurance company said on Friday it will appeal a Brazilian court's ruling for the airline to pay USD$1.16 million in compensation to the family of a victim of a fatal crash last year.

French insurance company Axa said in a statement it did not accept Thursday's ruling as a precedent because compensation should be decided by a committee set up after the crash by Brazil's government, associations of victims' families and insurers. That committee agreed to define the criteria for fair compensation for the families.

Air France flight AF447 between Rio de Janeiro and Paris crashed into the Atlantic Ocean during a storm on June 1, 2009, killing all 228 people on board.

A Rio civil court judge ordered Air France on Thursday to pay BRR2.04 million reais (USD$1.16 million) as compensation for the death of Marcelle Valpacos Fonseca Lima, a 41-year-old woman who was the Rio state attorney-general.

Judge Mauro Nicolau Junior said in his ruling that the crash, the cause of which is still unclear, was in large part due to the "negligent conduct of the accused."

An Air France spokeswoman declined to comment while the airline studies the ruling.

The company said after the crash that it would compensate families of the victims through its insurers, with payments of around EUR€100,000 euros (USD$137,000) per victim as a compassionate gesture rather than an admission of liability.

Passengers from 32 nationalities were killed in the crash of the Airbus A330. Among them were 61 French and 58 Brazilians.

An international search to locate the wreckage failed to find the black box recorders that are crucial to pinpointing the cause of crash. It is due to resume this month.

Critics say it does not reflect better service but rather the frustration of passengers so fed up they're not filing complaints. Congress is pushed to adopt a passenger bill of rights.
TRAVEL BRIEFCASE
November 21, 2009|By Hugo Martín

After hearing Jim Engle of Sierra Madre talk about the headaches he and his wife endured on a round trip from Burbank to Detroit on American Airlines in the summer, you might be surprised to hear that the country's airlines continue to get great marks in customer service.

Engle and his wife suffered through several delays, an unscheduled stop in Ontario and airline staff who, he said, were curt and unhelpful.
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"And I don't have enough time to tell you about the extra charges for baggage and food and water, which ran out before half the plane was served," he complained.

Despite the experience of Engle and other passengers, the latest report from the U.S. Department of Transportation shows that complaints against airlines dropped nearly 12% in September compared with the same period last year and 32% from August 2009.

Even when the overall drop in passenger traffic is factored in, the complaint rate against the airlines is down to 0.88 complaints per 100,000 passenger flights this September from 0.99 complaints in September 2008.

Engle and other airline critics believe the reason for the drop in complaints does not reflect improved airline services but rather a growing frustration by passengers who are so fed up that they don't file complaints.

After all, Engle didn't file a complaint with American or the Department of Transportation.

"They're miserable and they are resigned that nothing is going to change," said Kate Hanni, founder of FlyersRights.org, a website that has been pushing Congress to adopt a passengers' bill of rights.

Hanni, who has become a vocal airline critic since she and her family were stuck on a plane for nine hours on a tarmac in Austin, Texas, in 2006, said her organization's complaint hotline -- (877) 359-3776 -- continues to get a steady stream of angry calls from frustrated airline passengers.

The complaints reported to the Department of Transportation come directly from airline passengers who either call the complaint line -- (202) 366-2220 -- write to the agency or file a complaint online at airconsumer.ost.dot.gov.

Airlines are required to report mishandled baggage, delayed flights, incidents involving pets, tarmac delays and other specific problems.

But they are not required to report general grievances about service, such as dirty seats, rude staff and excessive fees.

Hanni and other critics say it simply may appear that the airlines are doing a better job because of the deep drop in passenger traffic.
The Department of Transportation also reported improved on-time performances for the nation's largest airlines in September, when the on-time rate was 86.2%, compared with 84.9% in September 2008 and 79.7% in August 2009.

Airline experts say carriers have an easier time keeping flights on schedule because many have eliminated flights and grounded planes because of dropping demand. More-cooperative weather patterns this year also have kept airlines on schedule.U.S. airlines also lost or mishandled less luggage: 3.01 bags per 1,000 passengers in September, compared with a rate of 3.86 in September 2008 and a rate of 4.04 in August 2009, according to the department report.

American Airlines spokesman Tim Smith acknowledged that improved weather and declining passenger traffic have helped airlines reduce flight delays, lost-luggage reports and other problems. But he attributed the overall drop in complaints at American to improved service.

He said American's internal data show that the number of passenger complaints has dropped 20% to 30% over last year. He points to a new airline effort to deploy customer service workers throughout the terminals to help passengers solve glitches with luggage and flight schedules.

As for Engle's nightmare trip to Detroit, Smith said the airline gets more complaints than compliments because people with a gripe are more vocal.

Still, he said, American continues to strive to resolve every complaint.

"We are not satisfied if the customers are not satisfied," he said.

The key component of the passengers' bill of rights supported by Hanni and other airline critics is a guideline for returning passengers to the terminal when a plane is delayed on the tarmac for more than three hours.

Tarmac delays are a major headache, but lately air travelers seem increasingly angry about the fees that airlines charge to check luggage and get a snack, a pillow or a drink.

Now an airline consulting firm has proposed another "passenger bill of rights" to protect travelers from hidden, excessive and unfair airline fees.

Airline Information, a Miami firm that organizes airline conferences and consults for the industry, has created an eight-point bill of rights for airline passengers who are the target of such a la carte fees.

Among the mandates of the bill:

* All fees must be transparent.

* Customers have a right to know the total cost of a flight, plus extra fees, before paying the fare.

* Customers have a right to a refund if they don't get the purchased a la carte services that were promised.

The bill of rights have been debated among airline representatives at conferences in Huntington Beach and London in the last three months.

Roger Williams, managing partner of Airline Information, said his company proposed the bill of rights because it was clear that such fees are a permanent part of the industry.

Unless the airlines manage the extra fees in a responsible manner, Williams said he fears that the federal government may impose regulations on such fees.

"We are trying to stay ahead of the curve," he said.

So far, no airlines have endorsed the airline fees bill of rights. But Williams said he hoped to get many airlines to agree to the guidelines by the end of the year.

hugo.martin@latimes.com

At a JPMorgan investor conference on Tuesday, Delta executives offered their first public responses to unfavorable decisions last month by both the U.S. Transportation Department and Japan Air Lines.

On Feb. 9, Japan Air Lines rejected Delta's bid to replace American as its partner. On Feb. 10, the U.S. Transportation Department restrained Delta's bid to expand at LaGuardia Airport by acquiring more La Guardia slots from US Airways(LCC) in exchange for slots at Washington National and other assets.

In the regulatory case, the DOT said it would not approve the deal unless Delta and US Airways sold some of the slots to other carriers. On Tuesday, Delta President Ed Bastian said, "We are still helpful we can get the deal closed and we are working to that end." Previously, both airlines had said they were studying the issue.

Bastian said the DOT imposed restrictions "that neither (we) nor US Airways likes. We're looking at our options. We still have a strong interest in going forward and (we) continue to talk to US Airways ... we're hoping to get that transaction done."

In New York, Bastian added, Delta has "been doing a pretty good job of getting everyone's attention." He said the carrier continues to work on plans for a new terminal at Kennedy Airport. "We cannot maintain a revenue premium in this market if we're going to have a substandard facility," he said.

Arch-rival American(AMR) opened a $1.3 billion Kennedy terminal in 2007. "It's as good a terminal as there is anywhere in our country," said CFO Tom Horton, in a recent interview, who noted that "the opportunities to grow our presence (in New York) are significant," following the tentative approval of trans-Atlantic immunity for American, British Airways and Iberia.

Regarding the Pacific, Bastian said, "We are undeterred. We have a strong franchise there: we continue to be strong." He said other unnamed carriers have expressed interest in joining Skyteam or forming partnerships with Delta. "We're not going to stagnate, we're not going to sit, we're not going to lose any sleep over it," he said.
Executive Vice President Glen Hauenstein said Delta is disappointed by its rejection, but nevertheless remains "optimistic and confident in the strength of the Pacific." He said the airline merged with Northwest in order to acquire its hub at Tokyo's Narita Airport, and reiterated that unnamed Asian carriers are pursuing relationships with Delta.

"There's a considerable amount of interest we piqued over six months with respect to Asia that did not exist (before)," Hauenstein said, adding that Delta could add some "direct overflies" or nonstop flights from the U.S. to Asian cities without requiring a connection at Narita.

-- Written by Ted Reed in Charlotte, N.C. .

NEW YORK (MarketWatch) -- Airline stocks got a boost Friday as the U.S. unemployment rate held steady at 9.7% in February with smaller monthly losses in nonfarm payrolls.

Investors continued to assess airlines' traffic results for the month, with results showing a slower loss in demand for air travel as well as some growth on the international side. Several carriers also detailed the impact from the month's severe snowstorms on their revenues.
/quotes/comstock/10t!xal.x XAL 36.60, +0.11, +0.30%

The NYSE Arca Airline Index /quotes/comstock/10t!xal.x (XAL 36.60, +0.11, +0.30%) rose nearly 1% to 36.78 points with all but two of its 13 components trading higher. In the last 52 weeks, the sector benchmark has moved in a range of 37.72 to 12.62 points.

Shares of American Airlines parent AMR Corp. /quotes/comstock/13*!amr/quotes/nls/amr (AMR 9.29, +0.11, +1.20%) added 1% to $9.27, while US Airways /quotes/comstock/13*!lcc/quotes/nls/lcc (LCC 7.43, +0.11, +1.50%) rose 1.4% to $7.42 and Continental Airlines /quotes/comstock/13*!cal/quotes/nls/cal (CAL 20.64, +0.14, +0.68%) climbed 1.3% to $20.76.

The Dow Jones Industrial Average /quotes/comstock/10w!i:dji/delayed (INDU 10,530, +85.48, +0.82%) gained more than 0.5% as the February unemployment rate and payrolls loss came in better than expected. Economists also predicted the trend of smaller job losses would lead to net gains in employment by the second quarter. Read Economic Report.

Outside of the index, Hawaiian Airlines /quotes/comstock/15*!ha/quotes/nls/ha (HA 7.85, +0.07, +0.90%) is making a grab for two open gates at Tokyo's Haneda Airport, taking on some of the world's largest airlines in the process. Read more about Hawaiian Airlines
Snow bruises February revenue
AM Report: Dissecting the Jobs Report

The News Hub panel argues what effect, if any, last month's snow storm had on the February jobs report.

Airlines' February traffic results have been showing a gradual increase in demand as well as the impact of several blizzards in the Northeast that led to airport closings and hundred of cancellations.

Earlier Friday, Southwest Airlines /quotes/comstock/13*!luv/quotes/nls/luv (LUV 12.59, -0.01, -0.08%) said weather-related flight cancellations during the month resulted in an estimated $15 million hit on passenger revenues.

Earlier in the week, US Airways said it suffered $30 million in lost revenue as the unusual weather led to hundred of cancellations, while Continental put the impact at $25 million.
/quotes/comstock/13*!dal/quotes/nls/dal DAL 12.72, -0.07, -0.51%
/quotes/comstock/15*!uaua/quotes/nls/uaua UAUA 18.25, +0.19, +1.05%
/quotes/comstock/13*!amr/quotes/nls/amr AMR 9.29, +0.11, +1.20%

American and Delta Air Lines /quotes/comstock/13*!dal/quotes/nls/dal (DAL 12.72, -0.07, -0.51%) were also affected, but they didn't release any data. Some analysts expect the total impact from the storms could easily exceed $100 million.

But aside from the one-time hit to revenues, airlines and analysts said the demand environment continues to improve along with the economy.

In a recent note from Macquarie Research, analyst Robert Stallard noted U.S. air-traffic demand rebounded to a 1.6% increase in January from a 1.2% decrease in December, with the majority of airlines seeing unit revenue growth.

Meanwhile, the carriers took advantage of the slower winter months to reduce capacity further, cutting out 2.3% for January. That followed a 3.7% reduction in December and a 4.7% cut in November, Stallard said.

Japan Airlines plans to reduce its work force by 2,700, or about 5 percent, by offering early retirement, the Nikkei business daily reported.

JAL, which employs about 51,800 group-wide, aims to cut 1,700 employees at its core unit, Japan Airlines International, and the rest at other group firms, the paper said.

The carrier, which did not disclose how much severance pay early retirees are to receive, will start with 400 flight crew and ground staff managers, the Nikkei said.

According to the paper, retirements will take effect on April 30 and JAL is expected to book the associated costs as an extraordinary loss for next fiscal year.

Earlier in January, JAL applied for protection from creditors with more than USD$25 billion in debts, making it Japan's biggest-ever bankruptcy by a non-financial firm, and vowed to cut 30 percent of its work force and drop money-losing routes.

Selling off subsidiaries is supposed to eliminate at least 10,000 jobs, but that process could prove difficult, making it necessary to expand early retirement offerings, the business daily said.

(Reuters)

HOUSTON, March 1 /PRNewswire-FirstCall/ -- Continental Airlines (NYSE:CAL - News) today reported a February consolidated (mainline plus regional) load factor of 77.7 percent, 5.2 points above the February 2009 consolidated load factor, and a mainline load factor of 78.1 percent, 5.2 points above the February 2009 mainline load factor. Both February load factors were records for the month. The carrier reported a domestic mainline February load factor of 80.6 percent, 2.9 points above the February 2009 domestic mainline load factor, and a record international mainline load factor of 75.9 percent, 7.5 points above February 2009.

During February, Continental recorded a U.S. Department of Transportation (DOT) on-time arrival rate of 75.0 percent and a mainline segment completion factor of 95.4 percent. Continental's operational results were adversely impacted by severe winter weather, particularly at its New York hub at Newark Liberty International Airport.

In February 2010, Continental flew 6.1 billion consolidated revenue passenger miles (RPMs) and 7.8 billion consolidated available seat miles (ASMs), resulting in a consolidated traffic increase of 3.3 percent and a capacity decrease of 3.8 percent as compared to February 2009. In February 2010, Continental flew 5.4 billion mainline RPMs and 6.9 billion mainline ASMs, resulting in a mainline traffic increase of 3.2 percent and a mainline capacity decrease of 3.7 percent as compared to February 2009. Domestic mainline traffic was 2.7 billion RPMs in February 2010, down 0.5 percent from February 2009, and domestic mainline capacity was 3.3 billion ASMs, down 4.1 percent from February 2009.

For February 2010, consolidated passenger revenue per available seat mile (RASM) is estimated to have increased between 7.5 and 8.5 percent compared to February 2009, while mainline RASM is estimated to have increased between 5.5 and 6.5 percent.

Continental estimates that the suspension of operations at its New York hub on February 10, 2010, and February 26, 2010, due to severe winter weather in the New York area reduced its consolidated passenger revenue for the month by approximately $25 million. The combination of available seat mile reductions caused by the two February snowstorms and the company's re-accommodation of many customers who were impacted by its flight cancellations resulted in a year-over-year RASM benefit of approximately one percentage point, compared to the year-over-year RASM performance the company would have expected had the company flown the capacity it cancelled as a result of the storms.

For January 2010, consolidated passenger RASM decreased 1.3 percent compared to January 2009, while mainline passenger RASM decreased 2.8 percent compared to January 2009.

Continental's regional operations had a February load factor of 74.6 percent, 5.3 points above the February 2009 regional load factor. Regional RPMs were 657.0 million and regional ASMs were 880.2 million in February 2010, resulting in a traffic increase of 3.5 percent and a capacity decrease of 4.0 percent versus February 2009.

Continental Airlines is the world's fifth largest airline. Continental, together with Continental Express and Continental Connection, has more than 2,500 daily departures throughout the Americas, Europe and Asia, serving 133 domestic and 135 international destinations. Continental is a member of Star Alliance, which overall offers 19,700 daily flights to 1,077 airports in 175 countries through its 26 member airlines. With more than 41,000 employees, Continental has hubs serving New York, Houston, Cleveland and Guam, and together with its regional partners, carries approximately 63 million passengers per year.

Continental consistently earns awards and critical acclaim for both its operation and its corporate culture. For the sixth consecutive year, FORTUNE magazine named Continental the No. 1 World's Most Admired Airline on its 2009 list of World's Most Admired Companies. For more company information, go to continental.com.

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 2009 Form 10-K and its other securities filings, including any amendments thereto, which identify important matters such as the potential for significant volatility in the cost of aircraft fuel, the consequences of its high leverage and other significant capital commitments, its high labor and pension costs, delays in scheduled aircraft deliveries, service interruptions at one of its hub airports, disruptions to the operations of its regional operators, disruptions in its computer systems, and industry conditions, including continuing weakness in the U.S. and global economies, the airline pricing environment, terrorist attacks, regulatory matters, excessive taxation, industry consolidation and airline alliances, the availability and cost of insurance, public health threats and the seasonal nature of the airline business. The company undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this press release, except as required by applicable law.



PRELIMINARY TRAFFIC RESULTS
FEBRUARY 2010 2009 Change

REVENUE PASSENGER
MILES (000)
Domestic 2,659,180 2,673,822 -0.5 Percent

International 2,752,470 2,568,348 7.2 Percent
Transatlantic 1,215,540 1,158,555 4.9 Percent
Latin America 989,790 931,769 6.2 Percent
Pacific 547,140 478,024 14.5 Percent

Mainline 5,411,650 5,242,170 3.2 Percent
Regional 657,000 635,057 3.5 Percent
Consolidated 6,068,650 5,877,227 3.3 Percent

AVAILABLE SEAT
MILES (000)
Domestic 3,300,279 3,439,946 -4.1 Percent

International 3,625,653 3,754,257 -3.4 Percent
Transatlantic 1,672,655 1,855,310 -9.8 Percent
Latin America 1,244,275 1,216,195 2.3 Percent
Pacific 708,723 682,752 3.8 Percent

Mainline 6,925,932 7,194,203 -3.7 Percent
Regional 880,233 917,000 -4.0 Percent
Consolidated 7,806,165 8,111,203 -3.8 Percent

PASSENGER LOAD FACTOR
Domestic 80.6 Percent 77.7 Percent 2.9 Points

International 75.9 Percent 68.4 Percent 7.5 Points
Transatlantic 72.7 Percent 62.4 Percent 10.3 Points
Latin America 79.5 Percent 76.6 Percent 2.9 Points
Pacific 77.2 Percent 70.0 Percent 7.2 Points

Mainline 78.1 Percent 72.9 Percent 5.2 Points
Regional 74.6 Percent 69.3 Percent 5.3 Points
Consolidated 77.7 Percent 72.5 Percent 5.2 Points

ONBOARD PASSENGERS
Mainline 3,138,019 3,182,980 -1.4 Percent
Regional 1,195,138 1,163,130 2.8 Percent
Consolidated 4,333,157 4,346,110 -0.3 Percent

CARGO REVENUE TON
MILES (000)
Total 78,335 63,763 22.9 Percent



PRELIMINARY TRAFFIC RESULTS
YEAR-TO-DATE 2010 2009 Change
REVENUE PASSENGER
MILES (000)
Domestic 5,571,841 5,519,051 1.0 Percent

International 6,118,289 5,502,733 11.2 Percent
Transatlantic 2,705,390 2,474,820 9.3 Percent
Latin America 2,157,252 1,991,986 8.3 Percent
Pacific 1,255,647 1,035,927 21.2 Percent

Mainline 11,690,130 11,021,784 6.1 Percent
Regional 1,353,803 1,283,853 5.4 Percent
Consolidated 13,043,933 12,305,637 6.0 Percent

AVAILABLE SEAT
MILES (000)
Domestic 7,024,535 7,155,672 -1.8 Percent

International 7,952,871 7,848,764 1.3 Percent
Transatlantic 3,619,871 3,888,795 -6.9 Percent
Latin America 2,693,658 2,543,282 5.9 Percent
Pacific 1,639,342 1,416,687 15.7 Percent

Mainline 14,977,406 15,004,436 -0.2 Percent
Regional 1,865,166 1,892,959 -1.5 Percent
Consolidated 16,842,572 16,897,395 -0.3 Percent

PASSENGER LOAD FACTOR
Domestic 79.3 Percent 77.1 Percent 2.2 Points

International 76.9 Percent 70.1 Percent 6.8 Points
Transatlantic 74.7 Percent 63.6 Percent 11.1 Points
Latin America 80.1 Percent 78.3 Percent 1.8 Points
Pacific 76.6 Percent 73.1 Percent 3.5 Points

Mainline 78.1 Percent 73.5 Percent 4.6 Points
Regional 72.6 Percent 67.8 Percent 4.8 Points
Consolidated 77.4 Percent 72.8 Percent 4.6 Points

ONBOARD PASSENGERS
Mainline 6,591,174 6,567,382 0.4 Percent
Regional 2,449,089 2,342,969 4.5 Percent
Consolidated 9,040,263 8,910,351 1.5 Percent

CARGO REVENUE TON
MILES (000)
Total 162,976 126,867 28.5 Percent




PRELIMINARY OPERATIONAL AND FINANCIAL RESULTS

FEBRUARY 2010 2009 Change

On-Time Performance(1) 75.0% 77.7% (2.7) Points
Completion Factor(2) 95.4% 99.5% (4.1) Points
January 2010 year-over-year consolidated RASM change (1.3) Percent
January 2010 year-over-year mainline RASM change (2.8) Percent
February 2010 estimated year-over-year
consolidated RASM change 7.5 - 8.5 Percent
February 2010 estimated year-over-year mainline
RASM change 5.5 - 6.5 Percent
February 2010 estimated average price per gallon
of fuel, including fuel taxes 2.10 Dollars
First Quarter 2010 estimated average price per
gallon of fuel, including fuel taxes 2.13 Dollars

(1) Department of Transportation Arrivals within 14 minutes
(2) Mainline Segment Completion Percentage

This spring, American Airlines (AA) will introduce three new international routes from John F. Kennedy International Airport (JFK).

“New Yorkers are international travelers – whether for business or leisure travel – and we’re excited to add these three great destinations to our schedule,” said Jim Carter, AA Vice President, Eastern Sales Division.


The new Boeing 757 nonstop flights are to San Jose, Costa Rica; Madrid, Spain and Manchester, England.

Flights to San Jose will begin on April 6, while those to Madrid will begin on May 1. Flights to Manchester will take off on May 13.

This improved schedule brings the number of international destinations from New York to a whopping 31.

San Jose flights will depart every day from JFK except on Friday and Sunday. Known as a land of extreme beauty, Costa Rica has become famous for its wonderful ecological systems, terrific climate and friendly people.

“American Airlines has a long history in Costa Rica, and they have served our country for more than 20 years,” said Allan Flores, minister of tourism for Costa Rica. “We are pleased with the addition of New York service due to the importance of this market and look forward to welcoming visitors from New York on American Airlines to our beautiful and unspoiled country.”

Flights to Madrid will depart daily from JFK. Ángeles Alarcó Canosa, chief executive officer of tourism Madrid, said AA’s decision to expand a new connection between Madrid and New York would yield great results.

“The new route will help New Yorkers get to know Madrid’s gastronomy, which includes the best of Spanish international cuisine, its richness in culture and museums, its more than 450 performing arts attractions, as well as its amazing hotels and shopping opportunities,” he said. “At the same time the new route will open up additional opportunities for Madridians and other Spaniards to discover all the great things the Big Apple has to offer.”

The daily Manchester flight also welcomes travelers to an affordable getaway in the city known for its pubs, locally produced beer, fish and chips and the popular Indie music scene.

“We’re delighted that American Airlines is increasing its operation into Manchester,” said Andrew Stokes, chief executive of marketing Manchester. “We welcome the opportunity to work with them on promoting Manchester to the New York market.”

For more information on flights and fares through AA, visit AA.com.