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Continental Airlines Announces Temporary Reductions in Mexico Capacity

Written by thomas · Filed Under Commercial 

May 1, 2009

thomas

Total capacity to Mexico reduced by 50 percent; Continental continues to serve all Mexico destinations

HOUSTON, May 1 /PRNewswire-FirstCall/ — Continental Airlines (NYSE: CAL) today released the following employee bulletin to its more than 43,000 employees.

EMPLOYEE BULLETIN NO. 9

Continental today announced significant, temporary reductions in capacity to Mexico, effective May 4, 2009, in response to lower demand. Initially, for the month of May, the company has reduced capacity to Mexico as measured by available seat miles (ASMs) by approximately 50 percent, compared to its original May 2009 flight schedule. Flight departures have been reduced by approximately 40 percent. These reductions constitute approximately 2.0 percent of Continental’s systemwide ASMs for May 2009 compared to its original May 2009 flight schedule. Reductions are being implemented by using smaller aircraft on flights to Mexico or by reducing the frequency of flights to any one destination. Prior to these reductions, Continental operated an average of 450 weekly flights to the country.

“Given the swift changes we are seeing in the marketplace, we need to react prudently but quickly to bring our capacity more into line with demand,” said Larry Kellner, chairman and chief executive officer. “We were already experiencing soft market conditions due to the economy, and now our Mexico routes in particular have extra weakness. Our plan going forward will be to continue to monitor demand levels we are seeing and adjust our capacity and costs accordingly.”

Continental continues to serve all 29 of its destinations in Mexico and customers are assured that return travel from Mexico remains available, although schedules and routings may change.

Continental is notifying affected customers about options for re-accommodation on different flights as close as possible in time to their original flights. In addition, the company extended its waiver policy for customers traveling to Mexico, allowing them to change their itinerary without penalty through May 31, 2009.

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