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Continental Airlines and Continental Express to Launch Twice Daily Nonstop Service Between Birmingham and the New York Area

BIRMINGHAM, Ala., October 13, 1998 -- Continental Airlines (NYSE: CAI.B and CAI.A) together with Continental Express today announced they will begin nonstop jet service twice daily between Birmingham and their hub in New York/Newark, effective Feb. 12, 1999. This will be the only nonstop service from Birmingham to the New York area.

The daily nonstop flights depart Birmingham at 7:10 a.m. and 6:20 p.m., arriving in Newark at 10:20 a.m. and 9:45 p.m. respectively. The return flights leave Newark at 11:05 a.m. and 4:15 p.m., arriving in Birmingham at 12:37 p.m. and 5:50 p.m. respectively. Continental will operate all-jet service to Birmingham using a 128-passenger Boeing 737-300 aircraft. Continental Express will operate its new 50-passenger Embraer-145 Regional Jet. The two nonstops will complement Continental's previously announced daily same plane service between Birmingham and Newark via Atlanta, beginning Dec. 15, 1998.

With these three new flights, plus three existing daily nonstops between Birmingham and Houston, Continental and Continental Express will have a combined total of six flights a day in February, doubling its current capacity.

"These new flights are important not only to the development of our hub in the New York area, but also they represent our strong continued commitment to improving air service options for travelers in the greater Birmingham area," said Jim Moody, Continental Airlines' Field Business Leader. "This service will provide business and leisure travelers from Birmingham convenient access to the New York area, as well as beyond service throughout the Northeast and Europe."

"Continental's announcement of new nonstop service between Birmingham and Newark will now enable our customers an opportunity to fly nonstop from Birmingham to nine of the top ten travel markets for this area," said James A. Brough, Executive Director Birmingham Airport Authority. The new Birmingham-Newark nonstops go on sale today, with a round-trip off-peak excursion fare of $319. A round-trip 21-day advance peak fare is $347, and the unrestricted one-way fare is $524. 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 and Europe via its Houston and Newark gateways.

Fares do not include Passenger Facility Charges of up to $12 depending upon routing. Fares, other than unrestricted fares are non-refundable, but may be changed upon payment of a $75 fee. Fares are subject to change without notice.