CONTINENTAL AIRLINES SIMPLIFIES FARE STRUCTURE BY MOVING FUEL SURCHARGE INTO BASE FARES

25 July 2002

Effective immediately, Continental Airlines (NYSE: CAL) removed the "fuel surcharge" from all fares in the U.S. domestic and trans-border Canadian markets while increasing the applicable fares by $40 to reflect the same final round-trip amount.

The cost to travelers is not affected by this change. Continental made the modification to simplify its fare structure and to expedite the fare-quote process. With the fuel surcharge in effect on approximately [65%] percent of Continental's fares, this move eliminates the need to determine whether a surcharge is applicable in a particular market or on a particular fare, and allows the airline to more accurately reflect the full cost to the traveler in the initial fare display.

The fuel charge was instituted in 2000 to help offset higher fuel costs. On an average basis, a passenger's round trip with four flight segments accounts for 124 gallons of fuel consumption with a fuel cost of $89.70, based on second quarter prices (72.34 cents per gallon).