Air Transport World Magazine honors Continental Airlines as 'Airline of the Year'.

WASHINGTON, D.C.--(BUSINESS WIRE)--Jan. 22, 1997--Air Transport World Magazine, the leading monthly magazine for airline executives and professionals, named Continental Airlines its 1996 Airline of the Year in its 23rd Annual Airline Industry Achievement Awards program.

The ATW editors selected Continental Airlines for top honors based on a combination of factors, including its strong financial performance in 1996, significant operational improvements as reflected in U.S. Dept. of Transportation statistics and its success in winning back business travelers through superior passenger service and on-time performance.

The magazine credited Chairman and CEO Gordon Bethune and his executive team with creating a positive attitude and noted that Continental's employees had responded with enthusiasm and pride in their airline.

"Few airlines have transformed themselves as completely and rapidly as has Houston-based Continental Airlines. Just over two years ago, it appeared to be headed toward a third bankruptcy reorganization. Today, it is one of the country's most profitable airlines and receives high marks for its passenger service from customers," said ATW Editor-in-Chief J.A. Donoghue.

The editors of ATW noted that Continental boosted unit revenue 22 percent in two years, while yield--a reflection of average ticket prices-- rose 16 percent over the same period. Both figures demonstrate that Continental is winning back higher-fare business travelers. Continental has outperformed the industry as a whole in improving yield and unit revenue.

Continental's success is largely owing to the four-part "Go Forward" plan adopted in 1995. Under the "Go-Forward" plan, the airline eliminated its low-fare, "no frills" Continental Lite experiment and focused on its core hubs at Cleveland, Houston and Newark.

It restored frequent-flier perks and began rationalizing its fleet into fewer equipment types. Surplus aircraft were retired. Pay raises and bonuses were linked to improvements in operational performance.

Wall Street has recognized the airline's performance by boosting the price of its Class B common stock five-fold over the past two years.

Air Transport World, now in its 34th year of publication, is the leading monthly trade magazine covering the global airline and air transport manufacturing industries, with a readership of more than 200,000 professionals around the world.

It began its awards program in 1974 to recognize and reward excellence in the airline industry. ATW's editors have more than 100 years of combined experience in reporting on the airline industry. ATW is published by Penton Publishing, Inc., Cleveland, Ohio.

For additional information, contact J.A. Donoghue, Editor in Chief, Tel: [phone], FAX: [phone]. -0- NOTE TO EDITORS: Full coverage of all the award winners is available. Award winners are also identified and discussed in the February issue of Air Transport World. Contact J.A. Donoghue.

CONTACT: Air Transport World Magazine,

J. A. Donoghue, Editor-in-Chief, 202/659-8500