Continental Airlines announces major expansions of its Houston, Newark and Cleveland hubs.

today announced significant expansions at its three domestic hubs in Houston, Newark and Cleveland this summer -- boosting the number of flights in each city to its highest level ever. The new schedule includes four new domestic destinations, several new domestic and international flights, as well as increased Transcontinental service.

Effective June 6, Continental will jump to 359 daily departures from Newark, compared to 315 last summer. Houston will grow to 429 flights, up from 406 last summer. Cleveland departures will increase to 235 from 172 last summer.

Continental, which reported a record-breaking $224 million profit in 1995 after profit sharing, said the increased capacity will come from the elimination of select unprofitable flights, as well as five new previously announced aircraft the airline is receiving in 1996.

As part of its Go Forward Plan for 1996, Continental said it will focus growth on profitable routes from its hubs. "We must grow where the airline will make money," said Ben Baldanza, vice president-pricing and route scheduling.

Houston New Service

Continental will add 23 new flights and inaugurate nonstop service to seven new destinations from Houston Intercontinental Airport, raising the number of non-stop destinations served from 97 to 104 this summer. The airline will offer 322 daily jet and 107 Continental Express flights.

New cities served nonstop Number of

from Houston eff. 6/6 daily departures

Hartford, Conn. 1

Lubbock, Texas  3

Norfolk, Va. 2

Portland, Ore. 2

Raleigh/Durham, N.C. 2

San Jose, Calif. 2

Washington, D.C./Dulles 2

Three of the new destinations -- Lubbock, Portland and San Jose -- currently do not have Continental service and will be new destinations for the airline. In the other four cities, Continental currently provides service via its Newark or Cleveland hubs.

Houston Frequency Improvements

Thirteen existing destinations from Houston will see increases in service, including Atlanta, Austin, Cleveland, Columbus, Dallas/Fort Worth, Los Angeles, Newark, San Francisco and Seattle. In addition, Continental will institute jet service in combination with existing Continental Express service to Lafayette, La.

Latin America service from Houston is also being expanded with an increase from seven to 11 flights per week to San Pedro Sula, Honduras, from seven to 10 weekly flights to Guatemala City, Guatemala, and from seven to 12 weekly flights to Panama City, Panama. Continental will also increase its nonstop service to London/Gatwick from seven to 11.

Newark New Service

Continental will inaugurate service on three new routes from Newark this summer, as well as increase frequency on various domestic and international existing routes. The airline will offer 237 daily jet departures and 122 daily Continental Express flights.

New cities served nonstop Number of

from Newark eff. 6/6 daily departures

Charleston, S.C. 2

Charlotte, N.C. 3

San Antonio, Texas  1

Charlotte does not currently have any Continental service and will be a new destination for the airline. In the other two cities, Continental currently provides service to hubs other than Newark.

In addition, Continental will institute jet service in combination with the existing Continental Express service to Portland, Maine, Providence, R.I., Rochester, N.Y., and Washington, D.C./Dulles International Airport. Continental will be providing the only jet service to Portland from the Newark/New York area.

Newark Frequency Improvements

Continental will also increase service on select routes it already serves from Newark. Los Angeles flights will increase from four to five per day. Frequency on the San Francisco route will expand from three to four, and service from Newark to Seattle/Tacoma will be offered twice a day versus the current single daily flight. Additionally, flights to Montreal will increase to four daily, up from two per day.

Flights to London/Gatwick will increase from seven times per week to 13 times per week, effective June 21. The additional service will be the only daylight flight from the Newark/New York area to London/Gatwick.

Continental is inaugurating daily nonstop service from Newark to Bogota, Colombia, continuing to Quito, Ecuador, effective June 6. Continental will also begin a once-a-week flight from Newark to San Salvador, El Salvador, and continuing to Guatemala City, Guatemala. As previously announced, Newark-Lima service begins March 14.

Cleveland New Service

This summer Continental and Continental Express will operate 235 daily departures from Hopkins International Airport with nonstop service to 61 destinations compared to 172 flights last summer to 46 destinations.

New cities served nonstop Number of

from Cleveland eff. 6/6 daily departures

Norfolk, Va. 1

Providence, R.I. 1

Raleigh/Durham, N.C. 1

Additionally, Continental will invest in further modifications to its Cleveland facilities, including expanding the ticket counter space, doubling its baggage system capacity and updating its long-haul fleet with new state-of-the-art inflight entertainment system for its West Coast flights.

Continental Update

In 1995, Continental earned a record $224 million, soared from worst-to-first in several key customer service areas, and was named stock of the year on the New York Stock Exchange, by Business Week magazine. Continental is the fifth largest airline in the U.S., offering more than 2,000 jet and Express flights daily to 127 U.S. and 57 international destinations. Operating major hubs in Houston, Newark and Cleveland, Continental is strategically positioned for transcontinental travel, and offers extensive service to Latin America and Europe via its Houston and Newark gateways.

CONTACT: Continental Airlines, Houston

Corporate Communications, 713/834-5080.