[PW1252] Continental Airlines Financial Reports

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Financial and Operations reports for [PW1252] Continental Airlines Jan-89 to Dec-89.

1989   
Revenue   
Sales   € 813,333,781
Misc   € 2,077,305
Aircraft sales   € 0
Other   € 0
   
Total Revenue € 815,411,086
   
Expenses   
Fuel   € 10,185,733
wages € 9,146,849
misc   € 73,099,581
Lease   € 0
Gates   € 75,162,500
Maintenance € 32,879,430
Hubs   € 67,397,750
Purchases   € 407,036,127
Marketing   € 1,838,859
other   € 1,770,000

Total Expenses € 678,516,829
   
Profit   € 136,894,257
   
Profit Margin 17%
MCAR   4.03% (Maintenance costs against Revenue)
PAR   49.92% (Purchases against Revenue)

Continental Airline has managed to create a strong foundation in its first year of operations, achieving a 17% gross profit margin on its first year of Operations. Over the last year we have been able to steadily expand the airline so that we are able to offer better coverage of Europe, at present we operate out of LHR and CDG. We are looking to start operations at a further 3 European airports within the coming year. Currently we are the top carrier out of LHR with 71.4% of market share, we hold second place at CDG with 29.6% of market share. We are ranked 1st in Europe (at the end of 1989) and 1st globally (at the end of 1989)

We will be looking to double our operations in Europe over the coming year, through doing so we hope to double our revenue on 1989's figures for 1990.

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Financial and Operations Report for [PW1252] Continental Airlines Jan-90 to Dec-90

1990
Income   
Sales   € 3,981,339,917
Misc   € 12,922,303
Aircraft sales € 344,950,000
Other   € 3,250,000
   
Total Revenue € 4,342,462,220
   
Expenses   
Fuel   € 70,033,620
wages € 48,023,299
misc   € 385,857,730
Lease   € 0
Gates   € 190,425,000
Maintenance € 311,529,295
Hubs   € 181,197,250
Purchases   € 2,671,655,494
Marketing   € 6,735,606
other   € 11,630,000

Total Expenses   € 3,877,087,294
   
Profit   € 465,374,926
   
Profit Margin   11%
MCAR   7.17% (Maintenance costs against Revenue)
PAR   61.52% (Purchases against Revenue)

Continental Airline has managed to expand dramatically in our second year of operations, achieving an 11% gross profit margin. The reason for the decline in profit margin over this 12 month period is that Continental was providing below purchase price aircraft to an alliance member, this also accounts for the high purchase costs for the year.

Over the last year we have been able to steadily expand the European side of the airline so that we are able to offer better coverage of Europe, in our second year of trading we opened two further focus cities in Europe Berlin - Tegel and Zurich Airport. We have also launched the North American side of the business in mid 1990 with operations out of JFK, towards the end of the year we expanded North American operations further by launching operations from CLT. The expansion in Europe and North America has helped us to grow the business at an exponential rate.

In the forthcoming year we will be looking at developing our European and North American bases further, with more focus cities operating to a wider range of destinations. We currently have plans to open one further base in North America and a further two in Europe. Towards the end of the year we hope to have commenced operations in Asia, as it is a lucrative market that at present has little competition. We are ranked 1st in Europe (at the end of 1990) and 2nd globally (at the end of 1990).

[crower21]

Financial and Operations Report for [PW1252] Continental Airlines Jan-91 to Dec-91

1991   
Income   
Sales   €10,543,564,250
Misc   € 48,557,353
Aircraft sales € 131,640,533
Other   € 0
   
Total Revenue   € 10,723,762,136
   
Expenses   
Fuel   € 222,558,939
wages € 157,247,095
misc   € 1,078,355,067
Lease   € 0
Gates   € 429,637,500
Maintenance € 1,059,426,914
Hubs   € 327,096,750
Purchases   € 4,382,430,865
Marketing   € 24,012,248
   
Total expenditure € 7,680,765,378
   
Profit   € 3,042,996,758
   
Profit Margin 28%
MCAR   9.88% Maintenance costs against revenue
PAR   40.87% Purchases against revenue

Continental has managed to continue its expansion over the last twelve months and has managed to achieve all the objectives set out in last years statement. In the past twelve months we have managed to increase our profit margin from 11% the previous year to 28%, we will be looking at maintaining a profit margin of 20% or above in coming years.

Over the last year we have further developed our fleet (which now consists of 105 aircraft) and also our destination base. Adding new routes and destinations all across Europe, North America and Asia. In the latter part of 1991 we also started operations to central and south American destinations, also in Europe we've started offering flight to the middle east.

We regret the fact that we had to close operations out of TXL Berlin - Tegel this year due to the small revenue stream. We switched operations from TXL to MAD in early November. We now offer international flights from MAD to north America and we will be shortly adding flights to the middle east.

In the forthcoming year we'll be looking at a further development of our central and south American destinations and be looking at establishing a fourth North American focus city. We will continue to develop our fleet and add new destinations to all of our bases. The area we wish to develop over the next twelve months is our Asian market, as at present it contributes about 11% of our annual income compared to 28% from North America and 61% from Europe. We are ranked 1st in Europe (at the end of 1991) and 2nd globally (at the end of 1991).

Some acknowledgements for this year:
We'd like to thank Who Dey Air for their continued support as part of the Oneworld alliance and also to Tradewinds who has made it a more interesting market in North America over the last couple of months (we may be cursing you for driving down prices and pinching our market share but it adds an element of competition that we have so far not encountered and makes it fun)

Key Stats:
Flying 47.8 million passengers worldwide each year.
Operating a fleet of 114 aircraft, that covers a vast part of the Northern hemisphere, flying 552 routes.
Currently ranked first for market share at 7 of the 9 airports we operate from. Other two we currently have the second highest market share at those airports.
Average fleet age of 0.8

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Half year Financial and Operations Report for [PW1252] Continental Airlines Jan-92 to Jul-92

1992   
Income   
Sales   € 9,578,021,580
Misc   € 42,839,241
Aircraft sales € 400,000,000
Other   € 1,235,661
   
Total   € 10,022,096,482
   
Expenses   
Fuel   € 209,211,295
wages € 163,289,970
misc   € 963,229,301
Lease   € 0
Gates   € 348,662,500
Maintenance € 1,081,279,155
Hubs   € 44,835,671
Purchases   € 3,690,321,246
Marketing   € 23,195,534
   
Total Expenses € 6,524,024,672
   
Profit   € 3,498,071,810
   
Profit Margin 35%
MCAR   10.79% Maintenance Costs against revenue
PAR   36.82% Purchases against revenue

Over the last 6 months we have added a further 216 routes, covering the rest of Europe, further extending our reach in North America and developing our South and Central American links out of our alliance hubs. We have seen a strong increase in ticket revenue over the last 6 months that is almost equal to 1991's full sales. We've added a further 25 destinations to our European operations and a further 20 destinations to our North American operations. In Asia we have only added an extra 5 destinations but are looking at developing this further in the latter part of the year.

We have increased profits from Asia and North America on average by 50% on December 1991 figures, further establishing ourselves at ATL. CLT, JFK and our alliance hubs in North America. In the first two months of 1992 we opened and completed our roll out at Tiawan International and now hold 33.3% of market share at the airport. We have seen on average all our hubs market share grow by 11.8 % in the 6 months after December 1991, apart from LHR, which has seen increased competition over the last 6 months and market share dropped by 5.3%. At the Beginning of July 1992 we are ranked 1st in Europe and 1st globally.

We have increased our Asian market by 700 million, making the yearly revenue account for 10% of ticket sales
We have increased our North American market by 2.2 billion, making the yearly revenue account for 32% of ticket sales
We have increased our European market by 3.3 billion, making the yearly revenue account for 58% of ticket sales

Key Stats:
Flying 75.7 million passengers annually (up 27.8 million on Dec 1991 figures)
Currently ranked first for market share at 7 of the 10 airports we operate from. At the other three we currently have the second highest market share.
Operating a fleet of 159 aircraft (up 45 aircraft on Dec 1991 figures)
Average aircraft age of 1.0 (up 0.2 on Dec 1991 figures)

[crower21]

Financial and Operations Report for [PW1252] Continental Airlines Jan-92 to Dec-92

1992   
Income   
Sales   € 18,663,718,705
Misc   € 85,537,432
Aircraft sales € 445,000,000
Other   € 2,118,276
   
Total Revenue € 19,196,374,413
   
Expenses   
Fuel   € 411,181,695
Wages € 329,467,397
Misc   € 1,889,980,331
Lease   € 0
Gates   € 659,825,000
Maintenance € 2,198,859,062
Hubs   € 57,371,540
Purchases   € 5,538,970,216
Marketing   € 31,536,234
   
Total Expenditure € 11,117,191,475
   
Profit   € 8,079,182,938
   
Profit Margin 42%
MCAR   11.45% (Maintenance Costs against revenue)
PAR   28.85% (Purchases against revenue)

Continental has managed to continue its expansion over the last twelve months and has managed to achieve all the objectives set out in last years statement. In the past twelve months we have managed to increase our profit margin from 28% the previous year to 42%, we will be looking at maintaining a profit margin of 20% or above in coming years.

We've been developing our destination base over the last twelve months and now offer routes to 246 destinations worldwide, our main development area has been Europe and North America. Our addition on central and south American destinations has allowed to us offer a wide service to our customers. Continental has continually been at the forefront of market differentiation and will be looking at continuing this. Our Asian market has increased dramatically over the last twelve months with the introduction of a new focus city out of Taiwan International. As a result to all of this we have seen an average increase of 14.7% in our market share at each airport. This is a massive improvement from the average loss of market share the previous year which is -14.66%. We have managed to recoup the lost market share in 1991 in 1992 and grow market share by 0.04%

Over the coming twelve months we will be looking at establishing links from Europe to Asia and to increase our addition on African destinations. We will continue are development of our European base and will be looking a serving an even wider consumer spectrum, by December 1993. With the help of our alliance members we will be looking at further broadening our Asian market and North American connections, we hope that we will also be able to increase the size of the Oneworld alliance to include more members.

We have high hopes for 1993 and are looking forward to the forthcoming development of Continental Airlines to help solidify our position as the market leader and developer in Europe and Globally. We are currently ranked 1st in Europe (at the end of 1991) and s1t globally (at the end of 1992).

Some acknowledgements for this year:
We'd like to thank Who Dey Air for their continued support as part of the Oneworld alliance and we'd also like to congratulate some of the new members of the airline world who have developed well over the last twelve months.

We have increased our Asian market by €867 million, making the yearly revenue account for 10% of ticket sales
We have increased our North American market by €2.904 billion, making the yearly revenue account for 33% of ticket sales
We have increased our European market by €3.994 billion, making the yearly revenue account for 57% of ticket sales


Key Stats:
Flying 83.2 million passengers annually (up 35.4 million on Dec 1991 figures)
Currently ranked first for market share at 7 of the 10 airports we operate from. At the other three we currently have the second highest market share.
Operating a fleet of 183 aircraft (up 78 aircraft on Dec 1991 figures)
Average aircraft age of 1.2 (up 0.4 on Dec 1991 figures)