News Release
Continental Airlines Increases Size of Stock Repurchase Program by Another $100 Million
HOUSTON, September 24, 1998 -- Continental Airlines (NYSE: CAI.B and CAI.A) announced today that its Board of Directors has authorized a further $100 million increase in the size of the company's stock repurchase program, from $200 million to $300 million. The company's repurchase program authorizes the repurchase of the company's common stock and convertible securities. The company has expended approximately $185 million repurchasing its stock since the program began in March 1998.
In announcing the latest increase in the size of the program, Larry Kellner, Continental Airlines' Chief Financial Officer, said, "At recent stock prices, increasing the size of our repurchase program is the right move. We continue to have great confidence in the fundamentals of our business, both financially and operationally. With this increase in our repurchase program, we are no longer targeting the maintenance of a specific number of shares for our diluted earnings per share calculation."
Continental Airlines currently has outstanding approximately 48.3 million Class B shares and 11.4 million Class A shares, and convertible securities (8.5% Convertible Trust Originated Preferred Securities and 6 3/4% Convertible Subordinated Notes) convertible into approximately 17.9 million Class Bshares.
The repurchases may be effected from time to time in accordance with applicable securities laws, through solicited or unsolicited transactions in the market or in privately negotiated transactions. No time limit was placed on the duration of the repurchase program. Subject to applicable securities laws, such repurchases will be at times and in amounts as the company deems appropriate.
Continental is the fifth largest airline in the U.S., offering more than 2,000 departures daily to 125 domestic and 67 international destinations. Operating major hubs in Newark, Houston and Cleveland, Continental (http://www.flycontinental.com) is strategically positioned for transcontinental travel, and offers extensive service to Latin America in number of destinations and passengers served. Continental serves 20 countries and 36 cities in Latin America and the Caribbean operating daily non-stop flights for nearly 500 weekly departures to the region.