This summary is based on the fourth quarter fiscal 2007 earnings call conducted by Continental Airlines (CAL) on January 17, 2008.

Management:

- Chairman & CEO: Larry Kellner
- President: Jeff Smisek
- SVP of Corporate Communications: Ned Walker
- EVP & CFO: Jeff Misner
- EVP, Marketing: Jim Compton
- Director of IR: DeAnne Gabel

Key Investors Issues:

- Net income was $24 million, up from a loss of $4 million in 2006.
- Revenues increased 11.6% to $3.5 billion.
- The firm distributed a record $158 million of profit to co-workers.

Full Year Highlights:

- Net income of $566 million, was up 53% over the prior year.
- Revenue grew by 8.4% to $14.2 billion almost doubling the capacity growth rate.
- The firm averaged a record of 81.7 mainline load factor, up 5.6%.

Fourth Quarter Highlights:

The firm reported pre-tax income of $24 million compared to a pre-tax loss of $4 million on a combination of strong revenue growth and a continued focus on increasing efficiency throughout the business and other cost reducing initiatives.

- Operating income was $63 million excluding net special items or $80 million including the items.
- Top line growth was good in the seasonally weaker fourth quarter, with total revenue increasing 11.6% to $3.5 billion.
- Mainline RASM was up 6.9% driven by a yield increase of 7.6% as the mainline load factor decreased 0.5 points to 79.7%.
- Regional yield grew by 9.7% driving regional RASM up 9.8% load factor or about flat year-over-year at 77.3%.

RPMs increased 4.1 % year-over-year on a capacity increase of 4.7 %, resulting in a consolidated load factor of 79.4 %, 0.4 points lower than the prior year.

- Mainline RPMs increased 5.4 % over 2006, on a capacity increase of 6.1%.
- Despite several major winter storms in the mid-west and the Northeast during the quarter, the team delivered a system-wide mainline segment completion factor of 99.2%.
- The firm recorded $2.8 billion of unrestricted cash in short term investments.

Operational Performance:

- The monthly DOT on time performance ranked within the top half of the major network tiers in ten of the twelve months in 2007.
- This strong operational performance earned co-workers $33 million or $755.00 each in on-time incentive payments during 2007.
- Improvements in some maintenance and technology contracts, will save more than $100 million annually when they become fully implemented.
- Efficiency gains are to be achived by replacing some of the older less fuel efficient 737-500 aircrafts with new more fuel efficient 737-800 and 900 ERF aircraft to be delivered throughout 2008.

Fleet Agreements:

– The company announced in 2006 that it entered into agreement to sell 15-owned 737-500 aircrafts, and to date three exited the fleet and the remaining 12 are scheduled to exit the fleet by the end of 2008.
- It also entered into an agreement to terminate the leases on five additional 737-500 aircrafts which will be sold. These aircrafts are also scheduled to exit the fleet by the end of 2008.
- The 737-500 is the least fuel efficient, highest standard aircraft that the firm operates necessitating this change.

Operational Accomplishments:

- The firm’s employees earned $6 million in cash incentives, twice finishing in the top three of the network carriers for monthly on-time performance.
- The firm recorded a U.S. Department of Transportation (DOT) on-time arrival rate of 74.9% and a systemwide mainline segment completion factor of 99.2%.
- The firm announced that it will launch twice-daily nonstop service to London/Heathrow from both its New York and Houston hubs beginning March, 2008 and will continue to offer nonstop flights to London/Gatwick from both New York (twice daily) and Houston (daily), as well as Cleveland (daily, seasonal).

In in partnership with non-profit Sustainable Travel International, the company launched a carbon offsetting program, which allows customers to view the carbon footprint of their booked itinerary.

- Teamed with the Transportation Security Administration to be the first U.S. carrier to launch a Paperless Boarding Pass pilot program that allows passengers to receive boarding passes electronically on their cell phones or PDAs, and use those devices to pass through security and board the aircraft.
- Introduced new first-class menus on flights throughout the United States, Canada and to select Latin American and Caribbean destinations.
- For the 10th consecutive year, outranked all of its U.S. competition in international business class and domestic first class service, according to results of a survey of Condé Nast Traveler readers published in the magazine''s October 2007 edition.
- Chosen as the Best Airline for North American Travel in Business Traveler magazine''s 2007 Readers'' Choice Best in Business Travel Survey and for the second consecutive year, was one of 16 companies featured in Latin Business magazine''s Corporate Diversity Honor Roll.