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|                                                                                                              |
|-------------------------------------------------------------------------------------------------------------------|
| UNITED      STATES SECURITIES AND EXCHANGE COMMISSION                                                             |
|  WASHINGTON,      D.C.  20549                                                                      |
|  FORM      10-K                                                                                              |
|  (Mark      One)                                                                                             |
| [X]      ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF                                                         |
| THE      SECURITIES EXCHANGE ACT OF 1934                                                                          |
| FOR      THE FISCAL YEAR ENDED DECEMBER 31, 2009                                                                  |
|  OR                                                                                                          |
|  [  ]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)      OF      |
| THE      SECURITIES EXCHANGE ACT OF 1934                                                                          |
| FOR      THE TRANSITION PERIOD FROM __________ TO __________                                                      |
|  Commission      File Number 1-10323                                                                         |
|                                                                                          |
|  CONTINENTAL      AIRLINES, INC.                                                                             |
| (Exact      name of registrant as specified in its charter)                                                       |
| Delaware                                                                                                          | 74-2099724 |
| (State      or other jurisdiction of incorporation or organization)                                               | (I.R.S.      Employer Identification No.) |
|                                                                                                              |   |
| 1600      Smith Street, Dept. HQSEO, Houston, Texas                                                               | 77002 |
| (Address      of principal executive offices)                                                                     | (Zip      Code) |
|  Registrant's      telephone number, including area    code:  713-324-2950                         |
|  Securities      registered pursuant to Section 12(b) of the Act:                                            |
|  Title of Each      Class                                                                                    | Name      of Each ExchangeOn Which      Registered |
|                                                                                                              |   |
| Class      B Common Stock, par value $.01 per share                                                               | New      York Stock Exchange |
|  Securities      registered pursuant to Section 12(g) of the      Act:    None           |

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| Class                                               | Outstanding at      February 16, 2010 |
|-----------------------------------------------------|---------------------------------------|
| Class      B Common Stock, $.01 par value per share | 139,057,281      shares               |

| DOCUMENTS      INCORPORATED BY REFERENCE                                                                     |
|--------------------------------------------------------------------------------------------------------------|
| Proxy      Statement for Annual Meeting of Stockholders to be held on June 9,      2010:  PART III |

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|          |                                                                                                                      | PAGE                                               |
|---------------|---------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------|
|          |                                                                                                                      |                                               |
| PART      I   |                                                                                                                      |                                               |
| Item      1.  | Business                                                                                                                  | 5                                                  |
|          |                                                                                                                      | Overview                                           | 5 |
|          |                                                                                                                      | Forward-Looking      Statements                    | 6 |
|          |                                                                                                                      | Domestic Operations                                | 6 |
|          |                                                                                                                      | International      Operations                      | 6 |
|          |                                                                                                                      | Alliances                                          | 7 |
|          |                                                                                                                      | Regional      Operations                           | 8 |
|          |                                                                                                                      | Marketing                                          | 10 |
|          |                                                                                                                      | Frequent Flyer      Program and      EliteAccess   | 11 |
|          |                                                                                                                      | Competition                                        | 12 |
|          |                                                                                                                      | Employees                                          | 13 |
|          |                                                                                                                      | Industry Regulation      and Airport      Access   | 14 |
| Item      1A. | Risk      Factors                                                                                                         | 17                                                 |
|          |                                                                                                                      | Risk Factors Relating      to the Company          | 17 |
|          |                                                                                                                      | Risk Factors Relating      to the Airline Industry | 22 |
| Item      1B. | Unresolved Staff      Comments                                                                                            | 26                                                 |
| Item      2.  | Properties                                                                                                                | 26                                                 |
|          |                                                                                                                      | Flight      Equipment                              | 26 |
|          |                                                                                                                      | Facilities                                         | 29 |
| Item      3.  | Legal      Proceedings                                                                                                    | 29                                                 |
|          |                                                                                                                      | Legal      Proceedings                             | 29 |
|          |                                                                                                                      | Environmental      Proceedings                     | 30 |
|          |                                                                                                                      | General                                            | 31 |
| Item      4.  | Submission of Matters      to a Vote of Security Holders                                                                  | 31                                                 |
|          |                                                                                                                      |                                               |
| PART      II  |                                                                                                                      |                                               |
| Item      5.  | Market for      Registrant's Common Equity, Related Stockholder      Matters and Issuer Purchases of Equity    Securities |  32                                           |
|          |                                                                                                                      | Common Stock      Information                      | 32 |
|          |                                                                                                                      | Equity Compensation      Plans                     | 32 |
|          |                                                                                                                      | Issuer Purchases of      Equity Securities         | 32 |
| Item      6.  | Selected      Financial      Data                                                                                         | 33                                                 |

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| Item      7.  | Management's      Discussion and Analysis of Financial      Condition      andResults of      Operations           |  39                                                          |
|---------------|--------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------|
|          |                                                                                                               | Overview                                                          | 39 |
|          |                                                                                                               | Results of      Operations                                        | 43 |
|          |                                                                                                               | Liquidity and      Capital Resources                              | 55 |
|          |                                                                                                               | Off-Balance      Sheet Arrangements                               | 62 |
|          |                                                                                                               | Critical Accounting Policies and      Estimates                   | 62 |
|          |                                                                                                               | Recently Issued      Accounting Standards                         | 70 |
|          |                                                                                                               | Related Party      Transactions                                   | 70 |
| Item      7A. | Quantitative and      Qualitative Disclosures About      Market      Risk                                          | 70                                                                |
| Item      8.  | Financial Statements      and Supplementary      Data                                                              | 73                                                                |
|          |                                                                                                               | Report of Independent      Registered Public Accounting Firm      | 73 |
|          |                                                                                                               | Consolidated      Statements of      Operations                   | 74 |
|          |                                                                                                               | Consolidated Balance      Sheets                                  | 76 |
|          |                                                                                                               |     Assets                                    | 76 |
|          |                                                                                                               |     Liabilities and      Stockholders' Equity | 77 |
|          |                                                                                                               | Consolidated      Statements of Cash Flows                        | 78 |
|          |                                                                                                               | Consolidated      Statements of Common      Stockholders' Equity  | 80 |
|          |                                                                                                               | Notes to Consolidated      Financial Statements                   | 82 |
| Item      9.  | Changes in and      Disagreements with Accountants on Accounting and Financial      Disclosure                     | 135                                                               |
| Item      9A. | Controls and      Procedures                                                                                       | 135                                                               |
| Item      9B. | Other Information                                                                                                  | 137                                                               |
|          |                                                                                                               |                                                              |
| PART      III |                                                                                                               |                                                              |
| Item      10. | Directors, Executive      Officers and Corporate Governance                                                        | 138                                                               |
| Item      11. | Executive      Compensation                                                                                        | 138                                                               |
| Item      12. | Security      Ownership of Certain Beneficial      Owners and Management and Related      Stockholder Matters |  138                                                         |
| Item      13. | Certain Relationships      and Related Transactions, and Director      Independence                                | 138                                                               |
| Item      14. | Principal      Accountant Fees      and Services                                                                   | 138                                                               |
|          |                                                                                                               |                                                              |
| PART      IV  |                                                                                                               |                                                              |
| Item      15. | Exhibits and Financial      Statement Schedules                                                                    | 139                                                               |
|          | Signatures                                                                                                         | 140                                                               |
|          | Index to      Exhibits                                                                                             | 142                                                               |

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|   Employee      Group                    | Approximate      Numberof      Full-timeEquivalent      Employees |   Representing      Union |  ContractAmendable      Date                                                  |
|----------------------------------------------------|-------------------------------------------------------------------|-------------------------------------|------------------------------------------------------------------------------------|
|                                               |                                                              |                                |                                                                               |
| Continental      FlightAttendants                  | 8,460                                                             |                                | International      Association ofMachinists      and AerospaceWorkers      ("IAM") | December      2009 |
|                                               |                                                              |                                |                                                                               |   |
| Continental      Pilots                            | 4,270                                                             |                                | Air      Line Pilots AssociationInternational      ("ALPA")                        | December      2008 |
|                                               |                                                              |                                |                                                                               |   |
| Continental      Mechanics                         | 3,965                                                             |                                | International      Brotherhood ofTeamsters      ("Teamsters")                      | December      2008  |
|                                               |                                                              |                                |                                                                               |   |
| CMI      Fleet and PassengerService      Employees | 420                                                               |                                | Teamsters                                                                          | November      2011 |
|                                               |                                                              |                                |                                                                               |   |
| CMI      Flight Attendants                         | 280                                                               |                                | IAM                                                                                | December      2010 |
|                                               |                                                              |                                |                                                                               |   |
| Continental      Dispatchers                       | 120                                                               |                                | Transport      Workers Union("TWU")                                                | December      2008 |
|                                               |                                                              |                                |                                                                               |   |
| CMI      Mechanics                                 | 125                                                               |                                | Teamsters                                                                          | December      2009 |
|                                               |                                                              |                                |                                                                               |   |
| Continental      FlightSimulator      Technicians  | 40                                                                |                                | TWU                                                                                | December      2012 |

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|                            |                            |   |                            |        | Seats      in                         | Average               |
|---------------------------------|---------------------------------|--------|---------------------------------|-------------|---------------------------------------|-----------------------|
|                            |                            |   |                            | Third-Party | Standard                              | Age                   |
| Aircraft      Type              | Total                           | Owned  | Leased                          | Aircraft    | Configuration                         |  (In      Years) |
|                            |                            |   |                            |        |                                  |                  |
| Mainline      (a):              |                            |   |                            |        |                                  |                  |
|   777-200ER           | 20                         |   | 8                          |        | 12                               |                  | -  |   | 285 |   | 9.6 |   |
|   767-400ER           | 16                         |   | 14                         |        | 2                                |                  | -  |   | 235 |   | 8.3 |   |
|   767-200ER           | 10                         |   | 9                          |        | 1                                |                  | -  |   | 174 |   | 8.8 |   |
|   757-300             | 18                         |   | 9                          |        | 9                                |                  | -  |   | 216 |   | 7.3 |   |
|   757-200             | 41                         |   | 15                         |        | 26                               |                  | -  |   | 175 |   | 12.9 |   |
|   737-900ER           | 30                         |   | 30                         |        | -                                |                  | -  |   | 173 |   | 1.2 |   |
|   737-900             | 12                         |   | 8                          |        | 4                                |                  | -  |   | 173 |   | 8.3 |   |
|   737-800             | 117                        |   | 44                         |        | 73                               |                  | -  |   | 160 |   | 7.8 |   |
|   737-700             | 36                         |   | 12                         |        | 24                               |                  | -  |   | 124 |   | 11.0 |   |
|   737-500             | 34                         |   | -                          |        | 34                               |                  | -  |   | 114 |   | 13.7 |   |
|   737-300             |      3 |   |      3 |        |      -  |                  |    - |   | 124 |   | 23.6 |   |
|   Total      mainline | 337                             |   |  152                       |        |  185                             |                  |    - |   |   |   | 9.0 |   |
|                            |                            |   |                            |        |                                  |                  |   |   |   |   |   |   |
| Regional      (b):              |                            |   |                            |        |                                  |                  |   |   |   |   |   |   |
|   ERJ-145XR           | 89                         |   | -                          |        | 89                               |                  | -   |   | 50 |   |   |   |
|   ERJ-145             | 138                        |   | 18                         |        | 105                              |                  | 15  | (c) | 50 |   |   |   |
|   CRJ200LR            | 7                          |   | -                          |        | -                                |                  | 7  | (c) | 50 |   |   |   |
|   Q400                | 14                         |   | -                          |        | -                                |                  | 14  | (d) | 74 |   |   |   |
|   Q200                |   16                  |   |     -       |        |      -       |                  |  16 | (e) | 37 |   |   |   |
|   Total      regional | 264                             |   |   18                  |        |  194                             |                  |  52 |   |   |   |   |   |
|                            |                            |   |                            |        |                                  |                  |   |   |   |   |   |   |
| Total                           | 601                             |   | 170                             |        | 379                                   |                  |    52 |   |   |   |   |   |

| (a) | Excludes      seven grounded Boeing 737-500 aircraft (four owned and three leased) and      ten grounded Boeing 737-300 aircraft (seven owned and three leased) and      two leased 757-300 aircraft delivered but not yet placed into      service. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | Excludes      25 ERJ-135 aircraft that are temporarily grounded and 15 ERJ145XR      aircraft, 17 ERJ-145 aircraft and five ERJ-135 aircraft that are subleased      to other operators, but are not operated on our behalf.                         |
| (c) | Operated      by Chautauqua under a capacity purchase agreement.                                                                                                                                                                                     |
| (d) | Operated      by Colgan under a capacity purchase agreement.                                                                                                                                                                                         |
| (e) | Operated      by CommutAir under a capacity purchase  agreement.                                                                                                                                                                                     |

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|   |   |                | Class      BCommon      Stock |
|--------|--------|---------------------|-------------------------------|
|   |   |                | High                          | Low |
|   |   |                |                          |   |
|   | 2009   | Fourth      Quarter | $18.75                        |   | $10.94 |   |
|   |   | Third      Quarter  | $17.55                        |   | $8.76 |   |
|   |   | Second      Quarter | $15.76                        |   | $7.86 |   |
|   |   | First      Quarter  | $21.83                        |   | $6.37 |   |
|   |   |                |                          |   |   |   |
|   | 2008   | Fourth      Quarter | $20.89                        |   | $9.49 |   |
|   |   | Third      Quarter  | $21.40                        |   | $5.91 |   |
|   |   | Second      Quarter | $23.42                        |   | $9.70 |   |
|   |   | First      Quarter  | $31.25                        |   | $17.19 |   |

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| Statement      of Operations Data (in millions except pershare data):                                                                          |                                        |                                        |                                        |                    |                                        |
|------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|-------------------------|---------------------------------------------|
|                                                                                                                                           | Year      Ended December 31,                |
|                                                                                                                                           | 2009                                        | 2008                                        | 2007                                        | 2006                    | 2005                                        |
|                                                                                                                                           |                                        |                                        |                                        |                    |                                        |
| Operating      revenue                                                                                                                         | $12,586                                | $15,241                                | $14,232                                | $13,128            | $11,208                                |
|                                                                                                                                           |                                        |                                        |                                        |                    |                                        |
| Operating      expenses                                                                                                                        | 12,732                                 | 15,555                                 | 13,545                                 | 12,660             | 11,247                                 |
|                                                                                                                                           |                                        |                                        |                                        |                    |                                        |
| Operating      income (loss)                                                                                                                   | (146)                                       | (314)                                  | 687                                    | 468                | (39)                                        |
|                                                                                                                                           |                                        |                                        |                                        |                    |                                        |
| Income      (loss) before cumulative effect of change  in      accounting principle                                                  |  (282)                                 |  (586)                            |  439                              |  361          |  (75)                                  |
|                                                                                                                                           |                                        |                                        |                                        |                    |                                        |
| Cumulative      effect of change in accounting principle                                                                                       | -                                      | -                                      | -                                      | (26)                    | -                                      |
|                                                                                                                                           |                                        |                                        |                                        |                    |                                        |
| Net      income (loss)                                                                                                                         | (282)                                       | (586)                                  | 439                                    | 335                | (75)                                        |
|                                                                                                                                           |                                        |                                        |                                        |                    |                                        |
| Net      income (loss) excluding special items (1)                                                                                             | (295)                                       | (352)                                       | 529                                    | 296                | (212)                                       |
|                                                                                                                                           |                                        |                                        |                                        |                    |                                        |
| Earnings      (loss) per share:                                                                                                                |                                        |                                        |                                        |                    |                                        |
|   Basic:                                                                                                                             |                                        |                                        |                                        |                    |                                        |
|     Income      (loss) before cumulative effect of      change      in accounting principle  |  $(2.18)                               |  $(5.54)                               |  $ 4.53                      |  $ 4.05  |  $(1.06)                               |
|     Cumulative      effect of change in accounting principle                                                               |        - |        - |        - | (0.29)                  |        - |
|     Net      income (loss)                                                                                                 | $(2.18)                                     | $(5.54)                                     | $ 4.53                                 | $ 3.76             | $(1.06)                                     |
|                                                                                                                                           |                                        |                                        |                                        |                    |                                        |
|   Diluted:                                                                                                                           |                                        |                                        |                                        |                    |                                        |
|     Income      (loss) before cumulative effect of       change      in accounting principle |  $(2.18)                               |  $(5.54)                               |  $ 4.05                      |  $ 3.51  |  $(1.08)                               |
|     Cumulative      effect of change in accounting principle                                                               |        - |        - |        - | (0.23)                  |        - |
|     Net      income (loss)                                                                                                 | $(2.18)                                     | $(5.54)                                     | $ 4.05                                 | $ 3.28             | $(1.08)                                     |
|                                                                                                                                           |                                        |                                        |                                        |                    |                                        |

| (1) | See      “Reconciliation of GAAP to non-GAAP Financial Measures” in this      Item. |
|-----|-------------------------------------------------------------------------------------------------|

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| Balance      Sheet Data (in millions):                                                    |                    |               |               |               |                     |
|-------------------------------------------------------------------------------------------|-------------------------|--------------------|--------------------|--------------------|--------------------------|
|                                                                                      | As      of December 31, |
|                                                                                      | 2009                    | 2008               | 2007               | 2006               | 2005                     |
|                                                                                      |                    |               |               |               |                     |
| Unrestricted      cash, cash equivalents and   short-term      investments |  $2,856       |  $2,643  |  $2,803  |  $2,484  |  $ 1,957  |
|                                                                                      |                    |               |               |               |                     |
| Total      assets                                                                         | 12,781             | 12,686        | 12,105        | 11,308        | 10,529              |
|                                                                                      |                    |               |               |               |                     |
| Long-term      debt and capital lease obligations                                         | 5,291              | 5,353         | 4,337         | 4,820         | 5,010               |
|                                                                                      |                    |               |               |               |                     |
| Stockholders’      equity                                                           | 590                | 123           | 1,569         | 386           | 273                 |

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|                                                                                                                        | Year      Ended December 31, |
|-----------------------------------------------------------------------------------------------------------------------------|------------------------------|
|                                                                                                                        | 2009                         | 2008 | 2007 | 2006 | 2005 |
|                                                                                                                        |                         |   |   |   |   |
| Mainline      Operations:                                                                                                   |                         |   |   |   |   |
| Passengers      (thousands) (1)                                                                                             | 45,573                       | 48,682 | 50,960 | 48,788 | 44,939 |
| Revenue      passenger miles (millions) (2)                                                                                 | 79,824                       | 82,806 | 84,309 | 79,192 | 71,261 |
| Available      seat miles (millions) (3)                                                                                    | 97,407                       | 102,527 | 103,139 | 97,667 | 89,647 |
| Cargo      ton miles (millions)                                                                                             | 948                          | 1,005 | 1,037 | 1,075 | 1,018 |
|                                                                                                                        |                         |   |   |   |   |
| Passenger      load factor (4):                                                                                             |                         |   |   |   |   |
|   Mainline                                                                                                        | 81.9%                        | 80.8% | 81.7% | 81.1% | 79.5% |
|   Domestic                                                                                                        | 84.8%                        | 83.3% | 83.9% | 83.6% | 81.2% |
|   International                                                                                                   | 79.2%                        | 78.2% | 79.4% | 78.2% | 77.5% |
|                                                                                                                        |                         |   |   |   |   |
| Passenger      revenue per available seat mile (cents)                                                                      | 9.49                         | 11.10 | 10.47 | 9.96 | 9.32 |
| Total      revenue per available seat mile (cents)                                                                          | 10.92                        | 12.51 | 11.65 | 11.17 | 10.46 |
| Average      yield per revenue passenger mile (cents) (5)                                                                   | 11.58                        | 13.75 | 12.80 | 12.29 | 11.73 |
| Average      fare per revenue passenger                                                                                     | $204.89                      | $236.26 | $214.06 | $201.81 | $188.67 |
|                                                                                                                        |                         |   |   |   |   |
| Cost      per available seat mile (cents)                                                                                   | 10.75                        | 12.44 | 10.83 | 10.56 | 10.22 |
| Cost      per available seat mile excluding special  charges      and aircraft fuel and related taxes (cents) (6) |  7.79                   |  7.50 |  7.57 |  7.42 |  7.42 |
|                                                                                                                        |                         |   |   |   |   |
| Average      price per gallon of fuel, including fuel taxes                                                                 | $1.98                        | $3.27 | $2.18 | $2.06 | $1.78 |
| Fuel      gallons consumed (millions)                                                                                       | 1,395                        | 1,498 | 1,542 | 1,471 | 1,376 |
|                                                                                                                        |                         |   |   |   |   |
| Aircraft      in fleet at end of period (7)                                                                                 | 337                          | 350 | 365 | 366 | 356 |
| Average      length of aircraft flight (miles)                                                                              | 1,550                        | 1,494 | 1,450 | 1,431 | 1,388 |
| Average      daily utilization of each aircraft (hours) (8)                                                                 | 10:37                        | 11:06 | 11:34 | 11:07 | 10:31 |
|                                                                                                                        |                         |   |   |   |   |
| Regional      Operations:                                                                                                   |                         |   |   |   |   |
| Passengers      (thousands) (1)                                                                                             | 17,236                       | 18,010 | 17,970 | 18,331 | 16,076 |
| Revenue      passenger miles (millions) (2)                                                                                 | 9,312                        | 9,880 | 9,856 | 10,325 | 8,938 |
| Available      seat miles (millions) (3)                                                                                    | 12,147                       | 12,984 | 12,599 | 13,251 | 11,973 |
| Passenger      load factor (4)                                                                                              | 76.7%                        | 76.1% | 78.2% | 77.9% | 74.7% |
| Passenger      revenue per available seat mile (cents)                                                                      | 15.59                        | 18.14 | 17.47 | 17.15 | 15.67 |
| Average      yield per revenue passenger mile (cents) (5)                                                                   | 20.34                        | 23.83 | 22.33 | 22.01 | 20.99 |
| Aircraft      in fleet at end of period (7)                                                                                 | 264                          | 282 | 263 | 282 | 266 |
|                                                                                                                        |                         |   |   |   |   |

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|                                                                                                                        | Year      Ended December 31, |
|-----------------------------------------------------------------------------------------------------------------------------|------------------------------|
|                                                                                                                        | 2009                         | 2008 | 2007 | 2006 | 2005 |
|                                                                                                                        |                         |   |   |   |   |
| Consolidated      Operations:                                                                                               |                         |   |   |   |   |
| Passengers      (thousands) (1)                                                                                             | 62,809                       | 66,692 | 68,930 | 67,119 | 61,015 |
| Revenue      passenger miles (millions) (2)                                                                                 | 89,136                       | 92,686 | 94,165 | 89,517 | 80,199 |
| Available      seat miles (millions) (3)                                                                                    | 109,554                      | 115,511 | 115,738 | 110,918 | 101,620 |
| Passenger      load factor (4)                                                                                              | 81.4%                        | 80.2% | 81.4% | 80.7% | 78.9% |
|                                                                                                                        |                         |   |   |   |   |
| Passenger      revenue per available seat mile (cents)                                                                      | 10.17                        | 11.89 | 11.23 | 10.82 | 10.07 |
| Average      yield per revenue passenger mile (cents) (5)                                                                   | 12.50                        | 14.82 | 13.80 | 13.41 | 12.76 |
|                                                                                                                        |                         |   |   |   |   |
| Cost      per available seat mile (cents)                                                                                   | 11.62                        | 13.47 | 11.70 | 11.41 | 11.07 |
| Cost      per available seat mile excluding special  charges      and aircraft fuel and related taxes (cents) (6) |  8.46                   |  8.19 |  8.21 |  8.06 |  8.08 |
|                                                                                                                        |                         |   |   |   |   |
| Average      price per gallon of fuel, including fuel taxes                                                                 | $1.97                        | $3.27 | $2.18 | $2.06 | $1.78 |
| Fuel      gallons consumed (millions)                                                                                       | 1,681                        | 1,809 | 1,853 | 1,791 | 1,671 |

| (1) | The      number of revenue passengers measured by each flight segment      flown.                                                                                                                                                                                                |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | The      number of scheduled miles flown by revenue passengers.                                                                                                                                                                                                                  |
| (3) | The      number of seats available for passengers multiplied by the number of      scheduled miles those seats are flown.                                                                                                                                                        |
| (4) | Revenue      passenger miles divided by available seat miles.                                                                                                                                                                                                                    |
| (5) | The      average passenger revenue received for each revenue passenger mile      flown.                                                                                                                                                                                          |
| (6) | See      “Reconciliation of GAAP to non-GAAP Financial Measures” in this      Item.                                                                                                                                                                                  |
| (7) | Excludes      aircraft that were removed from service.  Regional aircraft      include aircraft operated by all carriers under capacity purchase      agreements, but exclude any aircraft that were subleased to other      operators but not operated on our behalf. |
| (8) | The      average number of hours per day that an aircraft flown in revenue service      is operated (from gate departure to gate  arrival).                                                                                                                                      |

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|                                            | 2009                                                                                                                                                    | 2008                                  | 2007   | 2006                                        | 2005   |
|-------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------|--------|---------------------------------------------|--------|
|                                            |                                                                                                                                                    |                                  |   |                                        |   |
| Net      income (loss) excluding special items: |
|                                            | Net      income (loss) – GAAP                                                                                                                     | $(282)                                |   | $(586)                                      |   | $439 |   | $335 |   | $(75) |   |
|                                            | Special      charges:                                                                                                                                   |                                  |   |                                        |   |   |   |   |   |   |   |
|                                            |   Operating      (expense) income:                                                                                                            |                                  |   |                                        |   |   |   |   |   |   |   |
|                                            | Aircraft-related      charges                                                                                                                           | (89)                                  |   | (40)                                        |   | 22  |   | 18  |   | 16  |   |
|                                            | Pension      settlement/curtailment charges                                                                                                             | (29)                                  |   | (52)                                        |   | (31) |   | (59) |   | (83) |   |
|                                            | Severance                                                                                                                                               | (5)                                   |   | (34)                                        |   | -  |   | -  |   | -  |   |
|                                            | Route      impairment                                                                                                                                   | (12)                                  |   | (18)                                        |   | -  |   | -  |   | -  |   |
|                                            | Other                                                                                                                                                   | (10)                                  |   | (37)                                        |   | (4) |   | 14  |   | -  |   |
|                                            |                                                                                                                                                    |                                  |   |                                        |   |   |   |   |   |   |   |
|                                            |   Other      special (expense) income items:                                                                                                  |                                  |   |                                        |   |   |   |   |   |   |   |
|                                            |       Gains      on sale of investments                                                                                   | -                                |   | 78                                     |   | 37  |   | 92  |   | 204  |   |
|                                            |       Loss      on fuel hedge contracts with Lehman        Brothers               |  -                          |   |  (125)                                 |   |  -  |   |  -  |   |  -  |   |
|                                            |       Other-than-temporary      impairment of auction        rate      securities |  -                          |   |  (60)                                  |   |  -  |   |  -  |   |  -  |   |
|                                            |       Fair      value of auction rate securities put right        received        |  -                          |   |  26                               |   |  -  |   |  -  |   |  -  |   |
|                                            |                                                                                                                                                    |                                  |   |                                        |   |   |   |   |   |   |   |
|                                            | Income      tax benefit (expense):                                                                                                                      |                                  |   |                                        |   |   |   |   |   |   |   |
|                                            |   Intraperiod      tax allocation                                                                                                             | 158                              |   | -                                      |   | -  |   | -  |   | -  |   |
|                                            |   NOL      utilization                                                                                                                        | -                                |   | 28                                     |   | (114) |   | -  |   | -  |   |
|                                            | Cumulative      effect of change in accounting  principal                                                                                     |       - |   |        - |   |       - |   |  (26) |   |       - |   |
|                                            | Total      special items – income (expense)                                                                                                       |   13                        |   | (234)                                       |   | (90) |   |    39 |   | 137 |   |
|                                            |                                                                                                                                                    |                                  |   |                                        |   |   |   |   |   |   |   |
|                                            | Net      income (loss) excluding special items –  non-GAAP                                                                              |  $(295)                          |   |  $(352)                                |   |  $529 |   |  $296 |   |  $(212) |   |

----

|                                                                                                                          | 2009                                                                                                             | 2008                                        | 2007                     | 2006               | 2005               |
|-------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------|---------------------------------------------|--------------------------|--------------------|--------------------|
|                                                                                                                          |                                                                                                             |                                        |                     |               |               |
| Mainline      cost per available seat mile excluding special  charges      and aircraft fuel and related taxes:     |                                                                                                             |
|                                                                                                                          | Operating      expenses – GAAP                                                                             | $10,471                                | $12,753             | $11,171       | $10,314       | $ 9,162  |
|                                                                                                                          | Special      charges:                                                                                            |                                        |                     |               |               |   |
|                                                                                                                          |                                                                                                             | Aircraft-related      charges               | (70)                     | (40)               | 22            | 18  | 16  |
|                                                                                                                          |                                                                                                             | Pension      settlement/curtailment charges | (29)                     | (52)               | (31)               | (59) | (83) |
|                                                                                                                          |                                                                                                             | Severance                                   | (5)                      | (34)               | -             | -  | -  |
|                                                                                                                          |                                                                                                             | Route      impairment                       | (12)                     | (18)               | -             | -  | -  |
|                                                                                                                          |                                                                                                             | Other                                       | (9)                      | (11)               | (4)                | 14  | -  |
|                                                                                                                          | Aircraft      fuel and related taxes                                                                             | (2,755)                                     | (4,905)                  | (3,354)            | (3,034)            | (2,443) |
|                                                                                                                          | Operating      expenses excluding above items  –  non-GAAP                             |  $ 7,591                          |  $  7,693 |  $ 7,804 |  $ 7,253 |  $ 6,652 |
|                                                                                                                          |                                                                                                             |                                        |                     |               |               |   |
|                                                                                                                          | Available      seat miles – mainline                                                                       | 97,407                                      | 102,527                  | 103,139            | 97,667             | 89,647 |
|                                                                                                                          |                                                                                                             |                                        |                     |               |               |   |
|                                                                                                                          | CASM      – GAAP (cents)                                                                                   | 10.75                                       | 12.44                    | 10.83              | 10.56              | 10.22 |
|                                                                                                                          | CASM      excluding special charges and aircraft  fuel      and related taxes – non-GAAP (cents) |  7.79                             |  7.50          |  7.57    |  7.42    |  7.42  |
|                                                                                                                          |                                                                                                             |                                        |                     |               |               |   |
| Consolidated      cost per available seat mile excluding  special      charges and aircraft fuel and related taxes: |                                                                                                             |                                        |                     |               |               |
|                                                                                                                          | Operating      expenses – GAAP                                                                             | $12,732                                | $15,555             | $13,545       | $12,660       | $11,247  |
|                                                                                                                          | Special      charges:                                                                                            |                                        |                     |               |               |   |
|                                                                                                                          | Aircraft-related      charges                                                                                    | (89)                                        | (40)                     | 22            | 18            | 16  |
|                                                                                                                          | Pension      settlement/curtailment charges                                                                      | (29)                                        | (52)                     | (31)               | (59)               | (83) |
|                                                                                                                          | Severance                                                                                                        | (5)                                         | (34)                     | -             | -             | -  |
|                                                                                                                          | Route      impairment                                                                                            | (12)                                        | (18)                     | -             | -             | -  |
|                                                                                                                          | Other                                                                                                            | (10)                                        | (37)                     | (4)                | 14            | -  |
|                                                                                                                          | Aircraft      fuel and related taxes                                                                             | (3,317)                                     | (5,919)                  | (4,034)            | (3,697)            | (2,974) |
|                                                                                                                          | Operating      expenses excluding above items –  non-GAAP                                        |  $ 9,270                     |  $ 9,455       |  $ 9,498 |  $ 8,936 |  $ 8,206 |
|                                                                                                                          |                                                                                                             |                                        |                     |               |               |   |
|                                                                                                                          | Available      seat miles – consolidated                                                                   | 109,554                                     | 115,511                  | 115,738            | 110,918            | 101,620 |
|                                                                                                                          |                                                                                                             |                                        |                     |               |               |   |
|                                                                                                                          | CASM      – GAAP (cents)                                                                                   | 11.62                                       | 13.47                    | 11.70              | 11.41              | 11.07 |
|                                                                                                                          | CASM      excluding special charges and aircraft  fuel      and related taxes – non-GAAP (cents) |  8.46                             |  8.19          |  8.21    |  8.06    |  8.08  |

----

| ·  | Passenger      revenue decreased 18.9% during 2009 as compared to 2008, primarily due to      lower fares and less high-yield business traffic attributable to the      global recession.                                 |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                      |
| ·  | Operating      income (loss), a key measure of our performance, improved to a loss of      $146 million in 2009 compared to a $314 million loss in 2008, primarily      due to lower fuel prices offset by lower revenue. |
|         |                                                                                                                                                                                                                      |
| ·  | We      raised approximately $1.7 billion through the issuance of common stock,      enhanced equipment trust certificates and convertible debt and through      other new secured borrowings.                            |
|         |                                                                                                                                                                                                                      |
| ·  | Unrestricted      cash, cash equivalents and short-term investments totaled $2.9 billion at      December 31, 2009, as compared to $2.6 billion at December 31,      2008.                                                |

| ·  | We      joined Star Alliance on October 27, 2009.                                                                                                                                                                                                                                                                                                                    |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                                                                                                                                                                 |
| ·  | Consolidated      traffic decreased 3.8% and capacity decreased 5.2% during 2009 as compared      to 2008, resulting in a consolidated load factor of 81.4%, 1.2 points      higher than the prior year consolidated load factor.                                                                                                                                    |
|         |                                                                                                                                                                                                                                                                                                                                                                 |
| ·  | We      recorded a DOT on-time arrival rate of 78.8% for Continental mainline      flights and a mainline segment completion factor of 99.5% for 2009,      compared to a DOT on-time arrival rate of 74.0% and a mainline segment      completion factor of 98.9% for 2008.  We also operated 101 days      without a single mainline flightcancellation. |

----

|         |                                                                                                                                                                                                                                                                                                                |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·  | We      placed into service 13 new Boeing 737-900ER, one new Boeing 737-800 and      one leased Boeing 757-300 aircraft and removed 20 Boeing 737-300 and eight      Boeing 737-500 aircraft from our mainline fleet.  The average      age of our mainline fleet was nine years at December 31,    2009. |

----

----

----

|                                                                                         | Income      (Expense)                 |
|----------------------------------------------------------------------------------------------|---------------------------------------|
|                                                                                         | 2009                                  | 2008 | 2007 |
|                                                                                         |                                  |   |   |
| Operating      (expense) income:                                                             |                                  |   |   |
|     Aircraft-related      charges (1)                                    | $  (89)                     | $  (40) | $  22  |
|     Pension      settlement charges (2)                                  | (29)                                  |   (52) |  (31) |
|     Severance      (1)                                                   | (5)                                   | (34) | -  |
|     Route      impairment (3)                                            | (12)                                  | (18) | -  |
|     Other      (1)                                                       |   (10)                      |   (37) |    (4) |
|       Total      special charges classified as operating items | (145)                                 | (181) |  (13) |
|                                                                                         |                                  |   |   |
| Nonoperating      (expense) income:                                                          |                                  |   |   |
|   Gains      on sales of investments (4)                                           | -                                | 78  | 37  |
|   Loss      on fuel hedge contracts with Lehman Brothers (5)                       | -                                | (125) |       -  |
|   Other-than-temporary      impairment of auction rate securities (6)              | -                                | (60) | -  |
|   Fair      value of auction rate securities put right received (6)                |      -       |    26 |       - |
|     Total      special non-operating items                               |      -       |   (81) |    37 |
|                                                                                         |                                  |   |   |
| Income      tax benefit (expense):                                                           |                                  |   |   |
|   Intraperiod      tax allocation (7)                                              |  158                        | -  | -  |
|   NOL      utilization (7)                                                         |       - |     28 | (114) |
| Total      special items – income (expense)                                            | $   13                 | $(234) | $  (90) |

| (1) | See      Note 13 to our consolidated financial statements contained in Item 8 of      this report.       |
|-----|----------------------------------------------------------------------------------------------------------|
| (2) | See      Note 11 to our consolidated financial statements contained in Item 8 of      this report.       |
| (3) | See      Notes 1 and 2 to our consolidated financial statements contained in Item 8      of this report. |
| (4) | See      Note 14 to our consolidated financial statements contained in Item 8 of      this report.       |
| (5) | See      Note 7 to our consolidated financial statements contained in Item 8 of      this report.        |
| (6) | See      Note 6 to our consolidated financial statements contained in Item 8 of      this report.        |
| (7) | See      Note 12 to our consolidated financial statements contained in Item 8 of      this report.       |

----

|                               |                        | Increase | %      Increase             |
|------------------------------------|-----------------------------|----------|-----------------------------|
|                               | 2009                        | 2008     | (Decrease)                  | (Decrease) |
|                               |                        |     |                        |   |
| Operating      revenue             | $12,586                     |     | $15,241                     |   | $ (2,655) |   | (17.4)% |   |
| Operating      expenses            | 12,732                      |     | 15,555                      |   | (2,823) |   | (18.1)% |   |
| Operating      loss                | (146)                       |     | (314)                       |   | (168) |   | (53.5)% |   |
| Nonoperating      income (expense) | (293)                       |     | (381)                       |   | (88) |   | (23.1)% |   |
| Income      tax benefit            |     157 |     |     109 |   |       48 |   | 44.0      % |   |
| Net      loss                      | $  (282)          |     | $  (586)          |   | $   (304) |   | (51.9)% |   |

|                            |             Revenue          |                   %      Increase      (Decrease)                                             in       2009 vs      2008                            |
|---------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                            |       (in      millions)                                                  | Revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | RASM | ASMs |
|                            |                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |
| Passenger      revenue:         |                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |
|   Domestic            | $  4,581                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | (18.7)% |   | (12.6)% | (6.9)% |
|   Trans-Atlantic      | 2,249                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | (24.6)% |   | (17.2)% | (8.9)% |
|   Latin      America  | 1,483                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | (15.3)% |   | (16.0)% | 0.9 % |
|   Pacific             |      931                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | (8.4)% |   | (15.4)% | 8.5 % |
|   Total      Mainline | 9,244                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | (18.8)% |   | (14.5)% | (5.0)% |
|                            |                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |
|   Regional            |  1,894                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | (19.6)% |   | (14.0)% | (6.4)% |
|                            |                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |
|     Total   | 11,138                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | (18.9)% |   | (14.5)% | (5.2)% |
|                            |                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |
| Cargo                           | 366                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | (26.4)% |   |   |   |
| Other                           |   1,082                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 7.4 % |   |   |   |
|                            |                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |
| Operating      revenue          | $12,586                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | (17.4)% |   |   |   |

----

|                                    |    2009 |    2008 | Increase(Decrease)                 | %      Increase(Decrease) |
|-----------------------------------------|------------------------|------------------------|------------------------------------|---------------------------|
|                                    |                   |                   |                               |                      |
| Aircraft fuel and related      taxes    | $3,317                 | $ 5,919           | $(2,602)                           |                      | (44.0)% |   |
| Wages, salaries and related      costs  | 3,137                  | 2,957                  | 180                           |                      | 6.1 % |   |
| Aircraft rentals                        | 934                    | 976                    | (42)                               |                      | (4.3)% |   |
| Regional capacity purchase,      net    | 848                    | 1,059                  | (211)                              |                      | (19.9)% |   |
| Landing fees and other      rentals     | 841                    | 853                    | (12)                               |                      | (1.4)% |   |
| Distribution costs                      | 624                    | 717                    | (93)                               |                      | (13.0)% |   |
| Maintenance, materials and      repairs | 617                    | 612                    | 5                             |                      | 0.8      % |   |
| Depreciation and      amortization      | 494                    | 438                    | 56                            |                      | 12.8 % |   |
| Passenger services                      | 373                    | 406                    | (33)                               |                      | (8.1)% |   |
| Special charges                         | 145                    | 181                    | (36)                               |                      | NM     |   |
| Other                                   | 1,402                  |   1,437      |      (35) |                      | (2.4)% |   |
|                                    | $12,732                | $15,555                | $(2,823)                           |                      | (18.1)% |   |
|                                    |                   |                   |                               |                      |
| NM      – Not meaningful          |                   |                   |                               |                      |

| ·  | Aircraft fuel and      related taxes decreased due to a 39.8% decrease in consolidated jet      fuel prices and decreased flying.  Our average jet fuel price      per gallon including related taxes decreased to $1.97 in 2009 from $3.27      in 2008.  Our average jet fuel price includes losses related to      our fuel hedging program of $0.23 per gallon in 2009 compared to losses of      $0.10 per gallon in 2008. |
|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| ·  | Wages, salaries and      related costs increased primarily due to $155 million of higher      pension expense resulting primarily from lower returns on plan assets in      2008.  Higher wage rates and health insurance costs were offset      by a 5% reduction in the number of full-time equivalent      employees.                                                                                                                  |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                |

----

| ·  | Aircraft      rentals decreased due to the retirement of leased Boeing 737      aircraft in 2008 and 2009.  New aircraft delivered in 2008 and      2009 were purchased, with the related expense being reported in      depreciation and amortization and interest expense.                                                                                                                                 |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                                                                                                                                                                                                                   |
| ·  | Regional capacity      purchase, net, includes expenses related to our capacity purchase      agreements.  Our most significant capacity purchase agreement is      with ExpressJet.  We also have agreements with Chautauqua,      Colgan and CommutAir.  The net amounts consisted of the      following for the year ended December 31 (in millions, except percentage      changes): |

|   |                                 |                            |       | Increase          | %      Increase |
|--------|--------------------------------------|---------------------------------|------------|-------------------|-----------------|
|   | 2009                                 | 2008                            | (Decrease) | (Decrease)        |
|   |                                 |                            |       |              |
|   | Capacity      purchase expenses      | $848                            |       | $1,181       |            | $(333) |   | (28.2)% |   |
|   | Aircraft      sublease income        |      - |       |   (122) |            | (122) |   | (100.0)% |   |
|   | Regional      capacity purchase, net | $848                            |       | $1,059            |            | $(211) |   | (19.9)% |   |

|         | Capacity      purchase expenses decreased due to rate reductions in conjunction with our      amended capacity purchase agreement with ExpressJet effective July 1, 2008      and capacity reductions.  There was no aircraft sublease income      in 2009 because ExpressJet no longer pays sublease rent for aircraft      operated on our behalf.  Sublease income on aircraft that were      subleased to other operators, but not operated on our behalf, of $23      million and $76 million for 2009      and 2008, respectively, is recorded as other revenue.                                                           |
|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| ·  | Distribution      costs decreased due to lower credit card discount fees, booking      fees and travel agency commissions, all of which resulted from decreased      passenger revenue.                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| ·  | Depreciation and      amortization expense increased in 2009 due to higher capitalizable      project costs, acceleration of depreciation on exiting aircraft and      increased depreciation from new aircraft.                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| ·  | Passenger      services expenses decreased due to fewer meals and beverages in      2009 compared to 2008, resulting from the decreased demand for air travel      in the weak economy, and lower mishandled baggage  expenses.                                                                                                                                                                                                                                                                                                                                                                                                                           |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| ·  | Special      charges.  See Note 13 to our consolidated financial      statements contained in Item 8 of this report for a discussion of the      special charges.                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| ·  | Other operating      expenses decreased due to insurance settlements received in 2009      related to Hurricane Ike, reduced technology expenses resulting from new      contracts, lower expense due to station closings, the impact on certain      expenses of more favorable foreign currency exchange rates, lower OnePass      reward expenses and lower ground handling, security and outside services      costs as a result of capacity reductions, partially offset by increases in      expenses resulting from changes in who is contractually responsible for      certain costs under our capacity purchase agreement with      ExpressJet. |

----

| ·  | Net interest      expense increased $44 million primarily as a result of lower      interest income.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| ·  | Gain on sale of      investments in 2008 consisted of $78 million related to the sale of      our remaining interests in Copa.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| ·  | Other-than-temporary      impairment losses on investments  included a loss of $60      million in 2008 to reflect the decline in the value of our student      loan-related auction rate securities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| ·  | Other nonoperating      income (expense) included fuel hedge ineffectiveness gains of $7      million and $26 million in 2009      and 2008, respectively.  The ineffectiveness was caused by our      non-jet fuel derivatives experiencing a higher relative increase in value      than the jet fuel being hedged.  Other nonoperating income      (expense) in 2009 also included foreign exchange gains of $8 million,      compared to losses of $37 million in 2008, and an increase in the fair      value of the cash surrender value of company-owned life insurance      policies.  Additionally, other nonoperating income (expense) in      2008 included $125 million expense related to changes in the fair value of      fuel derivative contracts with Lehman Brothers that were deemed      ineffective after Lehman Brothers declared bankruptcy and a gain of $26      million related to our receipt of a put right covering certain of the      student loan-related auction ratesecurities. |

----

|                                                |    2009       |    2008 | Increase  (Decrease)          | %      Increase(Decrease) |
|-----------------------------------------------------|------------------------------|------------------------|-----------------------------------------|---------------------------|
|                                                |                         |                   |                                    |                      |
| Operating      revenue                              | $10,635                      |                   | $12,827                                 |                      | $(2,192) |   | (17.1)% |   |
|                                                |                         |                   |                                    |                      |   |   |   |   |
| Operating      expenses:                            |                         |                   |                                    |                      |   |   |   |   |
|   Aircraft      fuel and related taxes    | 2,755                        |                   | 4,905                                   |                      | (2,150) |   | (43.8)% |   |
|   Wages,      salaries and related costs  | 2,968                        |                   | 2,850                                   |                      | 118  |   | 4.1      % |   |
|   Aircraft      rentals                   | 621                          |                   | 662                                     |                      | (41) |   | (6.2)% |   |
|   Landing      fees and other rentals     | 741                          |                   | 782                                     |                      | (41) |   | (5.2)% |   |
|   Distribution      costs                 | 534                          |                   | 611                                     |                      | (77) |   | (12.6)% |   |
|   Maintenance,      materials and repairs | 617                          |                   | 612                                     |                      | 5  |   | 0.8 % |   |
|   Depreciation      and amortization      | 481                          |                   | 427                                     |                      | 54  |   | 12.6 % |   |
|   Passenger      services                 | 349                          |                   | 384                                     |                      | (35) |   | (9.1)% |   |
|   Special      charges                    | 125                          |                   | 155                                     |                      | (30) |   | NM     |   |
|   Other                                   |   1,280            |                   |   1,365                       |                      |      (85) |   | (6.2)% |   |
|                                                | 10,471                       |                   | 12,753                                  |                      | (2,282) |   | (17.9)% |   |
|                                                |                         |                   |                                    |                      |   |   |   |   |
| Operating      income                               | $    164 |                   | $      74 |                      | $       90 |   | 121.6 % |   |

----

|                                               |                  | Increase | %      Increase                  |
|----------------------------------------------------|-----------------------|----------|----------------------------------|
|                                               | 2009                  | 2008     | (Decrease)                       | (Decrease) |
|                                               |                  |     |                             |   |
| Operating      revenue                             | $1,951                |     | $2,414                           |   | $(463) |   | (19.2)% |   |
|                                               |                  |     |                             |   |   |   |   |   |
| Operating      expenses:                           |                  |     |                             |   |   |   |   |   |
|   Aircraft      fuel and related taxes   | 562              |     | 1,014                       |   | (452) |   | (44.6)% |   |
|   Wages,      salaries and related costs | 169              |     | 107                         |   | 62  |   | 57.9 % |   |
|   Aircraft      rentals                  | 313              |     | 314                         |   | (1) |   | (0.3)% |   |
|   Regional      capacity purchase, net   | 848              |     | 1,059                       |   | (211) |   | (19.9)% |   |
|   Landing      fees and other rentals    | 100              |     | 71                          |   | 29  |   | 40.8 % |   |
|   Distribution      costs                | 90               |     | 106                         |   | (16) |   | (15.1)% |   |
|   Depreciation      and amortization     | 13               |     | 11                          |   | 2  |   | 18.2 % |   |
|   Passenger      services                | 24               |     | 22                          |   | 2  |   | 9.1 % |   |
|   Special      charges                   | 20               |     | 26                          |   | (6) |   | NM     |   |
|   Other                                  |    122 |     |      72 |   |         50 |   | 69.4 % |   |
|                                               | 2,261                 |     | 2,802                            |   | (541) |   | (19.3)% |   |
|                                               |                  |     |                             |   |   |   |   |   |
| Operating      loss                                | $  (310)    |     | $(388)                           |   | $  (78) |   | (20.1)% |   |

----

|                               |                        | Increase | %      Increase        |
|------------------------------------|-----------------------------|----------|------------------------|
|                               | 2008                        | 2007     | (Decrease)             | (Decrease) |
|                               |                        |     |                   |   |
| Operating      revenue             | $15,241                |     | $14,232           |   | $ 1,009  |   | 7.1% |   |
| Operating      expenses            | 15,555                      |     | 13,545            |   |  2,010 |   | 14.8% |   |
| Operating      income (loss)       | (314)                       |     | 687               |   | (1,001) |   | NM     |   |
| Nonoperating      income (expense) | (381)                       |     | (131)                  |   | 250  |   | NM     |   |
| Income      tax benefit (expense)  |     109 |     |   (117)      |   |     226 |   | NM     |   |
|                               |                        |     |                   |   |   |   |   |   |
| Net      income (loss)             | $  (586)          |     | $   439 |   | $(1,025) |   | NM     |   |

|                            |             Revenue          |                   %      Increase      (Decrease)                               in       2008 vs      2007                       |
|---------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                            |       (in      millions)                                                  | Revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | RASM | ASMs |
|                            |                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |
| Passenger      revenue:         |                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |
|   Domestic            | $  5,633                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 1.2 % |   | 6.4 % | (4.9)% |
|   Trans-Atlantic      | 2,983                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 11.6 % |   | 2.5 % | 8.9 % |
|   Latin      America  | 1,750                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 12.1 % |   | 9.4 % | 2.5 % |
|   Pacific             |   1,016                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 2.3 % |   | 8.5 % | (5.6)% |
|   Total      Mainline | 11,382                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 5.4 % |   | 6.0 % | (0.6)% |
|                            |                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |
|   Regional            |  2,355                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 7.0 % |   | 3.8 % | 3.1 % |
|                            |                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |
|     Total   | 13,737                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 5.7 % |   | 5.9 % | (0.2)% |
|                            |                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |
| Cargo                           | 497                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 9.7 % |   |   |   |
| Other                           |   1,007                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 28.4 % |   |   |   |
|                            |                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |
| Operating      revenue          | $15,241                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 7.1 % |   |   |   |

----

|                                    |    2008 |    2007 | Increase(Decrease)               | %      Increase(Decrease) |
|-----------------------------------------|------------------------|------------------------|----------------------------------|---------------------------|
|                                    |                   |                   |                             |                      |
| Aircraft fuel and related      taxes    | $ 5,919           | $ 4,034           | $1,885                      |                      | 46.7 % |   |
| Wages, salaries and related      costs  | 2,957                  | 3,127                  | (170)                            |                      | (5.4)% |   |
| Aircraft rentals                        | 976                    | 994                    | (18)                             |                      | (1.8)% |   |
| Regional capacity purchase,      net    | 1,059                  | 1,113                  | (54)                             |                      | (4.9)% |   |
| Landing fees and other      rentals     | 853                    | 790                    | 63                          |                      | 8.0 % |   |
| Distribution costs                      | 717                    | 682                    | 35                          |                      | 5.1 % |   |
| Maintenance, materials and      repairs | 612                    | 621                    | (9)                              |                      | (1.4)% |   |
| Depreciation and      amortization      | 438                    | 413                    | 25                          |                      | 6.1 % |   |
| Passenger services                      | 406                    | 389                    | 17                          |                      | 4.4 % |   |
| Special charges                         | 181                    | 13                     | 168                         |                      | NM    |   |
| Other                                   |   1,437      |   1,369      |      68 |                      | 5.0 % |   |
|                                    | $15,555                | $13,545                | $2,010                           |                      | 14.8 % |   |

| ·  | Aircraft fuel and      related taxes increased due to a 50.0% increase in jet fuel      prices.  Our average jet fuel price per gallon including related      taxes increased to $3.27 in 2008 from $2.18 in 2007.  Our      average jet fuel price includes losses related to our fuel hedging program      of $0.10 per gallon in 2008, compared to gains of $0.02 per gallon in      2007. |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                                                                                                                                                                                                              |
| ·  | Wages, salaries and      related costs decreased primarily due to a $172 million decrease in      profit sharing expenses.  Although the average number of full      time equivalent employees decreased approximately 1% in 2008, the impact      on expenses was offset by wage increases.                                                                                                            |
|         |                                                                                                                                                                                                                                                                                                                                                                                                              |
| ·  | Aircraft      rentals decreased due to the retirement of several Boeing 737      aircraft.  New aircraft delivered in 2008 were all purchased,      with the related expense being reflected in depreciation and      amortization.                                                                                                                                                                     |
|         |                                                                                                                                                                                                                                                                                                                                                                                                              |

----

| ·  | Regional capacity      purchase, net includes expenses related to our capacity purchase      agreements.  Our most significant capacity purchase agreement is      with ExpressJet.  Regional capacity purchase, net is net of our      rental income on aircraft leased to ExpressJet and flown for us in 2007      and the first six months of 2008.  Under the ExpressJet CPA,      ExpressJet no longer pays sublease rent for aircraft operated on our      behalf.  The net amounts consisted of the following for the year      ended December 31 (in millions, except percentage  changes): |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|         |                                                                                                                                                                                                                                                                                                                                                   |              |   | Increase          | %      Increase |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------|--------|-------------------|-----------------|
|         |                                                                                                                                                                                                                                                                                                                                                   | 2008              | 2007   | (Decrease)        | (Decrease)      |
|         |                                                                                                                                                                                                                                                                                                                                                   |              |   |              |            |
|         | Capacity      purchase expenses                                                                                                                                                                                                                                                                                                                        | $1,181       |   | $1,379       |            | $(198) |   | (14.4)% |   |
|         | Aircraft      sublease income                                                                                                                                                                                                                                                                                                                          |   (122) |   |   (266) |            | (144) |   | (54.1)% |   |
|         | Regional      capacity purchase, net                                                                                                                                                                                                                                                                                                                   | $1,059            |   | $1,113            |            | $ (54) |   | (4.9)% |   |
|         |                                                                                                                                                                                                                                                                                                                                                   |              |   |              |            |   |   |   |   |
|         | Regional      capacity purchase, net did not change significantly compared to      2007.  Sublease income on aircraft that were subleased to other      operators, but not operated on our behalf, of $76 million and $79 million      for 2008 and 2007, respectively, is recorded as other    revenue.                                     |
|         |                                                                                                                                                                                                                                                                                                                                                   |
| ·  | Landing fees and other      rentals increased primarily due to a higher number of international      flights and rate increases.                                                                                                                                                                                                                       |
|         |                                                                                                                                                                                                                                                                                                                                                   |
| ·  | Distribution      costs, which consist primarily of reservation booking fees, credit      card fees and commissions, increased due to a 5.7% increase in passenger      revenue.                                                                                                                                                                       |
|         |                                                                                                                                                                                                                                                                                                                                                   |
| ·  | Other operating      expenses increased primarily due to a greater number of      international flights, which resulted in increased air navigation fees and      ground handling, security and related expenses, changes in who is      contractually responsible for certain costs under the ExpressJet CPA and      higher OnePass reward expenses. |
|         |                                                                                                                                                                                                                                                                                                                                                   |
| ·  | Special      charges.  See Note 13 to our consolidated financial      statements contained in Item 8 of this report for a discussion of the      special charges.                                                                                                                                                                            |

| ·  | Net interest      expense increased $72 million primarily due to lower interest      income resulting from lower interest rates on investments and lower cash,      cash equivalents and short-term investments balances.                                                                                                                                      |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                                                                                                                                                           |
| ·  | Gain on sale of      investments of $78 million in 2008 related to the sale of our      remaining interests in Copa.  Gain on      sale of investments in 2007 consisted of $30 million related to the sale      of our interest in ARINC, Inc. (“ARINC”) and $7 million related to the      sale of our remaining interest in Holdings. |
|         |                                                                                                                                                                                                                                                                                                                                                           |

----

| ·  | Other-than-temporary      impairment losses on investments  included a loss of $60      million in 2008 to reflect the decline in the value of our student      loan-related auction rate securities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| ·  | Other nonoperating      income (expense) included $125 million expense related to changes      in the fair value of fuel derivative contracts with Lehman Brothers that      were deemed ineffective after Lehman Brothers declared bankruptcy in      2008.  This account also includes other fuel hedge      ineffectiveness gains of $26 million and $14 million in 2008 and 2007,      respectively, caused by our non-jet fuel derivatives experiencing a higher      relative change in value than the jet fuel being hedged.  Other      nonoperating income expense in 2008 also includes a gain of $26 million      related to our receipt of a put right covering certain of the student      loan-related auction rate securities. Other      variances in other nonoperating income (expense) include $37 million of      foreign currency exchange losses in 2008 compared to gains of $2 million      in 2007, a $16 million increase in the fair value of the cash surrender      value of company owned life insurance policies in 2008 compared to a $3      million increase in 2007 and $6 million less equity in earnings of other      companies in 2008 compared to 2007 resulting from our decreased ownership      of Copa and Holdings. |

----

|                                                |    2008                  |    2007 | Increase  (Decrease) | %      Increase(Decrease) |
|-----------------------------------------------------|-----------------------------------------|------------------------|--------------------------------|---------------------------|
|                                                |                                    |                   |                           |                      |
| Operating      revenue                              | $12,827                                 |                   | $12,019                        |                      | $   808  |   | 6.7 % |   |
|                                                |                                    |                   |                           |                      |   |   |   |   |
| Operating      expenses:                            |                                    |                   |                           |                      |   |   |   |   |
|   Aircraft      fuel and related taxes    | 4,905                                   |                   | 3,354                          |                      | 1,551  |   | 46.2 % |   |
|   Wages,      salaries and related costs  | 2,850                                   |                   | 3,073                          |                      | (223) |   | (7.3)% |   |
|   Aircraft      rentals                   | 662                                     |                   | 680                            |                      | (18) |   | (2.6)% |   |
|   Landing      fees and other rentals     | 782                                     |                   | 738                            |                      | 44  |   | 6.0 % |   |
|   Distribution      costs                 | 611                                     |                   | 583                            |                      | 28  |   | 4.8 % |   |
|   Maintenance,      materials and repairs | 612                                     |                   | 621                            |                      | (9) |   | (1.4)% |   |
|   Depreciation      and amortization      | 427                                     |                   | 400                            |                      | 27  |   | 6.8 % |   |
|   Passenger      services                 | 384                                     |                   | 374                            |                      | 10  |   | 2.7 % |   |
|   Special      charges                    | 155                                     |                   | 13                             |                      | 142  |   | NM    |   |
|   Other                                   |   1,365                       |                   |   1,335              |                      |      30 |   | 2.2 % |   |
|                                                | 12,753                                  |                   | 11,171                         |                      | 1,582 |   | 14.2 % |   |
|                                                |                                    |                   |                           |                      |   |   |   |   |
| Operating      income                               | $      74 |                   | $   848         |                      | $(774) |   | (91.3)% |   |

----

|                                               |                                   | Increase | %      Increase                        |
|----------------------------------------------------|----------------------------------------|----------|----------------------------------------|
|                                               | 2008                                   | 2007     | (Decrease)                             | (Decrease) |
|                                               |                                   |     |                                   |   |
| Operating      revenue                             | $2,414                                 |     | $2,213                                 |   | $  201 |   | 9.1 % |   |
|                                               |                                   |     |                                   |   |   |   |   |   |
| Operating      expenses:                           |                                   |     |                                   |   |   |   |   |   |
|   Aircraft      fuel and related taxes   | 1,014                             |     | 680                               |   | 334  |   | 49.1 % |   |
|   Wages,      salaries and related costs | 107                               |     | 54                                |   | 53  |   | 98.1 % |   |
|   Aircraft      rentals                  | 314                               |     | 314                               |   | -  |   | -      |   |
|   Regional      capacity purchase, net   | 1,059                             |     | 1,113                             |   | (54) |   | (4.9)% |   |
|   Landing      fees and other rentals    | 71                                |     | 52                                |   | 19  |   | 36.5      % |   |
|   Distribution      costs                | 106                               |     | 99                                |   | 7  |   | 7.1 % |   |
|   Depreciation      and amortization     | 11                                |     | 13                                |   | (2) |   | (15.4)% |   |
|   Passenger      services                | 22                                |     | 15                                |   | 7  |   | 46.7 % |   |
|   Special      charges                   | 26                                |     | -                                 |   | 26  |   | NM     |   |
|   Other                                  |      72  |     |      34  |   |     38  |   | NM     |   |
|                                               | 2,802                             |     | 2,374                             |   |   428  |   | 18.0 % |   |
|                                               |                                   |     |                                   |   |   |   |   |   |
| Operating      loss                                | $(388)                                 |     | $(161)                                 |   | $(227) |   | NM     |   |

----

|                                                                                                     |                        | Cash     |
|----------------------------------------------------------------------------------------------------------|-----------------------------|----------|
|                                                                                                     |                        | Increase |
|                                                                                                     | 2009                        | 2008     | (Decrease) |
|                                                                                                     |                        |     |   |
| Capital      expenditures                                                                                | $(381)                      |     | $(373) |   | $    (8) |   |
| Aircraft      purchase deposits refunded (paid), net                                                     | 29                     |     | 102  |   | (73) |   |
| (Purchase)      sale of short-term investments, net                                                      | 180                    |     | 115  |   | 65  |   |
| Proceeds      from sales of investments, net                                                             | 30                     |     | 171  |   | (141) |   |
| Expenditures      for airport operating rights                                                           | (22)                        |     | (131) |   | 109  |   |
| Proceeds      from sales of property and equipment                                                       | 64                     |     | 113  |   | (49) |   |
| Decrease      (increase) in restricted cash, cash equivalents  and      short-term investments |  26               |     |  (13) |   |  39  |   |
| Other      cash flows from investing activities                                                          |     (4) |     |      - |   |     (4) |   |
| Net      cash used in investing activities                                                               | $ (78)                 |     | $  (16) |   | $ (62) |   |

----

| Fleet      related (excluding aircraft to be acquired through the issuance of      debt) | $265           |
|------------------------------------------------------------------------------------------|----------------|
| Non-fleet                                                                                | 140            |
|   Net      capital expenditures                                                | $405           |
| Aircraft      purchase deposits                                                          |   25 |
|   Projected      net capital expenditures                                      | $430           |

----

|                                                                |                  | Cash     |
|---------------------------------------------------------------------|-----------------------|----------|
|                                                                |                  | Increase |
|                                                                | 2009                  | 2008     | (Decrease) |
|                                                                |                  |     |   |
| Payments      on long-term debt and capital lease obligations       | $(610)                |     | $(641) |   | $   31  |   |
| Proceeds      from issuance of long-term debt, net                  | 538              |     | 642  |   | (104) |   |
| Proceeds      from public offering of common stock, net             | 158              |     | 358  |   | (200) |   |
| Proceeds      from issuance of common stock pursuant to stock plans |    11  |     |    18 |   |     (7) |   |
| Net      cash provided by financing activities                      | $   97 |     | $ 377 |   | $(280) |   |

----

----

|  Contractual      Obligations                               | Payments      Due  | Later   Years  |
|------------------------------------------------------------------|--------------------|------------------------------------|
| Total                                                            |  2010    |  2011                    |  2012  |  2013  |  2014  |
|                                                             |               |                               |   |   |   |   |   |
| Long-term      debt (1)                                          | $       7,632 | $1,254                             | $ 1,380 | $   767 | $   811 | $   474 | $2,946 |
| Capital      lease obligations (1)                          | 466                | 17                                 | 16 | 16 | 16 | 16 | 385 |
| Aircraft      operating leases (2)                               | 8,145              | 994                                | 977 | 948 | 933 | 904 | 3,389 |
| Nonaircraft      operating leases (3)                            | 5,830              | 462                                | 426 | 513 | 376 | 359 | 3,694 |
| Capacity      purchase agreements (4)                            | 4,306              | 693                                | 693 | 704 | 683 | 649 | 884 |
| Aircraft      and other purchase  commitments      (5) |  5,393        |  712                          |  855 |  646 |  723 |  903 |  1,554 |
| Projected      pension contributions (6)                         |   1,393  |     119        |     132 |     179 |     161 |     160 |        642 |
|                                                             |               |                               |   |   |   |   |   |
| Total      (7)                                                   | $33,165            | $4,251                             | $4,479 | $3,773 | $3,703 | $3,465 | $13,494 |

----

| (1) | Represents      contractual amounts due, including interest.  Interest on      floating rate debt was estimated using rates in effect at December 31,      2009.                                                                                                                                                                                                                                                                                                                                                                                                   |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Represents      contractual amounts due and excludes $139 million of projected sublease      income to be received on aircraft that are subleased to other operators,      but not operated on our behalf.                                                                                                                                                                                                                                                                                                                                                                   |
| (3) | Represents      minimum contractual amounts.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (4) | Represents      our estimates of future minimum noncancelable commitments under our      capacity purchase agreements and does not include the portion of the      underlying obligations for aircraft leased to ExpressJet or deemed to be      leased from Chautauqua, CommutAir or Colgan and facility rent that is      disclosed as part of aircraft and nonaircraft operating      leases.  See Note 16 to our consolidated financial statements      contained in Item 8 of this report for the significant assumptions used to      estimate the payments. |
| (5) | Represents      contractual commitments for firm order aircraft and spare engines only,      net of previously paid purchase deposits, and noncancelable commitments to      purchase goods and services, primarily information technology      support.  See Note 19 to our consolidated financial statements      contained in Item 8 of this report for a discussion of our purchase      commitments.                                                                                                                                                          |
| (6) | Represents      our estimate of the minimum funding requirements as determined by      government regulations.  Amounts are subject to change based on      numerous assumptions, including the performance of the assets in the plan      and bond rates.  See “Critical Accounting Policies and      Estimates” in this Item for a discussion of our assumptions regarding our      pension plans.                                                                                                                                         |
| (7) |         Total contractual obligations do not include long-term contracts where the      commitment is variable in nature, such as credit card processing      agreements and cost-per-hour        engine maintenance agreements, or where short-term cancellation      provisions exist.                                                                                                                                                                                                                                                                 |

| Long-term      debt and related covenants                                                                                                  | Note      4        |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------------------|
| Operating      Leases                                                                                                                      | Note      5        |
| Investment      in student loan-related auction rate securities                                                                            | Note      6        |
| Fuel      hedges                                                                                                                           | Note      7        |
| Pension      obligations                                                                                                                   | Note      11       |
| Regional      capacity purchase agreements                                                                                                 | Note      16       |
| Guarantees      and Indemnifications, credit card processing agreements, credit      ratings  and      environmental liabilities |  Note      19 |

----

----

|                                     |  Percent of      Total            | Expected      Long-Term      Rate      of Return      |
|------------------------------------------|----------------------------------------|--------------------------------------------------------------------------------------------------------------|
|                                     |                                   |                                                                                                         |
| Equity      securities:                  |                                   |                                                                                                         |
|   U.S.      companies          | 48%                                    |                                                                                                         | 8% |   |
|   International      companies | 21                      |                                                                                                         | 9    |   |
| Fixed-income      securities             | 21                      |                                                                                                         | 5    |   |
| Private      equity funds                |    10    |                                                                                                         | 11    |   |

----

----

----

|   | Level      1: | Observable      inputs such as quoted prices for identical assets or liabilities in active      markets                                                                                                |
|--------|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Level      2: | Other      inputs that are observable directly or indirectly, such as quoted prices      for similar assets or liabilities or market-corroborated      inputs                                          |
|   | Level      3: | Unobservable      inputs for which there is little or no market data and which require us to      develop our own assumptions about how market participants would price the      assets or liabilities |

|                         | Fair      Value | Par      Value | Amortized      Cost |
|------------------------------|-----------------|----------------|---------------------|
|                         |            |           |                |
| Short-term      investments: |            |           |                |
| Available-for-sale           | $136            |           | $166                |   | $136 |   |
| Trading                      |   65  |           |   86      |   | N/A |   |
| Total                        | $201            |           | $252                |   |   |   |

----

----

----

----

----

|                                | Maximum      Price              | Minimum      Price                          |
|-------------------------------------|---------------------------------|---------------------------------------------|
|                                | %      ofExpectedConsumption    | WeightedAverage      Price(per      gallon) | %      ofExpectedConsumption | WeightedAverage      Price(per      gallon) |
|                                |                            |                                        |   |   |
| Gulf      Coast jet fuel swaps      | 1%                              |                                        | $1.94 |   | 1% |   | $1.94 |   |
| WTI      crude oil swaps            |   2    |                                        | 1.84 |   | 2    |   | 1.84 |   |
| WTI      crude oil call options     |  4          |                                        | 2.20 |   | N/A    |   | N/A |   |
|      Total |  7%                        |                                        |   |   |     3% |   |   |   |

| · | 36%      of our projected Japanese yen-denominated cash inflows in    2009 |
|--------|----------------------------------------------------------------------------|
| · | 6%      of our projected euro-denominated cash inflows in  2009            |

----

----

----

|                                                                                                                          | Year      Ended December 31,                 |
|-------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------|
|                                                                                                                          | 2009                                         | 2008 | 2007 |
|                                                                                                                          |                                         |   |   |
| Operating      Revenue:                                                                                                       |                                         |   |   |
| Passenger (excluding fees and      taxes of $1,476, $1,531 and $1,499,       respectively) |  $11,138                                |  $13,737 |  $12,995 |
| Cargo                                                                                                                         | 366                                          | 497 | 453 |
| Other                                                                                                                         |  1,082                                  | 1,007 |      784 |
| Total Operating      Revenue                                                                                                  | 12,586                                       | 15,241 | 14,232 |
| Operating      Expenses:                                                                                                      |                                         |   |   |
| Aircraft fuel and related      taxes                                                                                          | 3,317                                        | 5,919 | 4,034 |
| Wages, salaries and related      costs                                                                                        | 3,137                                        | 2,957 | 3,127 |
| Aircraftrentals                                                                                                               | 934                                          | 976 | 994 |
| Regional capacity purchase,      net                                                                                          | 848                                          | 1,059 | 1,113 |
| Landing fees and other      rentals                                                                                           | 841                                          | 853 | 790 |
| Distribution    costs                                                                                                         | 624                                          | 717 | 682 |
| Maintenance, materials and      repairs                                                                                       | 617                                          | 612 | 621 |
| Depreciation and      amortization                                                                                            | 494                                          |  438 | 413 |
| Passenger    services                                                                                                         | 373                                          | 406 | 389 |
| Special charges                                                                                                               | 145                                          | 181 | 13 |
| Other                                                                                                                         |  1,402                                  |   1,437 |   1,369 |
| Total Operating      Expenses                                                                                                 | 12,732                                       | 15,555 | 13,545 |
|                                                                                                                          |                                         |   |   |
| Operating      Income (Loss)                                                                                                  |   (146)                            |   (314) |     687 |
|                                                                                                                          |                                         |   |   |
| Nonoperating      Income (Expense):                                                                                           |                                         |   |   |
| Interestexpense                                                                                                               | (367)                                        | (376) | (393) |
| Interest      capitalized                                                                                                     | 33                                           | 33 | 27 |
| Interest income                                                                                                               | 12                                           | 65 | 160 |
| Gains on sale of      investments                                                                                             | -                                            | 78 | 37 |
| Other-than-temporary impairment      losses on investments                                                                    | -                                            | (60) | - |
| Other, net                                                                                                                    |        29 |  (121) |      38 |
| Total Nonoperating Income      (Expense)                                                                                      |    (293)                      |  (381) |   (131) |
|                                                                                                                          |                                         |   |   |
| Income      (Loss) before Income Taxes                                                                                        | (439)                                        | (695) | 556 |
|                                                                                                                          |                                         |   |   |
| Income      Tax Benefit (Expense)                                                                                             |     157                  |          109 |  (117) |
|                                                                                                                          |                                         |   |   |
| Net      Income (Loss)                                                                                                        | $ (282)                                 | $ (586) | $  439 |

----

|                              | Year      Ended December 31, |
|-----------------------------------|------------------------------|
|                              | 2009                         | 2008 | 2007 |
| Earnings      (Loss) per Share:   |                         |   |   |
|   Basic                 | $(2.18)                      | $(5.54) | $4.53 |
|   Diluted               | $(2.18)                      | $(5.54) | $4.05 |
|                              |                         |   |   |
| Shares      Used for Computation: |                         |   |   |
| Basic                             | 129                     | 106  | 97  |
| Diluted                           | 129                     | 106  | 114  |

----

|                                                                                                            | December      31,                            |
|-----------------------------------------------------------------------------------------------------------------|----------------------------------------------|
| ASSETS                                                                                                          | 2009                                         | 2008 |
|                                                                                                            |                                         |   |
| Current      Assets:                                                                                            |                                         |   |
| Cash and cash      equivalents                                                                                  | $ 2,546                                 |   | $ 2,165 |   |
| Short-term    investments                                                                                       |      310            |   |     478 |   |
| Total unrestricted cash, cash      equivalents and short-term investments                                       | 2,856                                        |   | 2,643 |   |
|                                                                                                            |                                         |   |   |   |
| Restricted cash, cash equivalents      and short-term investments                                               | 164                                          |   | 190 |   |
| Accounts receivable, net of      allowance for doubtful receivables of $7 and $7                                | 494                                          |   | 453 |   |
| Spare parts and supplies, net of      allowance for obsolescence of $113 and $102                               | 254                                          |   | 235 |   |
| Deferred income    taxes                                                                                        | 203                                          |   | 216 |   |
| Prepayments and    other                                                                                        |      402            |   |      610 |   |
| Total current    assets                                                                                         |   4,373                            |   |   4,347 |   |
|                                                                                                            |                                         |   |   |   |
| Property      and Equipment:                                                                                    |                                         |   |   |   |
| Owned property and      equipment:                                                                              |                                         |   |   |   |
| Flight equipment                                                                                                | 8,769                                        |   | 8,446 |   |
| Other                                                                                                           |   1,787                            |   |   1,694 |   |
| Flight equipment and      other                                                                                 | 10,556                                       |   | 10,140 |   |
| Less:  Accumulated      depreciation                                                                  |   3,509                            |   |   3,229 |   |
| Owned property and equipment,      net                                                                          |   7,047                            |   |   6,911 |   |
|                                                                                                            |                                         |   |   |   |
| Purchase deposits for flight      equipment                                                                     |     242                  |   |      275 |   |
|                                                                                                            |                                         |   |   |   |
| Capital leases                                                                                                  | 194                                          |   | 194 |   |
| Less:  Accumulated      amortization                                                                  |        63 |   |        53 |   |
| Capital leases,    net                                                                                          |      131            |   |      141 |   |
|   Total property and      equipment, net                                                              |   7,420                            |   |   7,327 |   |
|                                                                                                            |                                         |   |   |   |
| Routes      and airport operating rights, net of accumulated amortization of      $389  and      $375 |  778                                    |   |  804 |   |
| Other      assets, net                                                                                          |      210            |   |    208 |   |
|                                                                                                            |                                         |   |   |   |
|       Total      Assets                                                           | $12,781                                      |   | $12,686 |   |

----

|                                                                                                                               | December      31,                       |
|------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------|
| LIABILITIES      AND STOCKHOLDERS' EQUITY                                                                                          | 2009                                    | 2008 |
|                                                                                                                               |                                    |   |
| Current      Liabilities:                                                                                                          |                                    |   |
| Current maturities of long-term      debt and capital leases                                                                       | $     975      |   | $   519 |   |
| Accounts payable                                                                                                                   | 924                                     |   | 1,021 |   |
| Air traffic and frequent flyer      liability                                                                                      | 1,855                                   |   | 1,881 |   |
| Accrued payroll                                                                                                                    | 367                                     |   | 345 |   |
| Accrued other      liabilities                                                                                                     |      268       |   |     708 |   |
| Total current      liabilities                                                                                                     |  4,389                             |   |  4,474 |   |
|                                                                                                                               |                                    |   |   |   |
| Long-Term      Debt and Capital Leases                                                                                             | 5,291                                   |   |  5,353 |   |
|                                                                                                                               |                                    |   |   |   |
| Deferred      Income Taxes                                                                                                         | 203                                     |   | 216 |   |
|                                                                                                                               |                                    |   |   |   |
| Accrued      Pension Liability                                                                                                     | 1,248                                   |   |    1,417 |   |
|                                                                                                                               |                                    |   |   |   |
| Accrued      Retiree Medical Benefits                                                                                              | 216                                     |   |    234 |   |
|                                                                                                                               |                                    |   |   |   |
| Other      Liabilities                                                                                                             | 844                                     |   |    869 |   |
|                                                                                                                               |                                    |   |   |   |
| Commitments      and Contingencies                                                                                                 |                                    |   |   |   |
|                                                                                                                               |                                    |   |   |   |
| Stockholders'      Equity:                                                                                                         |                                    |   |   |   |
| Class B common stock - $.01 par,      400,000,000 shares authorized;138,537,127 and 123,264,534      shares issued and outstanding |  1                                 |   |  1 |   |
| Additional paid-in      capital                                                                                                    | 2,216                              |   | 2,038 |   |
| Accumulateddeficit                                                                                                                 | (442)                                   |   | (160) |   |
| Accumulated other comprehensive      loss                                                                                          | (1,185)                                 |   |  (1,756) |   |
|   Total stockholders'      equity                                                                                        |       590 |   |      123 |   |
|          Total      Liabilities and Stockholders' Equity                              | $12,781                                 |   | $12,686 |   |

----

|                                                                                                          | Year      Ended December 31,           |
|---------------------------------------------------------------------------------------------------------------|----------------------------------------|
|                                                                                                          | 2009                                   | 2008 | 2007 |
| Cash      Flows from Operating Activities:                                                                    |                                   |   |   |
| Net income    (loss)                                                                                          | $ (282)                           | $ (586) | $  439  |
| Adjustments to reconcile net      income (loss) to net cash provided by  operating      activities: |                                   |   |   |
| Depreciation and      amortization                                                                            | 494                               | 438  | 413  |
| Special charges                                                                                               | 145                               | 181  | 13  |
| Deferred income tax (benefit)      expense                                                                    | (158)                                  | (111) | 111  |
| Gains on sale of      investments                                                                             | -                                 | (78) | (37) |
| Loss on fuel hedge contracts      with Lehman Brothers                                                        | -                                 | 125  | -  |
| Other-than-temporary losses on      investments                                                               | -                                 | 60  | -  |
| Stock-based compensation      related to equity awards                                                        | 9                                 | 16  | 27  |
| Other adjustments,      net                                                                                   | 55                                | (14) | 50  |
| Changes in operating assets and      liabilities:                                                             |                                   |   |   |
| (Increase) decrease in accounts      receivable                                                               | 12                                | 147  | (29) |
| (Increase) decrease in spare      parts and supplies                                                          | (34)                                   | 5  | (66) |
| (Increase) decrease in      prepayments and other assets                                                      | 206                               | (167) | 16  |
| Increase (decrease) in accounts      payable                                                                  | (104)                                  | (10) | 71  |
| Increase (decrease) in air      traffic and frequent flyer liability                                          | (26)                                   | (86) | 255  |
| Increase (decrease) in accrued      payroll, pension liability and other                                      |      45  |  (244) |  (130) |
| Net cash (used in) provided by      operating activities                                                      |    362             |  (324) | 1,133 |
| Cash      Flows from Investing Activities:                                                                    |                                   |   |   |
| Capital      expenditures                                                                                     | (381)                                  | (373) | (329) |
| Aircraft purchase deposits      refunded (paid), net                                                          | 29                                | 102  | (219) |
| (Purchase) sale of short-term      investments, net                                                           | 180                               | 115  | (314) |
| Proceeds from sales of      investments, net                                                                  | 30                                | 171  | 65  |
| Expenditures for airport      operating rights                                                                | (22)                                   | (131) | (116) |
| Proceeds from sales of property      and equipment                                                            | 64                                | 113  | 67  |
| Decrease (increase) in      restricted cash, cash equivalents and short-terminvestments                       |  26                          |        (13) |       86  |
| Other cash flows from investing      activities                                                               |      (4)      |         - |         - |
| Net cash used in investing      activities                                                                    |    (78)                 |    (16) |   (760) |
| Cash      Flows from Financing Activities:                                                                    |                                   |   |   |
| Payments on long-term debt and      capital lease obligations                                                 | (610)                                  | (641) | (429) |
| Proceeds from issuance of      long-term debt, net                                                            | 538                               | 642  | 26  |
| Proceeds from public offering      of common stock, net                                                       | 158                               | 358  | -  |
| Proceeds from issuance of      common stock pursuant to stock plans                                           |      11  |      18  |     35 |
| Net cash provided by (used in)      financing activities                                                      |      97  |    377  |   (368) |
| Net      Increase in Cash and Cash Equivalents                                                                | 381                               | 37  | 5  |
| Cash      and Cash Equivalents - Beginning of Period                                                          | 2,165                             | 2,128  | 2,123 |
| Cash      and Cash Equivalents - End of Period                                                                | $2,546                            | $2,165  | $2,128 |

----

|                                                                        | Year      Ended December 31,                             |
|-----------------------------------------------------------------------------|----------------------------------------------------------|
|                                                                        | 2009                                                     | 2008 | 2007 |
| Supplemental      Cash Flows Information:                                   |                                                     |   |   |
| Interest paid                                                               | $   326                              | $   365  | $  383  |
| Income taxes    paid                                                        | $       1        | $       5  | $      2  |
| Investing and Financing      Activities Not Affecting Cash:                 |                                                     |   |   |
| Property and equipment acquired      through the issuance of debt           | $   402                              | $1,014  | $ 190  |
| Reduction of debt in exchange      for sale of frequent flyer miles         | $        -  | $    (38) | $  (37) |
| Transfer of auction rate      securities from available-for-sale to trading | $        -  | $     97  | $     -  |
| Common stock issued upon      conversion of 4.5% convertible notes          | $        -  | $        -  | $ 170  |

----

|                                                                                                                                        |                                  |                                        |         | Retained                                    | Accumulated                                       |   |
|---------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------|---------------------------------------------|--------------|---------------------------------------------|---------------------------------------------------|--------|
|                                                                                                                                        | Class      B                          | Additional                                  | Earnings     | Other                                       |                                              |
|                                                                                                                                        | Common      Stock                     | Paid-In                                     | (Accumulated | Comprehensive                               |                                              |
|                                                                                                                                        | Shares                                | Amount                                      | Capital      | Deficit)                                    | Income      (Loss)                                | Total  |
|                                                                                                                                        |                                  |                                        |         |                                        |                                              |   |
| Balance      at December 31, 2006                                                                                                           | 92                                    | $  1                              |         | $1,411                                      | $  (13)                                 |   | $(1,013) |   | $   386 |
|                                                                                                                                        |                                  |                                        |         |                                        |                                              |   |
| Net      income                                                                                                                             | -                                     | -                                           |         | -                                      | 439                                          |   | -  |   | 439  |
| Other      comprehensive income:                                                                                                            |                                  |                                        |         |                                        |                                              |   |   |   |   |
|   Net      change in unrealized gain   (loss)      on derivative instruments                                       |      -       |       -       |         |      -        |       -        |   |  45  |   |    45  |
|   Net      change related to employee    benefit      plans                                                   |  -                               |  -                                     |         |  -                                |  -                                      |   |  463  |   |    463 |
|       Total      Comprehensive Income                                                                         |                                  |                                        |         |                                        |                                              |   |   |   | 947  |
|                                                                                                                                        |                                  |                                        |         |                                        |                                              |   |   |   |   |
| Conversion      of 4.5%  convertible      notes                                                                                   |    4                   |    -                         |         |     174                 |        -  |   |          -  |   |     174 |
| Issuance      of common stock   pursuant      to stock plans                                                            |  2                               |  -                                     |         |  35                                    |  -                                      |   |  -  |   |  35 |
| Stock-based      compensation                                                                                                               |   -                         |    -                         |         |     27                  |       -             |   |         - |   |     27 |
| Balance      at December 31, 2007                                                                                                           | 98                                    |   1                               |         | 1,647                                       | 426                                     |   |  (505) |   | 1,569 |
|                                                                                                                                        |                                  |                                        |         |                                        |                                              |   |
| Net      loss                                                                                                                               | -                                     | -                                           |         | -                                      | (586)                                             |   | -  |   | (586) |
| Other      comprehensive loss:                                                                                                              |                                  |                                        |         |                                        |                                              |   |   |   |   |
|   Net      change in unrealized gain   (loss)      on derivative instruments    and      other |       - |        - |         |       -  |        -  |   |   (441) |   |     (441) |
|   Net      change related to employee    benefit      plans                                                   |  -                               |  -                                     |         |  -                                |  -                                      |   |  (810) |   |     (810) |
|       Total      Comprehensive Loss                                                                           |                                  |                                        |         |                                        |                                              |   |   |   | (1,837) |
|                                                                                                                                        |                                  |                                        |         |                                        |                                              |   |   |   |   |
| Issuance      of common stock   pursuant      to stock plans                                                            |  1                               |  -                                     |         |  17                                    |  -                                      |   |  -  |   |  17 |
| Issuance      of common stock    pursuant      to stock offerings                                                       |  24                              |  -                                     |         |  358                                   |  -                                      |   |  -  |   |  358 |
| Stock-based      compensation                                                                                                               |     -             |    -                         |         |     16                  |       -             |   |          - |   |       16 |
| Balance      at December 31, 2008                                                                                                           | 123                                   |   1                               |         | 2,038                                       | (160)                                             |   | (1,756) |   |     123 |

----

|                                                                                                                                        |                                  |                                        |         | Retained                                          | Accumulated                                       |   |
|---------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------|---------------------------------------------|--------------|---------------------------------------------------|---------------------------------------------------|--------|
|                                                                                                                                        | Class      B                          | Additional                                  | Earnings     | Other                                             |                                              |
|                                                                                                                                        | Common      Stock                     | Paid-In                                     | (Accumulated | Comprehensive                                     |                                              |
|                                                                                                                                        | Shares                                | Amount                                      | Capital      | Deficit)                                          | Income      (Loss)                                | Total  |
|                                                                                                                                        |                                  |                                        |         |                                              |                                              |   |
| Net      loss                                                                                                                               | -                                     | -                                           |         | -                                            | (282)                                             |   | -  |   | (282) |
| Other      comprehensive income:                                                                                                            |                                  |                                        |         |                                              |                                              |   |   |   |   |
|   Net      change in unrealized gain   (loss)      on derivative instruments    and      other |       - |        - |         |       -        |        -  |   |   424 |   |   424  |
|   Net      change related to employee    benefit      plans                                                   |  -                               |  -                                     |         |  -                                      |  -                                      |   |  305 |   |      305  |
|   Tax      expense on other    comprehensive      income                                                      |  -                               |  -                                     |         |  -                                           |  -                                      |   |  (158) |   |    (158) |
|       Total      Comprehensive Income                                                                         |                                  |                                        |         |                                              |                                              |   |   |   | 289  |
|                                                                                                                                        |                                  |                                        |         |                                              |                                              |   |   |   |   |
| Issuance      of common stock   pursuant      to stock plans                                                            |  2                               |  -                                     |         |  11                                          |  -                                      |   |  -  |   |  11  |
| Issuance      of common stock    pursuant      to stock offerings                                                       |  14                              |  -                                     |         |  158                                         |  -                                      |   |  -  |   |  158  |
| Stock-based      compensation                                                                                                               |     -             |    -                         |         |         9 |       -             |   |          - |   |         9 |
| Balance      at December 31, 2009                                                                                                           | 139                                   | $  1                              |         | $2,216                                            | $(442)                                            |   | $(1,185) |   | $    590 |

----

| (a)    | Principles of      Consolidation.  Our consolidated financial statements      include the accounts of Continental and all wholly-owned      subsidiaries.  All intercompany accounts and transactions have      been eliminated in consolidation.                                                                                                                                                                                                                     |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (b)    | Use of      Estimates.  The preparation of financial statements in      conformity with accounting principles generally accepted in the United      States requires management to make estimates and assumptions that affect      the amounts reported in the financial statements and accompanying      notes.  Actual results could differ from those      estimates.                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (c)    | Cash and Cash      Equivalents.  We classify short-term, highly liquid      investments which are readily convertible into cash and have a maturity of      three months or less when purchased as cash and cash      equivalents.  Restricted cash, cash equivalents and short-term      investments is primarily collateral for estimated future workers'      compensation claims, credit card processing contracts, letters of credit      and performance bonds. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

----

| (d)    | Short-term      Investments.  Short-term investments primarily include      certificates of deposit placed through an account registry service      ("CDARS") and auction rate securities.  The CDARS we hold have      original maturities of 91 days and are insured by the Federal Deposit      Insurance Corporation.  Short-term investments are classified as      available-for-sale or trading securities and are stated at fair      value.  Trading securities consist of student loan-related      auction rate securities for which we have received an option to put the      securities back to the broker, discussed in Note 6.  Realized      gains and losses on specific investments are reflected in non-operating      income (expense) in our consolidated statements of      operations.  Unrealized gains and losses on available-for-sale      and trading securities are reflected as a component of accumulated other      comprehensive loss and non-operating income (expense) in our consolidated      statements of operations, respectively. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (e)    | Spare Parts and      Supplies.  Inventories, expendable parts and supplies      related to flight equipment are carried at average acquisition cost and      are expensed when consumed in operations.  An allowance for      obsolescence is provided over the remaining lease term or the estimated      useful life of the related aircraft, as well as to reduce the carrying      cost of spare parts currently identified as excess to the lower of      amortized cost or net realizable value.  We recorded additions      to this allowance for expense of $12 million, $26 million and $11 million      in the years ended December 31, 2009, 2008 and 2007,      respectively.  Spare parts and supplies are assumed to have an      estimated residual value of 10% of original cost.  These      allowances are based on management estimates, which are subject to      change.                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (f)    | Property and      Equipment.  Property and equipment is recorded at cost      and is depreciated to estimated residual value over its estimated useful      life using the straight-line method.  Jet aircraft and rotable      spare parts are assumed to have residual values of 15% and 10%,      respectively, of original cost; other categories of property and equipment      are assumed to have no residual value.  The estimated useful      lives of our property and equipment are as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Estimated Useful      Life |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|   | Jet      aircraft and simulators                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 25      to 30 years |
|   | Rotable      spare parts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Average      lease term oruseful      life for related aircraft |
|   | Buildings      and improvements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 10      to 30 years |
|   | Vehicles      and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 5      to 10 years |
|   | Computer      software                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 3      to 5 years |
|   | Capital      leases                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Shorter      of leaseterm      or useful life |
|   | Leasehold      improvements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Shorter      of leaseterm      or useful life |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|   | Amortization      of assets recorded under capital leases is included in depreciation      expense in our consolidated statement of operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

----

|   | The      carrying amount of computer software was $85 million and $80 million at      December 31, 2009 and 2008, respectively.  Depreciation expense      related to computer software was $30 million, $27 million and $28 million      in the years ended December 31, 2009, 2008 and 2007,      respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (g)    | Routes and Airport      Operating Rights.  Routes represent the right to fly      between cities in different countries.  Airport operating rights      represent gate space and slots (the right to schedule an arrival or      departure within designated hours at a particular      airport).  Routes and international airport operating rights are      indefinite-lived intangible assets and are not      amortized.  Routes and international airport operating rights      totaled $701 million and $713 million at December 31, 2009 and 2008,      respectively.  We perform a test for impairment of our routes      and international slots in the fourth quarter of each year.  In      2009, we recorded a $12 million non-cash charge to write off intangible      route assets related to certain Mexican and Central American locations as      a result of our annual impairment analysis.  We determined that      these routes had no fair value since they are subject to “open skies”      agreements and there are no other barriers to flying to these      locations.  In 2008, we recorded an $18 million non-cash charge      to write off an intangible route asset as a result of our decision to move      all of our flights between Newark Liberty International Airport ("New York      Liberty") and London from London Gatwick Airport to London Heathrow      Airport.  These write-offs are included in special charges in      our consolidated statement of operations. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | Airport      operating rights at domestic airports totaled $77 million and $91 million      at December 31, 2009 and 2008, respectively.  These assets are      amortized over the stated term of the related lease (for gates) or 20      years (for slots).  Amortization expense related to domestic      airport operating rights was $14 million for each of the years ended      December 31, 2009, 2008 and 2007.  We expect annual amortization      expense related to domestic airport operating rights to be approximately      $14 million in each of the next three years and $8 million and $6 million      in 2013 and 2014, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (h)    | Measurement of      Impairment of Long-Lived Assets.  We record impairment      losses on long-lived assets, consisting principally of property and      equipment and domestic airport operating rights, when events or changes in      circumstances indicate, in management's judgment, that the assets might be      impaired and the undiscounted cash flows estimated to be generated by      those assets are less than the carrying amount of those      assets.  The net carrying value of assets not recoverable is      reduced to fair value if lower than the carrying value.  In      determining the fair market value of the assets, we consider market      trends, recent transactions involving sales of similar assets and, if      necessary, estimates of future discounted cash flows.  See Note      13 for a discussion of aircraft impairment charges.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (i)    | Revenue/Air Traffic      Liability.  Passenger revenue is recognized either when      transportation is provided or when the ticket expires unused, rather than      when a ticket is sold.  Revenue is recognized for unused      non-refundable tickets on the date of the intended flight if the passenger      did not notify us of his or her intention to change the      itinerary.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

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|   | We      are required to charge certain taxes and fees on our passenger      tickets.  These taxes and fees include U.S. federal      transportation taxes, federal security charges, airport passenger facility      charges and foreign arrival and departure taxes.  These taxes      and fees are legal assessments on the customer.  As we have a      legal obligation to act as a collection agent with respect to these taxes      and fees, we do not include such amounts in passenger      revenue.   We record a liability when the amounts are      collected and relieve the liability when payments are made to the      applicable government agency.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Under      our capacity purchase agreements with regional carriers, we purchase all      of the capacity related to aircraft covered by the contracts and are      responsible for selling all of the related seat inventory.  We      record the related passenger revenue and related expenses, with payments      under the capacity purchase agreements reflected as a separate operating      expense in our consolidated statement of operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | The      amount of passenger ticket sales not yet recognized as revenue is included      in our consolidated balance sheets as air traffic and frequent flyer      liability.  We perform periodic evaluations of the estimated      liability for passenger ticket sales and any adjustments, which can be      significant, are included in results of operations for the periods in      which the evaluations are completed. These adjustments relate primarily to      differences between our statistical estimation of certain revenue      transactions and the related sales price, as well as refunds, exchanges,      interline transactions and other items for which final settlement occurs      in periods subsequent to the sale of the related tickets at amounts other      than the original sales price.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Revenue      from the shipment of cargo and mail is recognized when transportation is      provided.  Other revenue includes revenue from the sale of      frequent flyer miles (see (j) below), ticket change fees, baggage fees,      charter services, sublease income on aircraft leased to Holdings but not      operated for us and other incidental services.  Ticket change      fees relate to non-refundable tickets, but are considered a separate      transaction from the air transportation because they represent a charge      for our additional service to modify a previous sale.  Ticket      change fees are recognized as other revenue in our consolidated statement      of operations at the time the fees are assessed.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| (j)    | Frequent Flyer      Program.  For those OnePass accounts that have sufficient      mileage credits to claim the lowest level of free travel, we record a      liability for either the estimated incremental cost of providing travel      awards that are expected to be redeemed with us or the contractual rate of      expected redemption on alliance carriers.  Incremental cost      includes the cost of fuel, meals, insurance and miscellaneous supplies,      less any fees charged to the passenger for redeeming the rewards, but does      not include any costs for aircraft ownership, maintenance, labor or      overhead allocation.  We recorded an adjustment of $27 million      ($0.24 per basic and diluted share) to increase passenger revenue and      reduce our frequent flyer liability during 2008 for the impact of      redemption fees after we increased them during 2008.  A change      to these cost estimates, the actual redemption activity, the amount of      redemptions on alliance carriers or the minimum award level could have a      significant impact on our liability in the period of change as well as      future years.  The liability is adjusted periodically based on      awards earned, awards redeemed, changes in the incremental costs and      changes in the OnePass program, and is included in the accompanying      consolidated balance sheets as air traffic and frequent flyer      liability.  Changes in the liability are recognized as passenger      revenue in the period of change. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

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|   | We      also sell mileage credits in our frequent flyer program to participating      entities, such as credit/debit card companies, alliance carriers, hotels,      car rental agencies, utilities and various shopping and gift      merchants.  Revenue from the sale of mileage credits is deferred      and recognized as passenger revenue over the period when transportation is      expected to be provided, based on estimates of its fair      value.  Amounts received in excess of the expected      transportation's fair value are recognized in income currently and      classified as other revenue.  A change to the time period over      which the mileage credits are used (currently six to 26 months), the      actual redemption activity or our estimate of the amount or fair value of      expected transportation could have a significant impact on our revenue in      the year of change as well as future years. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | Prior      to joining Star Alliance in October 2009, we based our estimate of the      fair value of transportation related to frequent flyer miles sold on the      rates we charged other airlines.  In connection with joining      Star Alliance, we changed our estimate of the related transportation’s      fair value to be based on the rate that is equivalent to the fare of a      round trip ticket with restrictions similar to a frequent flyer      reward.  We made this change due to the disparate values of      rates charged in reciprocal agreements with other Star Alliance      members.  The resulting fair values are generally higher than      under our former estimates and will result in a larger portion of sales of      OnePass miles being deferred and then amortized into passenger revenue and      a lower portion being recognized as other revenue.                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | At      December 31, 2009, we estimated that approximately 2.6 million free      round-trip travel awards outstanding were expected to be redeemed for free      travel on Continental, Continental Express, Continental Connection, CMI or      alliance airlines.  Our total liability for future OnePass award      redemptions for free travel and unrecognized revenue from sales of OnePass      miles to other companies was approximately $348 million at December 31,      2009.  This liability is recognized as a component of air      traffic and frequent flyer liability in our consolidated balance      sheets.                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (k)    | Maintenance and Repair      Costs.  Maintenance and repair costs for owned and leased      flight equipment, including the overhaul of aircraft components, are      charged to operating expense as incurred.  Maintenance and      repair costs also include engine overhaul costs covered by cost-per-hour      agreements, a majority of which are expensed on the basis of hours      flown.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (l)    | Advertising      Costs.  We expense the costs of advertising as      incurred.  Advertising expense was $102 million, $93 million and      $106 million for the years ended December 31, 2009, 2008 and 2007,      respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (m)    | Regional Capacity      Purchase, Net.  Payments made to regional carriers under      capacity purchase agreements are reported in regional capacity purchase,      net, in our consolidated statement of operations.  Regional      capacity purchase, net, is net of our rental income on aircraft leased to      ExpressJet and flown for us through June 30, 2008.  Beginning      July 1, 2008, ExpressJet no longer pays us sublease rent for aircraft      operated on our behalf.                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (n)    | Foreign Currency Gains      (Losses).  Foreign currency gains (losses) are recorded      as part of other, net non-operating income (expense) in our consolidated      statements of operations.  Foreign currency gains (losses) were      $8 million, $(37) million and $2 million for the years ended December 31,      2009, 2008 and 2007, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

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|   |                                                                                                                                                                                                                                |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (o)    | Reclassifications.  Certain      reclassifications have been made in the prior years’ consolidated      financial statements and related note disclosures to conform to the      current year’s presentation. |

----

----

|                                                                                                                                               | 2009                                              | 2008   | 2007                                              |
|----------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------|--------|---------------------------------------------------|
|                                                                                                                                               |                                              |   |                                              |
| Numerator:                                                                                                                                         |                                              |   |                                              |
|   Numerator      for basic earnings (loss) per share - net income (loss)                                                                 | $(282)                                            |   | $(586)                                            |   | $439 |   |
|   Effect      of dilutive securities - interest expense on:                                                                              |                                              |   |                                              |   |   |   |
|     5%      convertible notes                                                                                                  | -                                            |   | -                                            |   | 12 |   |
|     6%      convertible junior subordinated debentures      held      by subsidiary trust        |         - |   |         - |   |     12 |   |
|   Numerator      for diluted earnings (loss) per share - net    income      (loss) after assumed conversions         |  $(282)                                      |   |  $(586)                                      |   |  $463 |   |
|                                                                                                                                               |                                              |   |                                              |   |   |   |
|     Denominator:                                                                                                               |                                              |   |                                              |   |   |   |
|   Denominator      for basic earnings (loss) per share -    weighted      average shares                             |  129                                    |   |  106                                    |   |  97 |   |
|   Effect      of dilutive securities:                                                                                                    |                                              |   |                                              |   |   |   |
|     5%      convertible notes                                                                                                  | -                                            |   | -                                            |   | 9 |   |
|     6%      convertible junior subordinated debentures      held      by subsidiary trust        |  -                                      |   |  -                                      |   |  4  |   |
|     Employee      stock options                                                                                                |        -       |   |       -             |   |     4  |   |
|   Dilutive      potential shares                                                                                                         |        -       |   |       -             |   |   17  |   |
|                                                                                                                                               |                                              |   |                                              |   |   |   |
|   Denominator      for diluted earnings (loss) per share -    weighted-average      shares after assumed conversions |    129                             |   |   106                              |   |  114 |   |

----

|                                                                                                                                                         | 2009                                              | 2008   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------|--------|
|                                                                                                                                                         |                                              |   |
| Secured                                                                                                                                                      |                                              |   |
| Notes      payable, interest rates of 5.375% to 9.0% (weighted average rate      of  7.1%      as of December 31, 2009), payable through 2022 |  $3,066                                      |   |  $2,862 |   |
| Floating      rate notes, with indicated interest rates:                                                                                                     |                                              |   |   |   |
|   LIBOR      (0.251% on December 31, 2009) plus 0.35% to 1.95%, payable    through      2020                                   |  1,153                                       |   |  1,345 |   |
|   LIBOR      plus 3.375%, payable in 2011                                                                                                     | 350                                               |   | 350 |   |
|   LIBOR      plus 3.125% to 3.25%, payable through 2014                                                                                            | 188                                               |   | 192 |   |
|   LIBOR      plus 2.5% to 5.0%, payable through 2019                                                                                               | 266                                               |   | 157 |   |
| Advance      purchases of mileage credits, implicit interest rates of 5.5% to      6.18%                                                                     | 186                                               |   | 148 |   |
| Other                                                                                                                                                        | 5                                                 |   | 15 |   |
|                                                                                                                                                         |                                              |   |   |   |
| Unsecured                                                                                                                                                    |                                              |   |   |   |
| 6.0%      convertible junior subordinated debentures, payable in2030                                                                                         | 248                                               |   | 248 |   |
| 4.5%      convertible notes, payable in 2015                                                                                                                 | 230                                               |   | -  |   |
| Note      payable, interest rate of 8.75%, payable in 2011                                                                                                   | 200                                               |   | 200 |   |
| 5%      convertible notes, callable beginning in 2010                                                                                                        | 169                                               |   |    157 |   |
| Other                                                                                                                                                        |         9 |   |         - |   |
|                                                                                                                                                         | 6,070                                             |   | 5,674 |   |
| Less:  current      maturities                                                                                                                     |    972                             |   |    516 |   |
| Total                                                                                                                                                        | $5,098                                            |   | $5,158 |   |

| Year      ending December 31, |   |
|-------------------------------|--------|
|                          | 2010   | $  972 |
|                          | 2011   | 1,142 |
|                          | 2012   | 584 |
|                          | 2013   | 650 |
|                          | 2014   | 332 |

----

----

----

|   |                                       | 2009   | 2008   |
|--------|--------------------------------------------|--------|--------|
|   |                                       |   |   |
|   | Principal      amount of convertible notes | $175   |   | $175 |   |
|   | Unamortized      discount                  | 6      |   | 18 |   |
|   | Net      carrying amount                   | 169    |   | 157 |   |
|   | Additional      paid-in capital            | 64     |   | 64 |   |

----

|                                                  | 2009     | 2008   | 2007     |
|-------------------------------------------------------|----------|--------|----------|
|                                                  |     |   |     |
| Contractual      coupon interest                      | $ 9 |   | $ 9 |   | $ 9 |   |
| Amortization      of discount on 5% convertible notes | 12       |   | 11       |   | 10 |   |
|   Interest      expense                     | $21      |   | $20      |   | $19 |   |
|                                                  |     |   |     |   |   |   |
| Effective      interest rate                          | 13%      |   | 13%      |   | 13% |   |

----

|                                                       |                      | CapitalLeases | Operating      Leases |
|------------------------------------------------------------|---------------------------|---------------|-----------------------|
| Aircraft                                                   | Non-aircraft              |
|                                                       |                      |          |                  |   |
| Year      ending December 31,                              |                      |          |                  |
|                                                       | 2010                      | $ 17     |                  | $     994 |   | $  462 |   |
|                                                       | 2011                      | 16            |                  | 977 |   | 426 |   |
|                                                       | 2012                      | 16            |                  | 948 |   | 513 |   |
|                                                       | 2013                      | 16            |                  | 933 |   | 376 |   |
|                                                       | 2014                      | 16            |                  | 904 |   | 359 |   |
|                                                       | Later      years          |  385     |                  |  3,389 |   | 3,694 |   |
|                                                       |                      |          |                  |   |   |   |   |
| Total      minimum lease payments                          | 466                       |          | $8,145                |   | $5,830 |   |
| Less:  amount      representing interest         |  270                 |          |                  |   |   |   |
| Present      value of capital leases                       | 196                       |          |                  |   |   |   |
| Less:  current      maturities of capital leases |     3 |          |                  |   |   |   |
| Long-term      capital leases                              | $193                      |          |                  |   |   |   |

----

|   | Level      1: | Observable      inputs such as quoted prices for identical assets or liabilities in active      markets                                                                                                |
|--------|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Level      2: | Other      inputs that are observable directly or indirectly, such as quoted prices      for similar assets or liabilities or market-corroborated      inputs                                          |
|   | Level      3: | Unobservable      inputs for which there is little or no market data and which require us to      develop our own assumptions about how market participants would price the      assets or liabilities |

|   | The      valuation techniques that may be used to measure fair value are as      follows: |
|--------|-------------------------------------------------------------------------------------------|

|   | (A) | Market      approach - Uses prices and other relevant information generated by market      transactions involving identical or comparable assets or      liabilities                                                                                                       |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (B) | Income      approach - Uses valuation techniques to convert future amounts to a single      present amount based on current market expectations about those future      amounts, including present value techniques, option-pricing models and      excess earnings method |
|   | (C) | Cost      approach - Based on the amount that currently would be required to replace      the service capacity of an asset (replacement  cost)                                                                                                                             |

|                                                                              | Carrying      Amount as ofDecember 31,      2009 |  Level      1 |  Level      2 |  Level      3 | ValuationTechnique               |
|-----------------------------------------------------------------------------------|--------------------------------------------------|--------------------|--------------------|--------------------|----------------------------------|
|                                                                              |                                             |               |               |               |                             |
| Cash      and cash equivalents                                                    | $2,546                                      |               | $2,546             | $-            | $     - | (A) |
| Short-term      investments:                                                      |                                             |               |               |               |                             |   |
|   Auction      rate securities                                          | 201                                         |               | -             | -             | 201                              | (B) |
|   Other                                                                 | 109                                         |               | 109                | -             | -                           | (A) |
| Restricted      cash, cash equivalents and  short-term      investments |  164                                   |               |  164          |  -       |  -                     |  (A) |
| Auction      rate securities put right                                            | 20                                          |               | -             | -             | 20                          | (B) |
| Fuel      derivatives                                                             | 14                                          |               | -             | -             | 14                          | (A) |
| Foreign      currency derivatives                                                 | 5                                           |               | -             | 5             | -                           | (A) |

----

|                         | Carrying      Amount as ofJune 30,      2009 |  Level      1 |  Level      2 |  Level      3 | TotalLosses |
|------------------------------|----------------------------------------------|--------------------|--------------------|--------------------|-------------|
|                         |                                         |               |               |               |        |
| Property      and Equipment: |                                         |               |               |               |        |
| Boeing      737-300 fleet    | $90                                          |               | -                  |               | -           |   | $90 |   | $(19) |   |
| Boeing      737-500 fleet    | 82                                           |               | -                  |               | -           |   | 82 |   | (12) |   |
|                         |                                         |               |               |               |        |   |   |   | $(31) |   |

|                           | Fair      Value | Par      Value | Amortized      Cost |
|--------------------------------|-----------------|----------------|---------------------|
|                           |            |           |                |
| Short-term      investments:   |            |           |                |
|   Available-for-sale | $136            |           | $166                |   | $136  |   |
|   Trading            |   65  |           |   86      |   | N/A |   |
|     Total  | $201            |           | $252                |   |   |   |

----

----

|                                                   | Student      Loan-RelatedAuction Rate      Securities | Auction      RateSecurities Put      Right | FuelDerivatives     |
|--------------------------------------------------------|-------------------------------------------------------|--------------------------------------------|---------------------|
|                                                   |                                                  |                                       |                |
| Balance      at December 31, 2008                      | $229                                             |                                       | $26            |   | $(415) |   |
| Purchases,      sales, issuances and settlements (net) | (40)                                                  |                                       | -                   |   | 393  |   |
| Gains      and losses:                                 |                                                  |                                       |                |   |   |   |
| Reported in    earnings:                               |                                                  |                                       |                |   |   |   |
| Realized                                               | 8                                                |                                       | (7)                 |   | -  |   |
| Unrealized                                             | 1                                                |                                       | 1              |   | 7  |   |
| Reported in other comprehensive      income (loss)     |     3                             |                                       |    - |   |    29 |   |
| Balance      at December 31, 2009                      | $201                                                  |                                       | $20                 |   | $   14 |   |

| · | Debt.  The      fair value of our debt with a carrying value of $6.1 billion at December      31, 2009 and $5.7 billion at December 31, 2008 was approximately $5.8      billion and $4.6 billion, respectively.  These estimates were      based on either market prices or the discounted amount of future cash      flows using our current incremental rate of borrowing for similar      liabilities.                                                          |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| · | Investment in COLI      Products.  In connection with certain of our supplemental      retirement plans, we previously held company owned life insurance policies      on certain of our employees.  We terminated all of the policies      in 2009.  As of December 31, 2008, the carrying value of the      cash surrender value of the life insurance policies was $26 million, which      was based on the fair value of the underlying  investments. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| · | Accounts Receivable      and Accounts Payable.  The fair values of accounts      receivable and accounts payable approximated carrying value due to their      short-term maturity.                                                                                                                                                                                                                                                                                           |

----

|                                | Maximum      Price              | Minimum      Price                          |
|-------------------------------------|---------------------------------|---------------------------------------------|
|                                | %      ofExpectedConsumption    | WeightedAverage      Price(per      gallon) | %      ofExpectedConsumption | WeightedAverage      Price(per      gallon) |
|                                |                            |                                        |   |   |
| Gulf      Coast jet fuel swaps      | 1%                              |                                        | $1.94 |   | 1% |   | $1.94 |   |
| WTI      crude oil swaps            |   2    |                                        | 1.84 |   | 2     |   | 1.84 |   |
| WTI      crude oil call options     |  4          |                                        | 2.20 |   | N/A    |   | N/A |   |
|      Total |  7%                        |                                        |   |   |     3% |   |   |   |

----

|                              | Asset      Derivatives                    | Liability      Derivatives      |
|-----------------------------------|-------------------------------------------|---------------------------------|
|                              | Balance      SheetLocation                | FairValue                       | Balance      SheetLocation | FairValue |
|                              |                                      |                            |   |   |
| Fuel      derivatives             | Prepayments      and other current assets | $  14            |   | Accrued      other current liabilities | $ -  |   |
|                              |                                      |                            |   |   |   |   |
| Foreign      currency derivatives | Prepayments      and other current assets | 5      |   | Accrued      other current liabilities | -     |   |
| Total      derivatives            |                                      | $ 19                       |   |   | $ - |   |

| Cash Flow      Hedges             | Gain      (Loss)Recognized      inOCI(Effective      Portion) | Gain      (Loss) Reclassified fromAccumulated      OCI into Income(Effective      Portion) | Gain      (Loss) Recognized inIncome (Ineffective      Portion) |
|-----------------------------------|---------------------------------------------------------------|--------------------------------------------------------------------------------------------|-----------------------------------------------------------------|
| Income      StatementLocation     | Amount                                                        | Income      StatementLocation                                                              | Amount                                                          |
|                              |                                                          |                                                                                       |                                                            |   |   |
| Fuel      derivatives        | $36                                                      |                                                                                       | Aircraft      fuel andrelated      taxes                        | $(380)  |   | Other      nonoperatingincome      (expense) | $7  |   |
|                              |                                                          |                                                                                       |                                                            |   |   |   |   |   |
| Foreign      currency derivatives | 10                                   |                                                                                       | Passenger      revenue                                     | (2)         |   | Other      nonoperatingincome      (expense) | -   |   |
| Total                             | $46                                                           |                                                                                       |                                                            | $(382) |   |   | $7 |   |

----

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|                                                             |                   2009                    |                   2008                    |                   2007                    |
|------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                             |   Options                                                                                                                                                                                                                | Weighted-AverageExercise      Price                                                                                                                                                                                                |   Options                                                                                                                                                                                                                | Weighted-AverageExercise      Price |   Options | Weighted-AverageExercise      Price |
|                                                             |                                                                                                                                                                                                                               |                                                                                                                                                                                                                               |                                                                                                                                                                                                                               |   |   |   |
| Outstanding      at  beginning      of  year |   7,972                                                                                                                                                                                                             |   $16.65                                                                                                                                                                                                                 |                                                                                                                                                                                                                               |   7,817  |   $17.36 |   |   8,991  |   $15.12 |   |
| Granted                                                          | 713                                                                                                                                                                                                                           | $  9.40                                                                                                                                                                                                                  |                                                                                                                                                                                                                               | 752  | $10.84 |   | 728  | $35.72 |   |
| Exercised                                                        | (383)                                                                                                                                                                                                                              | $11.72                                                                                                                                                                                                                             |                                                                                                                                                                                                                               | (375) | $12.49 |   | (1,699) | $13.39 |   |
| Cancelled                                                        |    (188)                                                                                                                                                                                                            | $23.86                                                                                                                                                                                                                             |                                                                                                                                                                                                                               |    (222) | $29.14 |   |    (203) | $17.29 |   |
| Outstanding      at  end      of year                  |   8,114                                                                                                                                                                                                             |  $16.08                                                                                                                                                                                                                       |                                                                                                                                                                                                                               |   7,972  |  $16.65 |   |   7,817 |  $17.36 |   |
| Exercisable      at  end      of year                  |   6,550                                                                                                                                                                                                             |  $15.98                                                                                                                                                                                                                       |                                                                                                                                                                                                                               |   6,212  |  $15.08 |   |   3,393  |  $15.45 |   |

|   |                                                      | 2009   | 2008        | 2007         |
|--------|-----------------------------------------------------------|--------|-------------|--------------|
|   |                                                      |   |        |         |
|   | Risk-free      interest rate                              | 2.0%   | 3.1%        | 4.9%         |
|   | Dividend      yield                                       | 0%     | 0%          | 0%           |
|   | Expected      market price volatility of our common stock | 86%    | 62%         | 57%          |
|   | Expected      life of options (years)                     | 3.9    | 3.9    | 3.9     |
|   | Fair      value of options granted                        | $5.75  | $5.32  | $16.95  |

----

| Options      Outstanding                |
|-----------------------------------------|
|                                    |   |   |   |
|  Range      ofExercise      Prices |   Number | WeightedAverage      RemainingContractual Life      (Years) |  Weighted      Average   Exercise      Price    |
|                                    |   |   |   |
| $9.22-$11.72                            |   | 1,286 |   | 4.3 |   | $   9.59 |   |
| $11.89                                  |   | 4,333 |   | 1.9 |   | $11.89 |   |
| $11.96-$20.31                           |   |   1,124 |   | 2.4 |   | $19.21 |   |
| $20.97-$49.80                           |   |  1,371 |   | 2.3 |   | $32.83 |   |
|                                    |   |   |   |   |   |   |   |
| $9.22-$49.80                            |   |  8,114 |   | 2.4 |   | $16.08 |   |

| Options      Exercisable          |
|-----------------------------------|
|                              |   |   |   |
| Range      ofExercise      Prices |  Number | Weighted      Average   Exercise      Price     |
|                              |   |   |
| $9.22-$11.72                      |   | 206 |   | $ 9.84 |   |
| $11.89                            |   | 4,333 |   | $11.89 |   |
| $11.96-$20.31                     |   | 1,081 |   | $19.34 |   |
| $20.97-$49.80                     |   |    930 |   | $32.52 |   |
|                              |   |   |   |   |   |
| $9.22-$49.80                      |   | 6,550 |   | $15.98 |   |

----

----

|                                                                                              | 2009      Grant                             | 2008      Grant                             |
|---------------------------------------------------------------------------------------------------|---------------------------------------------|---------------------------------------------|
|                                                                                              |                                        |                                        |
| Initial      grant date                                                                           | February      2009                          | February      2008                          |
|                                                                                              |                                        |                                        |
| Number      of RSU awards outstanding                                                             | 1.3      million                            | 0.8      million                            |
|                                                                                              |                                        |                                        |
| Performance      period                                                                           | January      1, 2009-December      31, 2011 | January      1, 2008-December      31, 2010 |
|                                                                                              |                                        |                                        |
| Cumulative      profit sharing targets (range)                                                    | $0-$375      million                        | $0-$275      million                        |
|                                                                                              |                                        |                                        |
| Cumulative      profit sharing achieved to date  for      applicable performance period |  $0                                    |  $0                                    |
|                                                                                              |                                        |                                        |
| Payment      percentages (range)                                                                  | 0%-400%                                     | 0%-200%                                     |
|                                                                                              |                                        |                                        |
| Probable      payment percentage:                                                                 |                                        |                                        |
|   As      of December 31, 2009                                                          | 0%                                          | 0%                                          |
|   As      of December 31, 2008                                                          | N/A                                         | 100%                                        |
|                                                                                              |                                        |                                        |
| Unrestricted      cash, cash equivalents and  short-term      investments hurdle        |  $2.2      billion                     |  $2.2      billion                     |

----

|                                                                                                                            | Defined      Benefit Pension andRetiree Medical      Benefits Plans | UnrealizedGain      (Loss)on      DerivativeInstruments      and Other |                              |              |
|---------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------|-----------------------------------------------------------------------------|-----------------------------------|-------------------|
|                                                                                                                            | UnrecognizedPrior Service      Cost                            | UnrecognizedActuarialGains      (Losses)                                    | Income      TaxBenefit(Expense)   |   Total |
|                                                                                                                            |                                                                |                                                                        |                              |              |   |
| Balance      at December 31, 2006                                                                                               | $(262)                                                              |                                                                        | $(971)                            |              | $ (16) |   | $ 236  |   | $(1,013) |
| Derivative      financial instruments:                                                                                          |                                                                |                                                                        |                              |              |   |   |   |   |   |
|   Reclassification      into earnings                                                                                 | -                                                              |                                                                        | -                            |              | (48) |   | -  |   | (48) |
|   Change      in fair value                                                                                           | -                                                              |                                                                        | -                            |              | 93  |   | -  |   | 93  |
| Employee      benefit plans:                                                                                                    |                                                                |                                                                        |                              |              |   |   |   |   |   |
|  Reclassification      of unrecognized    net      actuarial loss into    earnings |   -                                                  |                                                                        |   97               |              |   -  |   |   -  |   |   97  |
|   Reclassification      of prior service    cost      into earnings                               |  30                                                       |                                                                        |  -                      |              |  -  |   |  -  |   |  30  |
|   Current      year prior service cost                                                                                | (18)                                                                |                                                                        | -                            |              | -  |   | -  |   | (18) |
|   Current      year actuarial gain                                                                                    |        -                         |                                                                        |      354 |              |       - |   |       - |   |     354 |
| Balance      at December 31, 2007                                                                                               | (250)                                                               |                                                                        | (520)                             |              | 29  |   | 236  |   | (505) |
| Derivative      financial instruments:                                                                                          |                                                                |                                                                        |                              |              |   |   |   |   |   |
|   Reclassification      into earnings                                                                                 | -                                                              |                                                                        | -                            |              | 170  |   | -  |   | 170  |
|   Change      in fair value                                                                                           | -                                                              |                                                                        | -                            |              | (608) |   | -  |   | (608) |
| Unrealized      loss on student loan-    related      auction rate securities                               |  -                                                        |                                                                        |  -                      |              |  (3) |   |  -  |   |  (3) |
| Employee      benefit plans:                                                                                                    |                                                                |                                                                        |                              |              |   |   |   |   |   |
|  Reclassification      of unrecognized    net      actuarial loss into    earnings |   -                                                  |                                                                        |   85               |              |   -  |   |   -  |   |   85  |
|   Reclassification      of prior service    cost      into earnings                               |  31                                                       |                                                                        |  -                      |              |  -  |   |  -  |   |  31  |
|   Current      year actuarial loss                                                                                    |        -                         |                                                                        |    (926)           |              |       - |   |       - |   |    (926) |
| Balance      at December 31, 2008                                                                                               | (219)                                                               |                                                                        | (1,361)                           |              | (412) |   |  236  |   | (1,756) |
|                                                                                                                            |                                                                |                                                                        |                              |              |   |   |

----

|                                                                                                                            | Defined      Benefit Pension andRetiree Medical      Benefits Plans | UnrealizedGain      (Loss)on      DerivativeInstruments      and Other |                                                          |              |
|---------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------|-----------------------------------------------------------------------------|---------------------------------------------------------------|-------------------|
|                                                                                                                            | UnrecognizedPrior Service      Cost                            | UnrecognizedActuarialGains      (Losses)                                    | Income      TaxBenefit(Expense)                               |   Total |
|                                                                                                                            |                                                                |                                                                        |                                                          |              |   |
| Derivative      financial instruments:                                                                                          |                                                                |                                                                        |                                                          |              |   |   |   |   |   |
|   Reclassification      into earnings                                                                                 | -                                                              |                                                                        | -                                                        |              | 375  |   | -  |   | 375  |
|   Change      in fair value                                                                                           | -                                                              |                                                                        | -                                                        |              | 46  |   | -  |   | 46  |
| Unrealized      gain on student loan-    related      auction rate securities                               |  -                                                        |                                                                        |  -                                                  |              |  3  |   |  -  |   |  3  |
| Employee      benefit plans:                                                                                                    |                                                                |                                                                        |                                                          |              |   |   |   |   |   |
|  Reclassification      of unrecognized    net      actuarial loss into    earnings |   -                                                  |                                                                        |   138                                          |              |   -  |   |   -  |   |   138  |
|   Reclassification      of prior service    cost      into earnings                               |  31                                                       |                                                                        |  -                                                  |              |  -  |   |  -  |   |  31  |
|   Current      year actuarial gain                                                                                    |        -                    |                                                                        |      136                        |              |       -  |   |       -  |   |      136  |
| Income      tax expense                                                                                                         |        -                         |                                                                        |           - |              |       - |   | (158) |   |    (158) |
| Balance      at December 31, 2009                                                                                               | $(188)                                                              |                                                                        | $(1,087)                                                      |              | $   12 |   | $    78 |   | $(1,185) |

----

|                                         | DefinedBenefit      Pension | RetireeMedical      Benefits |
|----------------------------------------------|-----------------------------|------------------------------|
|                                         | 2009                        | 2008                         | 2009 | 2008 |
|                                         |                        |                         |   |   |
| Accumulated      benefit obligation          | $2,401                 |                         | $2,273 |   | N/A  |   | N/A  |   |
|                                         |                        |                         |   |   |   |   |   |   |
| Benefit      obligation at beginning of year | 2,482                  |                         | $2,353  |   | $249  |   | $252  |   |
| Service      cost                            | 65                     |                         | 59  |   | 11  |   | 12  |   |
| Interest      cost                           | 153                    |                         | 149  |   | 15  |   | 16  |   |
| Actuarial      (gains) losses                | 70                     |                         | 168  |   | (26) |   | (17) |   |
| Participant      contributions               | -                      |                         | -  |   | 2  |   | 2  |   |
| Benefits      paid                           | (49)                        |                         | (118) |   | (18) |   | (16) |   |
| Lump      sum settlements                    |    (92)      |                         |   (129) |   |      - |   |      - |   |
| Benefit      obligation at end of year       | $2,629                 |                         | $2,482 |   | $233 |   | $249 |   |

|                                                                                      | 2009                   | 2008   |
|-------------------------------------------------------------------------------------------|------------------------|--------|
|                                                                                      |                   |   |
| Fair      value of plan assets at beginning of year                                       | $1,057            |   | $1,817  |   |
| Actual      gains (losses) on plan assets                                                 | 268               |   | (618) |   |
| Employer      contributions, including benefits  paid      under unfunded plans |  187         |   |  105  |   |
| Benefits      paid                                                                        | (49)                   |   |   (118) |   |
| Lump      sum settlements                                                                 |    (92) |   |   (129) |   |
| Fair      value of plan assets at end of year                                             | $1,371                 |   | $1,057 |   |

----

|                                              | DefinedBenefit      Pension                       | RetireeMedical      Benefits |
|---------------------------------------------------|---------------------------------------------------|------------------------------|
|                                              | 2009                                              | 2008                         | 2009 | 2008 |
|                                              |                                              |                         |   |   |
| Accrued      payroll                              | $     10                 |                         | $      8 |   | $     17  |   | $   15  |   |
| Accrued      pension liability                    | 1,248                                             |                         | 1,417 |   | -  |   | -  |   |
| Accrued      retiree medical benefits             |        -  |                         |        -  |   |   216 |   | 234 |   |
| Funded      status of the plans - net underfunded | $1,258                                            |                         | $1,425 |   | $  233 |   | $249 |   |

|                                       | DefinedBenefit      Pension       | RetireeMedical      Benefits |
|--------------------------------------------|-----------------------------------|------------------------------|
|                                       |                              |                         |
| Unrecognized      prior service cost       | $     22 |                         | $166  |   |
| Unrecognized      actuarial (gains) losses | $1,174                            |                         | $(87) |   |

|                          | Defined  Benefit      Pension | RetireeMedical      Benefits |
|-------------------------------|-----------------------------------------|------------------------------|
|                          |                                    |                         |
| Prior      service cost       | $  10                         |                         | $21  |   |
| Actuarial      (gains) losses | $  87                         |                         | $(4) |   |

|                                                | DefinedBenefit      Pension     | RetireeMedical      Benefits |
|-----------------------------------------------------|---------------------------------|------------------------------|
|                                                | 2009                            | 2008                         | 2009 | 2008 |
|                                                |                            |                         |   |   |   |
| Weighted      average discount rate                 | 6.01%                           |                         | 6.13% |   | 5.57% |   | 6.03% |   |   |
| Weighted      average rate of compensation increase | 2.30%                           |                         | 2.30% |   | -      |   | -      |   |   |
| Health      care cost trend rate                    | -      |                         | -       |   | 7.50% |   | 7.50% |   |   |

----

|                                                                        | Defined Benefit      Pension           | Retiree Medical      Benefits          |
|-----------------------------------------------------------------------------|----------------------------------------|----------------------------------------|
|                                                                        | 2009                                   | 2008                                   | 2007 | 2009 | 2008 | 2007 |
|                                                                        |                                   |                                   |   |   |   |   |
| Service      cost                                                           | $  65                   | $  59                   | $  61  | $  11  | $12  | $11  |
| Interest      cost                                                          | 153                               | 149                               | 158  | 15  | 15  | 14  |
| Expected      return on plan assets                                         | (89)                                   | (157)                                  | (137) | -  | -  | -  |
| Amortization      of unrecognized  net      actuarial (gain) loss |     111       |     34        |     68  |     (2) |     (1) |     (2) |
| Amortization      of prior service cost                                     |    10              |    10              |    10  |    21 | 21 | 20 |
| Net      periodic benefit expense                                           | 250                               | 95                                | 160  | 45  | 47  | 43  |
| Settlement      charges (included in  special      charges)       |      29  |      52  |     31  |        - |     - |     - |
| Net      benefit expense                                                    | $ 279                        | $ 147                        | $ 191  | $   45 | $47 | $43 |

|                                                                  | Defined Benefit      Pension    | Retiree Medical      Benefits         |
|-----------------------------------------------------------------------|---------------------------------|---------------------------------------|
|                                                                  | 2009                            | 2008                                  | 2007 | 2009 | 2008 | 2007 |
|                                                                  |                            |                                  |   |   |   |   |
| Weighted      average discount rate                                   | 6.13%                           | 6.27%                                 | 5.95% | 6.03% | 6.02% | 5.76% |
| Expected      long-term rate of return  on      plan assets |  8.25%                     |  8.50%                           |  8.26% |  -      |  -      |  -      |
| Weighted      average rate of       compensation increase        |  2.30%                     |  2.30%                           |  2.30% |  -      |  -      |  -      |
| Health      care cost trend rate                                      | -      | -       | -      | 7.50% | 8.00% | 8.00% |

----

|                                                                                    | One      PercentIncrease | One      PercentDecrease |
|-----------------------------------------------------------------------------------------|--------------------------|--------------------------|
|                                                                                    |                     |                     |
| Impact      on 2009 retiree medical benefits expense                                    | $  3           |                     | $ (2) |   |
| Impact      on accrued retiree medical benefits as of  December      31, 2009 |  $22                |                     |  $(20) |   |

|                                     | Total                        | Level      1 | Level      2 | Level      3                                            |
|------------------------------------------|------------------------------|--------------|--------------|---------------------------------------------------------|
|                                     |                         |         |         |                                                    |
| Equity      securities:                  |                         |         |         |                                                    |
|   U.S.      companies          | $    661 | $ -     |         | $    661                            | $     - |
|   International      companies | 292                          | -            |         | 292                                                     |   |
| Fixed-income      securities             | 290                          | -            |         | 290                                                     | - |
| Private      equity funds                |    128        |  -      |         |          - | 128 |
| Total                                    | $1,371                       | $ -     |         | $1,243                                                  | $128 |

----

|                                                                                 | Private Equity      Funds |
|--------------------------------------------------------------------------------------|---------------------------|
|                                                                                 |                      |
| Balance      at December 31, 2008                                                    | $127                      |   |
| Actual      return on plan assets:                                                   |                      |   |
|   Unrealized      gains (losses) relating to assets still held at year end | (2)                       |   |
| Purchases,      sales, issuances and settlements (net)                               |    3       |   |
| Balance      at December 31, 2009                                                    | $128                      |   |

|                                     |  Percent of      Total  | Expected      Long-TermRate of      Return |
|------------------------------------------|------------------------------|--------------------------------------------|
|                                     |                         |                                       |
| Equity      securities:                  |                         |                                       |
|   U.S.      companies          | 35-55%                       |                                       | 8% |   |
|   International      companies | 15-25         |                                       | 9    |   |
| Fixed-income      securities             | 15-25         |                                       | 5    |   |
| Other                                    |  0-15    |                                       | 11    |   |

----

|   |                   | DefinedBenefit      Pension | RetireeMedical      Benefits |
|--------|------------------------|-----------------------------|------------------------------|
|   |                   |                        |                         |
|   | 2010                   | $ 155                  |                         | $ 17 |   |
|   | 2011                   | 165                         |                         | 17 |   |
|   | 2012                   | 180                         |                         | 17 |   |
|   | 2013                   | 192                         |                         | 17 |   |
|   | 2014                   | 208                         |                         | 18 |   |
|   | 2015      through 2019 | 946                         |                         | 105 |   |

----

|                                                                  | 2009                                   | 2008   | 2007                   |
|-----------------------------------------------------------------------|----------------------------------------|--------|------------------------|
|                                                                  |                                   |   |                   |
| Federal:                                                              |                                   |   |                   |
| Current                                                               | $     -  |   | $   (2) |   | $   (3) |   |
| Deferred                                                              | 143                               |   | 233               |   | (194) |   |
| State:                                                                |                                   |   |                   |   |   |   |
| Current                                                               | (1)                                    |   | -                 |   | (2) |   |
| Deferred                                                              | 15                                |   | 20                |   | (17) |   |
| Foreign:                                                              |                                   |   |                   |   |   |   |
| Current                                                               | -                                 |   | -                 |   | (1) |   |
| Tax      benefit resulting from intraperiod tax  allocation |  158                         |   |  -           |   |  -  |   |
| Valuation      allowance                                              | (158)                                  |   | (142)                  |   |   100 |   |
| Total      income tax benefit (expense)                               | $   157                 |   | $   109 |   | $(117) |   |

----

|                                                                                      | Amount                 | Percentage             |
|-------------------------------------------------------------------------------------------|------------------------|------------------------|
|                                                                                      | 2009                   | 2008                   | 2007 | 2009 | 2008 | 2007 |
|                                                                                      |                   |                   |   |   |   |   |
| Income      tax benefit (expense)  at      United States statutory rates        |  $154        |  $243        |  $(194) |  35.0% |  35.0% |  35.0% |
| State      income tax benefit (expense),  net      of federal benefit (expense) |  9           |  14          |  (12) |  2.0      |  2.0      |  2.1    |
| Meals      and entertainment disallowance                                                 | (4)                    | (5)                    | (6) | (1.0)    | (0.7)    | 1.1    |
| Tax      benefit resulting from intraperiod  tax      allocation                |  158         |  -           |  -  |  36.0     |  -       |  -       |
| Valuation      allowance                                                                  | (158)                  | (142)                  | 100  | (36.0)   | (20.4)    | (18.0)   |
| Other                                                                                     |    (2)  |    (1)  |    (5) |   (0.3)    |   (0.1)    |    0.9    |
| Income      tax benefit (expense)                                                         | $  157  | $  109  | $(117) | 35.7 % | 15.8 % | 21.1% |

----

|                                             | 2009                                               | 2008   |
|--------------------------------------------------|----------------------------------------------------|--------|
|                                             |                                               |   |
| Fixed      assets, intangibles and spare parts   | $(1,775)                                           |   | $(1,767) |   |
| Other,      net                                  |     (58)                       |   |        - |   |
|                                             |                                               |   |   |   |
| Gross      deferred tax liabilities              | (1,833)                                            |   | (1,767) |   |
|                                             |                                               |   |   |   |
| Net      operating loss carryforwards            | 1,412                                         |   | 1,355  |   |
| Pension      liability                           | 412                                           |   | 481  |   |
| Accrued      liabilities                         |    516                         |   |    558  |   |
| Other,      net                                  |        56  |   |     161  |   |
|                                             |                                               |   |   |   |
| Gross      deferred tax assets                   |  2,396                                        |   |  2,555 |   |
|                                             |                                               |   |   |   |
| Valuation      allowance                         |    (563)                            |   |    (788) |   |
|                                             |                                               |   |   |   |
| Net      deferred tax liability                  | -                                             |   | -  |   |
|                                             |                                               |   |   |   |
| Less:  current      deferred tax asset |    203                              |   |    216 |   |
|                                             |                                               |   |   |   |
| Non-current      deferred tax liability          | $ (203)                                       |   | $ (216) |   |

----

|                                                                                                                                 | 2009                                  | 2008                              | 2007                            |
|--------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------|-----------------------------------|---------------------------------|
|                                                                                                                                 |                                  |                              |                            |
| Balance      at beginning of year                                                                                                    | $ 788                       | $ 192                   | $ 473                 |
|                                                                                                                                 |                                  |                              |                            |
| Valuation      allowance (utilized) provided for taxes related to:                                                                   |                                  |                              |                            |
|     Income      (loss) before income taxes                                                                       | 158                              | 142                          | (100)                           |
|     Items      recorded directly to accumulated other      comprehensive      loss |  (269)                           |  462                    |  (187)                     |
|     Expiration      of NOLs                                                                                      | (115)                                 | -                            | -                          |
|     Other                                                                                                        |       1 |      (8) |      6 |
| Balance      at end of year                                                                                                          | $ 563                            | $ 788                        | $ 192                      |

|                                          | 2009                        | 2008                        | 2007                      |
|-----------------------------------------------|-----------------------------|-----------------------------|---------------------------|
|                                          |                        |                        |                      |
| Aircraft-related      charges                 | $    89 | $    40 | $(22)                     |
| Pension      settlement charges (see Note 11) |    29        |    52        |   31       |
| Severance                                     | 5                           | 34                          | -                    |
| Route      impairment (see Notes 1 and 2)     | 12                          | 18                          | -                    |
| Other                                         |    10        |    37        |     4 |
| Total      special charges                    | $ 145                  | $ 181                  | $  13           |

----

----

|                                                                               | Severance/Medical      Costs     | PermanentlyGrounded      Aircraft | UnusedFacilities           |
|------------------------------------------------------------------------------------|----------------------------------|-----------------------------------|----------------------------|
|                                                                               |                             |                              |                       |
| Balance      at December 31, 2006                                                  | $    -  |                              | $   -  |   | $10  |   |
| Accrual                                                                            | -                           |                              | -                     |   | -  |   |
| Payments                                                                           |     -   |                              |    -   |   | (2) |   |
| Balance      At December 31, 2007                                                  | -                           |                              | -                     |   | 8  |   |
| Accrual                                                                            | 34                          |                              | 14                    |   | 14  |   |
| Payments                                                                           |   (6)                  |                              |   (4)            |   | (2) |   |
| Balance      at December 31, 2008                                                  | 28                          |                              | 10                    |   | 20  |   |
| Accrual                                                                            | 5                           |                              | 1                     |   | 10  |   |
| Payments                                                                           | (19)                             |                              | (9)                        |   |  (4) |   |
| Balance      at December 31, 2009                                                  | $ 14                   |                              | $  2        |   | $26 |   |
|                                                                               |                             |                              |                       |   |   |   |
| Cumulative      accruals January 1, 2007  through      December 31, 2009 |  $ 39             |                              |  $ 15       |   |  $24 |   |

----

----

----

----

----

| Year      ending December 31, |             |
|-------------------------------|------------------|
|                          | 2010             | $   693 |   |
|                          | 2011             | 693 |   |
|                          | 2012             | 704 |   |
|                          | 2013             | 683 |   |
|                          | 2014             | 649 |   |
|                          | Later      years |     884 |   |
|                          | Total            | $4,306 |   |

----

----

|                                        | 2009                    | 2008                                        | 2007   |
|---------------------------------------------|-------------------------|---------------------------------------------|--------|
|                                        |                    |                                        |   |
| Operating      Revenue:                     |                    |                                        |   |
|                                        | Mainline                | $10,635                                     |   | $12,827 |   | $12,019 |   |
|                                        | Regional                |   1,951                           |   |   2,414 |   |   2,213 |   |
|                                        | Total      Consolidated | $12,586                                     |   | $15,241 |   | $14,232 |   |
|                                        |                    |                                        |   |   |   |   |
| Depreciation      and amortization expense: |                    |                                        |   |   |   |   |
|                                        | Mainline                | $    481                |   | $    427 |   | $    400 |   |
|                                        | Regional                |       13      |   |       11 |   |       13 |   |
|                                        | Total      Consolidated | $    494                |   | $    438 |   | $    413 |   |
|                                        |                    |                                        |   |   |   |   |
| Special      Charges (Note 13):             |                    |                                        |   |   |   |   |
|                                        | Mainline                | $    125                |   | $    155 |   | $     13 |   |
|                                        | Regional                |       20      |   |       26 |   |         - |   |
|                                        | Total      Consolidated | $     145          |   | $     181 |   | $     13 |   |
|                                        |                    |                                        |   |   |   |   |
| Operating      Income (Loss):               |                    |                                        |   |   |   |   |
|                                        | Mainline                | $    164           |   | $     74 |   | $   848 |   |
|                                        | Regional                |   (310)                           |   |   (388) |   |   (161) |   |
|                                        | Total      Consolidated | $  (146)                          |   | $  (314) |   | $   687 |   |
|                                        |                    |                                        |   |   |   |   |
| Interest      Expense:                      |                    |                                        |   |   |   |   |
|                                        | Mainline                | $  355                            |   | $  363 |   | $  379 |   |
|                                        | Regional                |     12                  |   |     13 |   |     14 |   |
|                                        | Total      Consolidated | $  367                            |   | $  376 |   | $  393 |   |
|                                        |                    |                                        |   |   |   |   |
| Interest      Income:                       |                    |                                        |   |   |   |   |
|                                        | Mainline                | $    12                 |   | $    65 |   | $ 160 |   |
|                                        | Regional                |        - |   |        - |   |       - |   |
|                                        | Total      Consolidated | $     12           |   | $     65 |   | $ 160 |   |
|                                        |                    |                                        |   |   |   |   |
| Income      Tax Benefit (Expense):          |                    |                                        |   |   |   |   |
|                                        | Mainline                | $     42           |   | $    51 |   | $(150) |   |
|                                        | Regional                |    115                       |   |      58 |   |     33 |   |
|                                        | Total      Consolidated | $   157                      |   | $   109 |   | $(117) |   |
|                                        |                    |                                        |   |   |   |   |   |
| Net      Income (Loss):                     |                    |                                        |   |   |   |   |
|                                        | Mainline                | $  (76)                           |   | $ (243) |   | $  581 |   |
|                                        | Regional                | (206)                                       |   | (343) |   | (142) |   |
|                                        | Total      Consolidated | $(282)                                      |   | $(586) |   | $  439 |   |

----

|               | 2009         | 2008   | 2007              |
|--------------------|--------------|--------|-------------------|
|               |         |   |              |
| Domestic           | $ 6,941 |   | $8,327            |   | $8,053 |   |
| Trans-Atlantic     | 2,614        |   | 3,448             |   | 3,065 |   |
| Latin      America | 1,947        |   | 2,283             |   | 1,981 |   |
| Pacific            |  1,084  |   |   1,183 |   |   1,133 |   |
|               |         |   |              |   |   |   |
|               | $12,586      |   | $15,241           |   | $14,232 |   |

----

----

| ·  | a      total of $65 million if our unrestricted cash, cash equivalents and      short-term investments balance falls below $2.0billion;                                                                                                                                                                                             |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·  | a      total of $203 million if we fail to maintain the minimum unsecured debt      ratings specified above;                                                                                                                                                                                                                        |
| ·  | a      total of $387 million if our unrestricted cash, cash equivalents and      short-term investments balance (plus any collateral posted at Chase) falls      below $1.4 billion or if our ratio of unrestricted cash, cash equivalents      and short-term investments to current liabilities falls below 0.25 to 1.0;      and |
| ·  | a      total of $846 million if our unrestricted cash, cash equivalents and      short-term investments balance (plus any collateral posted at Chase) falls      below $1.0 billion or if our ratio of unrestricted cash, cash equivalents      and short-term investments to current liabilities falls below 0.22 to      1.0.     |

----

----

----

|                                          | Three      Months Ended |
|-----------------------------------------------|-------------------------|
|                                          | March      31           | June      30 | September      30 | December      31 |
|                                          |                    |   |   |   |
|                                          |                    |   |   |   |   |   |   |   |
| 2009                                          |                    |   |   |   |   |   |   |
| Operating      revenue                        | $2,962             |   | $3,126  |   | $3,317  |   | $3,182  |   |
| Operating      income (loss)                  | (55)                    |   | (154) |   | 61  |   | 1  |   |
| Nonoperating      income (expense),  net | (81)                    |   | (59) |   | (79) |   | (73) |   |
| Net      income (loss)                        | (136)                   |   | (213) |   | (18) |   | 85  |   |
|                                          |                    |   |   |   |   |   |   |   |
| Earnings      (loss) per share:               |                    |   |   |   |   |   |   |   |
|   Basic                             | $(1.10)                 |   | $(1.72) |   | $(0.14) |   | $  0.61 |   |
|   Diluted                           | $(1.10)                 |   | $(1.72) |   | $(0.14) |   | $  0.60 |   |
|                                          |                    |   |   |   |   |   |   |   |
| 2008                                          |                    |   |   |   |   |   |   |
| Operating      revenue                        | $3,570             |   | $4,044  |   | $4,156  |   | $3,471  |   |
| Operating      loss                           | (66)                    |   | (71) |   | (152) |   | (25) |   |
| Nonoperating      income (expense),  net | (61)                    |   | 22  |   | (98) |   | (242) |   |
| Net      loss                                 | (82)                    |   | (5) |   | (230) |   | (269) |   |
|                                          |                    |   |   |   |   |   |   |   |
| Loss      per share:                          |                    |   |   |   |   |   |   |   |
|   Basic                             | $(0.82)                 |   | $(0.05) |   | $(2.09) |   | $(2.35) |   |
|   Diluted                           | $(0.82)                 |   | $(0.05) |   | $(2.09) |   | $(2.35) |   |
|                                          |                    |   |   |   |   |   |   |   |

----

|                                                                                                       | Three      Months Ended          |
|------------------------------------------------------------------------------------------------------------|----------------------------------|
|                                                                                                       | March      31                    | June      30 | September      30 | December      31 |
|                                                                                                       |                             |   |   |   |
| 2009                                                                                                       |                             |   |   |   |
| Operating      earnings:                                                                                   |                             |   |   |   |
|   Aircraft-related      charges                                                                  | $  (4)                 |   | $(43) |   | $  (6) |   | $ (36) |   |
|   Pension      settlement charges                                                                | -                           |   | -  |   | -  |   | (29) |   |
|   Severance                                                                                      | -                           |   | -  |   | (5) |   | -  |   |
|   Route      impairment                                                                          | -                           |   | -  |   | -  |   | (12) |   |
|   Other                                                                                          |     -        |   |   (1) |   |   (9) |   |       - |   |
|   Total      special charges in operating earnings                                               | $ (4)                       |   | $(44) |   | $(20) |   | $ (77) |   |
|                                                                                                       |                             |   |   |   |
| Additional      special items:                                                                             |                             |   |   |   |
|   Income      tax benefit related to intraperiod    tax      allocation      |  $   -  |   |  $    -  |   |  $    -  |   |  $ 158  |   |
|                                                                                                       |                             |   |   |   |
| 2008                                                                                                       |                             |   |   |   |
| Operating      earnings:                                                                                   |                             |   |   |   |
|   Aircraft-related      charges                                                                  | $   8        |   | $(41) |   | $(12) |   | $     5  |   |
|   Pension      settlement charges                                                                | -                           |   | -  |   | (8) |   | (44) |   |
|   Severance                                                                                      | -                           |   | -  |   | (33) |   | (1) |   |
|   Route      impairment                                                                          | -                           |   | -  |   |  (18) |   | -  |   |
|   Other                                                                                          |     -        |   | (17) |   |  (20) |   |       - |   |
|   Total      special charges in operating earnings                                               | $   8             |   | $(58) |   | $(91) |   | $  (40) |   |
|                                                                                                       |                             |   |   |   |   |   |   |   |
| Additional      special items:                                                                             |                             |   |   |   |   |   |   |   |
|   Gains      on sales of investments                                                             | $   -        |   | $ 78  |   | $    -  |   | $      -  |   |
|   Loss      on fuel hedge contracts with      Lehman      Brothers |  -                     |   |  -  |   |  -  |   |  (125) |   |
|  Other-than-temporary      impairment of    auction      rate securities          |  -                     |   |  (29) |   |  -  |   |  (31) |   |
| Fair      value of auction rate securities put  right      received                              |  -                     |   |  -  |   |  -  |   |  26  |   |
|   Income      tax benefit related to NOL    utilization                      |  -                     |   |  28  |   |  -  |   |  -  |   |

----

----

----

----

----

| (a)   | The      following financial statements are included in Item      8.  "Financial Statements and Supplementary    Data": |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Financial      Statement Schedules: |
|-----------------|-------------------------------------|

| (c)   | See      accompanying Index to Exhibits. |
|-----------------|------------------------------------------|

----

|   | CONTINENTAL      AIRLINES, INC.                                                                                                                                               |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                          |
|   | By      /s/ ZANE C.      ROWE                         |
|   | Zane C. Rowe                                                                                                                                                                  |
|   | Executive Vice President      and                                                                                                                                             |
|   | Chief Financial      Officer                                                                                                                                                  |
|   | (On behalf of      Registrant)                                                                                                                                                |

|                      Signature                      |                         Capacity                          |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                           |
| /s/ JEFFERY A.      SMISEK                                                                                                                                                                                                                        | Chairman,      President, and Chief Executive Officer                                                                                                                                                                                                                                                          |
| Jeffery      A. Smisek                                                                                                                                                                                                                                                | (Principal      Executive Officer)                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                           |
| /s/ ZANE C.      ROWE                                                                                                                              | Executive      Vice President and                                                                                                                                                                                                                                                                              |
| Zane      C. Rowe                                                                                                                                                                                                                                                     | Chief      Financial Officer                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                  | (Principal      Financial Officer)                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                           |
| /s/ CHRIS      KENNY                                                                                                                          | Vice      President and Controller                                                                                                                                                                                                                                                                             |
| Chris      Kenny                                                                                                                                                                                                                                                      | (Principal      Accounting Officer)                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                           |
| KIRBYJON H.      CALDWELL*                                                                                                                                                                                               | Director                                                                                                                                                                                                                                                                                                       |
| Kirbyjon      H. Caldwell                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                           |
| CAROLYN      CORVI*                                                                                                                                | Director                                                                                                                                                                                                                                                                                                       |
| Carolyn      Corvi                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                           |
| DOUGLAS H.      McCORKINDALE*                                                                                                                                                                                                                                    | Director                                                                                                                                                                                                                                                                                                       |
| Douglas      H. McCorkindale                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                           |
| HENRY L. MEYER      III*                                                                                                                                                         | Director                                                                                                                                                                                                                                                                                                       |
| Henry      L. Meyer III                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                           |

----

| OSCAR      MUNOZ*                           | Director |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
| Oscar      Munoz                                                                                                                                                              |     |
|                                                                                                                                                                          |     |
| LAURENCE E.      SIMMONS*                                                                                              | Director |
| Laurence      E. Simmons                                                                                                                                                      |     |
|                                                                                                                                                                          |     |
| KAREN HASTIE      WILLIAMS*                                                                                                                          | Director |
| Karen      Hastie Williams                                                                                                                                                    |     |
|                                                                                                                                                                          |     |
| RONALD B.      WOODARD*                                                                                           | Director |
| Ronald      B. Woodard                                                                                                                                                        |     |
|                                                                                                                                                                          |     |
| CHARLES A.      YAMARONE*                                                                                                                  | Director |
| Charles      A. Yamarone                                                                                                                                                      |     |

| *By    | /s/ Jennifer L.      Vogel |
|--------|---------------------------------|
|   | Jennifer      L. Vogel          |
|   | Attorney-in-fact                |
|   | February      17, 2010          |

----

| 3.1        | Amended      and Restated Certificate of Incorporation of Continental, as amended      through June 6, 2006 - incorporated by reference to Exhibit 3.1 to      Continental's Annual Report on Form 10-K for the year ended December 31,      2006 (File no. 1-10323) (the "2006 10-K").                                                                                                                               |
|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 3.1(a)     | Certificate      of Designation of Series A Junior Participating Preferred Stock, included      as Exhibit A to Exhibit 3.1.                                                                                                                                                                                                                                                                                          |
|       |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 3.1(a)(i)  | Certificate      of Amendment of Certificate of Designation of Series A Junior      Participating Preferred Stock - incorporated by reference to Exhibit      3.1(b) to Continental's Annual Report on Form 10-K for the year ended      December 31, 2001 (File no. 1-10323) (the "2001 10-K").                                                                                                                      |
|       |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 3.1(a)(ii) | Certificate      of Increase - Series A Junior Participating Preferred Stock - incorporated      by reference to Exhibit 3.1(a)(ii) to Continental's Quarterly Report on      Form 10-Q for the period ended June 30, 2008 (File no.      1-10323).                                                                                                                                                                   |
|       |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 3.2        | Amended      and Restated Bylaws of Continental, effective as of June 10, 2009 –      incorporated by reference to Exhibit 3.2 to Continental’s Current Report      on Form 8-K dated June 10, 2009 (File no. 1-10323).                                                                                                                                                                                   |
|       |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 4.1        | Specimen      Class B Common Stock Certificate of Continental - incorporated by      reference to Exhibit 4.1 to Continental's Registration Statement on Form      8-A/A filed November 21, 2008.                                                                                                                                                                                                                     |
|       |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 4.2        | Warrant      Agreement dated as of April 27, 1993, between Continental and Continental      as warrant agent - incorporated by reference to Exhibit 4.7 to      Continental's Current Report on Form 8-K, dated April 16, 1993 (File no.      1-10323).  (No warrants remain outstanding under the agreement,      but some of its terms are incorporated into Continental's stock option      agreements.) |
|       |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 4.3        | Continental      hereby agrees to furnish to the Commission, upon request, copies of      certain instruments defining the rights of holders of long-term debt of      the kind described in Item 601(b)(4)(iii)(A) of Regulation      S-K.                                                                                                                                                                           |
|       |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.1       | Agreement      of Lease dated as of January 11, 1985, between the Port Authority of New      York and New Jersey and People Express, Inc., regarding Terminal C (the      "Terminal C Lease") - incorporated by reference to Exhibit 10.61 to the      Annual Report on Form 10-K (File no. 0-9781) of People Express, Inc. for      the year ended December 31, 1984.                                                |
|       |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.1(a)    | Assignment      of Lease with Assumption and Consent dated as of August 15, 1987, among      the Port Authority of New York and New Jersey, People Express Airlines,      Inc. and Continental - incorporated by reference to Exhibit 10.2 to      Continental's Annual Report on Form 10-K (File no. 1-8475) for the year      ended December 31, 1987 (the "1987 10-K").                                            |
|       |                                                                                                                                                                                                                                                                                                                                                                                                                  |

----

| 10.1(b) | Supplemental      Agreement Nos. 1 through 6 to the Terminal C Lease - incorporated by      reference to Exhibit 10.3 to the 1987 10-K.                                                                                                                                                                                                                                                                                |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.1(c) | Supplemental      Agreement No. 7 to the Terminal C Lease - incorporated by reference to      Exhibit 10.4 to Continental's Annual Report on Form 10-K (File no.      1-10323) for the year ended December 31, 1988 (the "1988      10-K").                                                                                                                                                                            |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.1(d) | Supplemental      Agreements No. 8 through 11 to the Terminal C Lease - incorporated by      reference to Exhibit 10.10 to Continental's Form S-1 Registration      Statement (No. 33-68870).                                                                                                                                                                                                                          |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.1(e) | Supplemental      Agreements No. 12 through 15 to the Terminal C Lease - incorporated by      reference to Exhibit 10.2(d) to Continental's Annual Report on Form 10-K      (File no. 1-10323) for the year ended December 31,1995.                                                                                                                                                                                    |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.1(f) | Supplemental      Agreement No. 16 to the Terminal C Lease - incorporated by reference to      Exhibit 10.1(e) to Continental's Annual Report on Form 10-K for the year      ended December 31, 1997 (File no. 1-10323) (the "1997    10-K").                                                                                                                                                                          |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.1(g) | Supplemental      Agreement No. 17 to the Terminal C Lease - incorporated by reference to      Exhibit 10.1(f) to Continental's Annual Report on Form 10-K for the year      ended December 31, 1999 (File no. 1-10323) (the "1999    10-K").                                                                                                                                                                          |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.1(h) | Supplemental      Agreement No. 18 to the Terminal C Lease - incorporated by reference to      Exhibit 10.5 to the 2003 Q-1 10-Q.                                                                                                                                                                                                                                                                                      |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.1(i) | Supplemental      Agreement No. 19 to the Terminal C Lease - incorporated by reference to      Exhibit 10.4 to Continental's Quarterly Report on Form 10-Q for the      quarter ended June 30, 2003 (File no. 1-10323).                                                                                                                                                                                                |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.1(j) | Supplemental      Agreement No. 20 - to the Terminal C Lease - incorporated by reference to      Exhibit 10.1 to Continental's Quarterly Report on Form 10-Q for quarter      ended September 30, 2003 (File no. 1-10323) (the "2003 Q-3      10-Q").                                                                                                                                                                  |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.1(k) | Supplemental      Agreement No. 21 dated as of June 1, 2003 to Agreement of Lease between      the Company and the Port Authority of New York and New Jersey regarding      Terminal C at Newark Liberty International Airport - incorporated by      reference to Exhibit 10.1 to Continental's Quarterly Report on Form 10-Q      for the quarter ended June 30, 2005 (File no. 1-10323) (the "2005 Q-2      10-Q"). |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.1(l) | Supplemental      Agreement No. 22 - to the Terminal C Lease - incorporated by reference to      Exhibit 10.1 to Continental's Quarterly Report on Form 10-Q for the      quarter ended March 31, 2004 (File no. 1-10323) (the "2004 Q-1      10-Q").                                                                                                                                                                  |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                   |

----

| 10.1(m) | Supplemental      Agreement No. 23 - to the Terminal C Lease - incorporated by reference to      Exhibit 10.1(m) to Continental's Annual Report on Form 10-K for the year      ended December 31, 2005 (File no. 1-10323) (the "2005    10-K").                                                                                                                        |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                   |
| 10.1(n) | Supplemental      Agreement No. 24 - to the Terminal C Lease - incorporated by reference to      Exhibit 10.1(n) to the 2005 10-K.                                                                                                                                                                                                                                     |
|    |                                                                                                                                                                                                                                                                                                                                                                   |
| 10.2    | Airport      Use and Lease Agreement dated as of January 1, 1998 between Continental      and the City of Houston, Texas ("Houston") regarding George Bush      Intercontinental Airport - incorporated by reference to Exhibit 10.30 to      Continental's Annual Report on Form 10-K for the year ended December 31,      1998 (File no. 1-10323) (the "1998 10-K"). |
|    |                                                                                                                                                                                                                                                                                                                                                                   |
| 10.2(a) | Special      Facilities Lease Agreement dated as of March 1, 1997 between Continental      and Houston regarding an automated people mover project at Bush      Intercontinental - incorporated by reference to Exhibit 10.30(a) to the      1998 10-K.                                                                                                                |
|    |                                                                                                                                                                                                                                                                                                                                                                   |
| 10.2(b) | Amended      and Restated Special Facilities Lease Agreement dated as of December 1,      1998 by and between Continental and Houston regarding certain terminal      improvements projects at Bush Intercontinental - incorporated by reference      to Exhibit 10.30(b) to the 1998 10-K.                                                                            |
|    |                                                                                                                                                                                                                                                                                                                                                                   |
| 10.2(c) | Amended      and Restated Special Facilities Lease Agreement dated December 1, 1998 by      and between Continental and Houston regarding certain airport improvement      projects at Bush Intercontinental - incorporated by reference to Exhibit      10.30(c) to the 1998 10-K.                                                                                    |
|    |                                                                                                                                                                                                                                                                                                                                                                   |
| 10.2(d) | Terminal      E Lease and Special Facilities Lease Agreement dated as of August 1, 2001      between Continental and Houston regarding Bush Intercontinental -      incorporated by reference to Exhibit 10.8 to Continental's Quarterly      Report on Form 10-Q for the quarter ended September 30, 2001 (File no.      1-10323) (the "2001 Q-3 10-Q").              |
|    |                                                                                                                                                                                                                                                                                                                                                                   |
| 10.2(e) | Supplement      to Terminal E Lease and Special Facilities Lease Agreement dated as of      August 1, 2001 - incorporated by reference to Exhibit 10.2(e) to      Continental's Annual Report on Form 10-K for the year ended December 31,      2002 (File no. 1-10323) (the "2002 10-K").                                                                             |
|    |                                                                                                                                                                                                                                                                                                                                                                   |
| 10.3    | Agreement      and Lease dated as of May 1987, as supplemented, between Continental and      the City of Cleveland, Ohio ("Cleveland") regarding Hopkins International      Airport - incorporated by reference to Exhibit 10.6 to Continental's      Quarterly Report on Form 10-Q for the quarter ended September 30, 1993      (File no. 1-10323).                  |
|    |                                                                                                                                                                                                                                                                                                                                                                   |
| 10.3(a) | Special      Facilities Lease Agreement dated as of October 24, 1997 by and between      Continental and Cleveland regarding certain concourse expansion projects      at Hopkins International (the "1997 SFLA") - incorporated by reference to      Exhibit 10.31(a) to the 1998 10-K.                                                                               |
|    |                                                                                                                                                                                                                                                                                                                                                                   |

----

| 10.3(b)  | First      Supplemental Special Facilities Lease Agreement dated as of March 1, 1998,      and relating to the 1997 SFLA - incorporated by reference to Exhibit 10.1      to Continental's Quarterly Report on Form 10-Q for the quarter ended March      31, 1999 (File no. 1-10323) (the "1999 Q-1 10-Q").                                                                          |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|     |                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.3(c)  | Special      Facilities Lease Agreement dated as of December 1, 1989 by and between      Continental and Cleveland regarding Hopkins International (the "1989      SFLA") - incorporated by reference to Exhibit 10.1 to Continental's      Quarterly Report on Form 10-Q for the quarter ended September 30, 1999      (File no. 1-10323) (the "1999 Q-3 10-Q").                     |
|     |                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.3(d)  | First      Supplemental Special Facilities Lease Agreement dated as of March 1, 1998,      and relating to the 1989 SFLA - incorporated by reference to Exhibit      10.1(a) to the 1999 Q-3 10-Q.                                                                                                                                                                                    |
|     |                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.3(e)  | Second      Supplemental Special Facilities Lease Agreement dated as of March 1, 1998,      and relating to the 1989 SFLA - incorporated by reference to Exhibit      10.1(b) to the 1999 Q-3 10-Q.                                                                                                                                                                                   |
|     |                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.3(f)  | Amendment      No. 1, dated January 1, 2006, to Agreement and Lease dated as of May 1987,      as supplemented, between Continental and Cleveland regarding Hopkins      International Airport - incorporated by reference to Exhibit 10.3(f) to      the 2005 10-K.                                                                                                                  |
|     |                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.3(g)  | Amendment      No. 2, dated March 25, 2009, to Agreement and Lease dated as of May 1987,      as supplemented, between Continental and Cleveland regarding Hopkins      International Airport – incorporated by reference to Exhibit 10.1 to      Continental’s Quarterly Report on Form 10-Q for the quarter ended June 30,      2009 (the “2009 Q-2 10-Q”). |
|     |                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.3(h)  | Amendment      No. 3, dated April 3, 2009, to Agreement and Lease dated as of May 1987,      as supplemented, between Continental and Cleveland regarding Hopkins      International Airport – incorporated by reference to Exhibit 10.2 to the      2009 Q-2 10-Q.                                                                                                             |
|     |                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.4*    | Employment      Agreement dated as of October 15, 2007 between Continental and Lawrence W.      Kellner - incorporated by reference to Exhibit 10.2 to Continental's Form      10-Q for the quarter ended September 30, 2007 (File no. 1-10323) (the      "2007 Q-3 10-Q").                                                                                                           |
|     |                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.4(a)* | Compensation      Reduction Agreement for Lawrence W. Kellner dated December 22, 2004 -      incorporated by reference to Exhibit 99.1 to Continental's Current Report      on Form 8-K dated December 22, 2004 (File no. 1-10323) (the "12/04      8-K").                                                                                                                            |
|     |                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.4(b)* | Amendment      to Compensation Reduction Agreement for Lawrence W. Kellner dated February      15, 2005 - incorporated by reference to Exhibit 10.1 to Continental's      Quarterly Report on Form 10-Q for the quarter ended March 31, 2005 (File      no. 1-10323) (the "2005 Q-1 10-Q").                                                                                           |
|     |                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.4(c)* | Letter      Agreement dated as of May 30, 2008 between Continental and Larry Kellner -      incorporated by reference to Exhibit 99.2 to Continental's Current Report      on Form 8-K dated June 5, 2008 (the "06/08 8-K").                                                                                                                                                          |
|     |                                                                                                                                                                                                                                                                                                                                                                                  |

----

| 10.5*    | Employment      Agreement dated as of October 15, 2007 between Continental and Jeffery A.      Smisek - incorporated by reference to Exhibit 10.3 to the 2007 Q-3      10-Q.                                                                                                                                                                                                                                                                      |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.5(a)* | Compensation      Reduction Agreement for Jeffery A. Smisek dated December 22, 2004 -      incorporated by reference to Exhibit 99.2 to the 12/04  8-K.                                                                                                                                                                                                                                                                                           |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.5(b)* | Amendment      to Compensation Reduction Agreement for Jeffery A. Smisek dated February      15, 2005 - incorporated by reference to Exhibit 10.2 to the 2005 Q-1      10-Q.                                                                                                                                                                                                                                                                      |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.5(c)* | Letter      Agreement dated as of May 30, 2008 between Continental and Jeffery Smisek      - incorporated by reference to Exhibit 99.3 to the 06/08    8-K.                                                                                                                                                                                                                                                                                       |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.5(d)* | Confidentiality      and Non-Competition Agreement dated April 23, 2009 between Continental and      Jeffery A. Smisek – incorporated by reference to Exhibit 10.1 to      Continental’s Quarterly Report on Form 10-Q for the quarter ended March      31, 2009 (the “2009 Q-1 10-Q”).                                                                                                                                   |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.5(e)* | Letter      Agreement dated as of September 30, 2009 between Continental and Jeffery      Smisek (clarifying certain terms of his Employment Agreement in connection      with his promotion to Chairman, President and CEO on January 1, 2010) –      incorporated by reference to Exhibit 10.1 to Continental’s Quarterly      Report on Form 10-Q for the quarter ended September 30, 2009 (the “2009      Q-3 10-Q”). |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.5(f)* | Letter      Agreement dated as of January 4, 2010 between Continental and Jeffery      Smisek (pursuant to which he waives his salary and annual incentive      pursuant to the terms set forth therein) – incorporated by reference to      Exhibit 99.1 to Continental’s Current Report on Form 8-K dated January 4,      2010.                                                                                                     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.6*    | Employment      Agreement dated as of August 31, 2008 between Continental and Zane Rowe -      incorporated by reference to Exhibit 10.2 to Continental's Form 10-Q for      the quarter ended September 30, 2008 (File no. 1-10323) (the "2008 Q-3      10-Q").                                                                                                                                                                                  |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.6(a)* | Confidentiality      and Non-Competition Agreement dated April 23, 2009 between Continental and      Zane C. Rowe – incorporated by reference to Exhibit 10.2 to the 2009 Q-1      10-Q.                                                                                                                                                                                                                                                    |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.7*    | Employment      Agreement dated as of October 15, 2007 between Continental and Mark J.      Moran - incorporated by reference to Exhibit 10.6 to the 2007 Q-3      10-Q.                                                                                                                                                                                                                                                                          |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.7(a)* | Compensation      Reduction Agreement for Mark J. Moran dated December 22, 2004 -      incorporated by reference to Exhibit 10.7(a) to the 2005    10-K.                                                                                                                                                                                                                                                                                          |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.7(b)* | Amendment      to Compensation Reduction Agreement for Mark J. Moran dated February 15,      2005 - incorporated by reference to Exhibit 10.7(b) to the 2005      10-K.                                                                                                                                                                                                                                                                           |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                              |

----

| 10.7(c)*  | Confidentiality      and Non-Competition Agreement dated April 23, 2009 between Continental and      Mark J. Moran – incorporated by reference to Exhibit 10.4 to the 2009 Q-1      10-Q.                                                                                                                                   |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|      |                                                                                                                                                                                                                                                                                                                              |
| 10.8*     | Employment      Agreement dated as of October 15, 2007 between Continental and James E.      Compton - incorporated by reference to Exhibit 10.4 to the 2007 Q-3      10-Q.                                                                                                                                                       |
|      |                                                                                                                                                                                                                                                                                                                              |
| 10.8(a)*  | Compensation      Reduction Agreement for James E. Compton dated December 22, 2004 - incorporated by      reference to Exhibit 10.8(a) to Continental's Annual Report on Form 10-K      for the year ended December 31, 2004 (File no. 1-10323) (the "2004      10-K").                                                           |
|      |                                                                                                                                                                                                                                                                                                                              |
| 10.8(b)*  | Amendment      to Compensation Reduction Agreement for James E. Compton dated February      15, 2005 - incorporated by reference to Exhibit 10.4 to the 2005 Q-1      10-Q.                                                                                                                                                       |
|      |                                                                                                                                                                                                                                                                                                                              |
| 10.8(c)*  | Confidentiality      and Non-Competition Agreement dated April 23, 2009 between Continental and      James E. Compton – incorporated by reference to Exhibit 10.3 to the 2009      Q-1 10-Q.                                                                                                                                |
|      |                                                                                                                                                                                                                                                                                                                              |
| 10.9*     | Continental      Airlines, Inc. 1998 Stock Incentive Plan ("1998 Incentive Plan") -      incorporated by reference to Exhibit 4.3 to Continental's Form S-8      Registration Statement (No. 333-57297).                                                                                                                          |
|      |                                                                                                                                                                                                                                                                                                                              |
| 10.9(a)*  | Amendment      No. 1 to 1998 Incentive Plan, 1997 Stock Incentive Plan and 1994 Incentive      Equity Plan, dated May 15, 2001 - incorporated by reference to Exhibit      10.2 to Continental's  Quarterly Report on Form 10-Q for the      quarter ended June 30, 2001 (File no. 1-10323) (the "2001 Q-2      10-Q"). |
|      |                                                                                                                                                                                                                                                                                                                              |
| 10.9(b)*  | Amendment      to 1998 Incentive Plan, 1997 Stock Incentive Plan and 1994 Incentive      Equity Plan, dated March 12, 2004 - incorporated by reference to Exhibit      10.5 to the 2004 Q-1 10-Q.                                                                                                                                 |
|      |                                                                                                                                                                                                                                                                                                                              |
| 10.9(c)*  | Form      of Outside Director Stock Option Grant pursuant to the 1998 Incentive Plan      – incorporated by reference to Exhibit 10.12(c) to the 2006      10-K.                                                                                                                                                            |
|      |                                                                                                                                                                                                                                                                                                                              |
| 10.10*    | Continental      Airlines, Inc. Incentive Plan 2000, as amended and restated ("Incentive      Plan 2000") - incorporated by reference to Exhibit 10.1 to      Continental's  Quarterly Report on Form 10-Q for the quarter ended      March 31, 2002 (File no.  1-10323) (the "2002 Q-1    10-Q").                      |
|      |                                                                                                                                                                                                                                                                                                                              |
| 10.10(a)* | Amendment      to Incentive Plan 2000, dated March 12, 2004 - incorporated by reference      to Exhibit 10.6 to the 2004 Q-1 10-Q.                                                                                                                                                                                                |
|      |                                                                                                                                                                                                                                                                                                                              |
| 10.10(b)* | Second      Amendment to Incentive Plan 2000, dated June 6, 2006 - incorporated by      reference to Exhibit 10.1 to Continental's Quarterly Report on Form 10-Q      for the quarter ended June 30, 2006 (File no.  1-10323) (the "2006      Q-2 10-Q").                                                                    |
|      |                                                                                                                                                                                                                                                                                                                              |
| 10.10(c)* | Third      Amendment to Incentive Plan 2000, dated September 14, 2006 - incorporated      by reference to Exhibit 10.1 to Continental's Quarterly Report on Form      10-Q for the quarter ended September 30, 2006 (File no.  1-10323)      (the "2006 Q-3 10-Q").                                                          |

----

|      |                                                                                                                                                                                                                                                                                                                                                          |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.10(d)* | Form      of Outside Director Stock Option Agreement pursuant to Incentive Plan 2000      – incorporated by reference to Exhibit 10.14(b) to the 2000      10-K.                                                                                                                                                                                        |
|      |                                                                                                                                                                                                                                                                                                                                                          |
| 10.10(e)* | Form      of Outside Director Stock Option Grant pursuant to Incentive Plan 2000      (updated form to facilitate electronic delivery) – incorporated by      reference to Exhibit 10.1 to Continental’s Quarterly Report on Form 10-Q      for the quarter ended March 31, 2008 (File no. l1-10323) (the “2008 Q-1      10-Q”).      |
|      |                                                                                                                                                                                                                                                                                                                                                          |
| 10.11*    | Continental      Airlines, Inc. Long-Term Incentive and RSU Program, as amended and      restated through February 18, 2009 (adopted pursuant to Incentive Plan      2000) – incorporated by reference to Exhibit 10.14 to Continental’s Annual      Report on Form 10-K for the year ended December 31, 2008 (the “2008      10-K”). |
|      |                                                                                                                                                                                                                                                                                                                                                          |
| 10.11(a)* | Form      of Award Notice pursuant to Continental Airlines, Inc. Long-Term Incentive      and RSU Program (Profit Based RSU Awards under Incentive Plan 2000) –      incorporated by reference to Exhibit 10.14(a) to the 2008      10-K.                                                                                                               |
|      |                                                                                                                                                                                                                                                                                                                                                          |
| 10.11(b)* | Form      of Award Notice pursuant to Continental Airlines, Inc. Long-Term Incentive      and RSU Program (NLTIP Award under Incentive Plan 2000) - incorporated by      reference to Exhibit 10.16(b) to the 2005 10-K.                                                                                                                                      |
|      |                                                                                                                                                                                                                                                                                                                                                          |
| 10.12*    | Continental      Airlines, Inc. Incentive Plan 2010, as amended and restated February 17,      2010 (the “Incentive Plan 2010”).  (3)                                                                                                                                                                                                   |
|      |                                                                                                                                                                                                                                                                                                                                                          |
| 10.12(a)* | Form      of Non-Employee Director Option Grant Document pursuant to Incentive Plan      2010.  (3)                                                                                                                                                                                                                                                 |
|      |                                                                                                                                                                                                                                                                                                                                                          |
| 10.13*    | Continental      Airlines, Inc. Annual Executive Incentive Program (adopted pursuant to      Incentive Plan 2010) (the “AIP”).  (3)                                                                                                                                                                                                          |
|      |                                                                                                                                                                                                                                                                                                                                                          |
| 10.13(a)* | Form      of Award Notice pursuant to the AIP.  (3)                                                                                                                                                                                                                                                                                                      |
|      |                                                                                                                                                                                                                                                                                                                                                          |
| 10.14*    | Continental      Airlines, Inc. Long-Term Incentive and RSU Program (adopted pursuant to      Incentive Plan 2010) (the “LTIP/RSU Program”). (3)                                                                                                                                                                                             |
|      |                                                                                                                                                                                                                                                                                                                                                          |
| 10.14(a)* | Form      of Award Notice pursuant to the LTIP/RSU Program (Profit Based RSU Award      under Incentive Plan 2010).  (3)                                                                                                                                                                                                                                 |
|      |                                                                                                                                                                                                                                                                                                                                                          |
| 10.14(b)* | Form      of Award Notice pursuant to the LTIP/RSU Program (LTIP Award under      Incentive Plan 2010).  (3)                                                                                                                                                                                                                                             |

----

|     |                                                                                                                                                                                                                                                                                                                                                                                                          |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.15*   | Continental      Airlines, Inc. 2005 Broad Based Employee Stock Option Plan - incorporated      by reference to Exhibit 10.8 to the 2005 Q-1 10-Q.                                                                                                                                                                                                                                                            |
|     |                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.16*   | Continental      Airlines, Inc. 2005 Pilot Supplemental Option Plan - incorporated by      reference to Exhibit 10.9 to the 2005 Q-1 10-Q.                                                                                                                                                                                                                                                                    |
|     |                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.17*   | Continental      Airlines, Inc. Enhanced Profit Sharing Plan, as amended through February      23, 2007  - incorporated by reference to Exhibit 10.19 to the      2006 10-K.                                                                                                                                                                                                                        |
|     |                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.18*   | Continental      Airlines, Inc. Profit Sharing Plan, as adopted February 17, 2010.       (3)                                                                                                                                                                                                                                                                                                             |
|     |                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.19*   | Summary      of Non-Employee Director compensation.  (3)                                                                                                                                                                                                                                                                                                                                                 |
|     |                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.20*   | Form      of Letter Agreement relating to certain flight benefits between      Continental and each of its non-employee      directors.  (3)                                                                                                                                                                                                                                                        |
|     |                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.21    | Amended      and Restated Credit and Guaranty Agreement, dated as of August 3, 2006,      among Continental and Continental Micronesia, Inc., as borrowers and      guarantors, Air Micronesia, Inc., as a guarantor, Merrill Lynch Mortgage      Capital, Inc., as administrative agent, and the lenders party thereto -      incorporated by reference to Exhibit 10.3 to the 2006 Q-3 10-Q.       (1) |
|     |                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.22    | Purchase      Agreement No. 1951, including exhibits and side letters thereto, between      the Company and Boeing, dated July 23, 1996, relating to the purchase of      Boeing 737 aircraft ("P.A. 1951") - incorporated by reference to Exhibit      10.8 to Continental's Quarterly Report on Form 10-Q for the quarter ended      June 30, 1996 (File no. 1-10323).  (1)                       |
|     |                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.22(a) | Supplemental      Agreement No. 1 to P.A. 1951, dated October 10, 1996 - incorporated by      reference to Exhibit 10.14(a) to Continental's Annual Report on Form 10-K      for the year ended December 31, 1996 (File no.      1-1-323).  (1)                                                                                                                                                     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.22(b) | Supplemental      Agreement No. 2 to P.A. 1951, dated March 5, 1997 - incorporated by      reference to Exhibit 10.3 to Continental's Quarterly Report on Form 10-Q      for the quarter ending March 31, 1997 (File no.      1-10323).  (1)                                                                                                                                                        |
|     |                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.22(c) | Supplemental      Agreement No. 3, including exhibit and side letter, to P.A. 1951, dated      July 17, 1997 - incorporated by reference to Exhibit 10.14(c) to the 1997      10-K.  (1)                                                                                                                                                                                                            |
|     |                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.22(d) | Supplemental      Agreement No. 4, including exhibits and side letters, to P.A. 1951, dated      October 10, 1997 - incorporated by reference to Exhibit 10.14(d) to the      1997 10-K.  (1)                                                                                                                                                                                                       |
|     |                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.22(e) | Supplemental      Agreement No. 5, including exhibits and side letters, to P.A. 1951, dated      October 10, 1997 - incorporated by reference to Exhibit 10.1 to      Continental's Quarterly Report on Form 10-Q for the quarter ended June 30,      1998 (File no.1-10323).  (1)                                                                                                                  |

----

|     |                                                                                                                                                                                                                                                                                                     |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.22(f) | Supplemental      Agreement No. 6, including exhibits and side letters, to P.A. 1951, dated      July 30, 1998 - incorporated by reference to Exhibit 10.1 to Continental's      Quarterly Report on Form 10-Q for the quarter ended September 30, 1998      (File no. 1-10323).  (1)          |
|     |                                                                                                                                                                                                                                                                                                     |
| 10.22(g) | Supplemental      Agreement No. 7, including side letters, to P.A. 1951, dated November 12,      1998 - incorporated by reference to Exhibit 10.24(g) to the 1998      10-K.  (1)                                                                                                              |
|     |                                                                                                                                                                                                                                                                                                     |
| 10.22(h) | Supplemental      Agreement No. 8, including side letters, to P.A. 1951, dated December 7,      1998 - incorporated by reference to Exhibit 10.24(h) to the 1998      10-K.  (1)                                                                                                               |
|     |                                                                                                                                                                                                                                                                                                     |
| 10.22(i) | Letter      Agreement No. 6-1162-GOC-131R1 to P.A. 1951, dated March 26, 1998 -      incorporated by reference to Exhibit 10.1 to Continental's Quarterly      Report on Form 10-Q for the quarter ended March 31, 1998 (File no.      1-10323).   (1)                                    |
|     |                                                                                                                                                                                                                                                                                                     |
| 10.22(j) | Supplemental      Agreement No. 9, including side letters, to P.A. 1951, dated February 18,      1999 - incorporated by reference to Exhibit 10.4 to the 1999 Q-1      10-Q.  (1)                                                                                                              |
|     |                                                                                                                                                                                                                                                                                                     |
| 10.22(k) | Supplemental      Agreement No. 10, including side letters, to P.A. 1951, dated March 19,      1999 - incorporated by reference to Exhibit 10.4(a) to the 1999 Q-1      10-Q.  (1)                                                                                                             |
|     |                                                                                                                                                                                                                                                                                                     |
| 10.22(l) | Supplemental      Agreement No. 11, including side letters, to P.A. 1951, dated March 14,      1999 - incorporated by reference to Exhibit 10.4(a) to Continental's      Quarterly Report on Form 10-Q for the quarter ended June 30, 1999 (File      no. 1-10323).  (1)                       |
|     |                                                                                                                                                                                                                                                                                                     |
| 10.22(m) | Supplemental      Agreement No. 12, including side letters, to P.A. 1951, dated July 2, 1999      - incorporated by reference to Exhibit 10.8 to the 1999 Q-3      10-Q.  (1)                                                                                                                  |
|     |                                                                                                                                                                                                                                                                                                     |
| 10.22(n) | Supplemental      Agreement No. 13 to P.A. 1951, dated October 13, 1999 - incorporated by      reference to Exhibit 10.25(n) to the 1999    10-K.  (1)                                                                                                                                         |
|     |                                                                                                                                                                                                                                                                                                     |
| 10.22(o) | Supplemental      Agreement No. 14 to P.A. 1951, dated December 13, 1999 - incorporated by      reference to Exhibit 10.25(o) to the 1999    10-K.  (1)                                                                                                                                        |
|     |                                                                                                                                                                                                                                                                                                     |
| 10.22(p) | Supplemental      Agreement No. 15, including side letters, to P.A. 1951, dated January 13,      2000 - incorporated by reference to Exhibit 10.1 to Continental's      Quarterly Report on Form 10-Q for the quarter ended March 31, 2000 (File      no. 1-10323) (the "2000 Q-1 10-Q").  (1) |
|     |                                                                                                                                                                                                                                                                                                     |
| 10.22(q) | Supplemental      Agreement No. 16, including side letters, to P.A. 1951, dated March 17,      2000 - incorporated by reference to the 2000 Q-1      10-Q.  (1)                                                                                                                                |
|     |                                                                                                                                                                                                                                                                                                     |
| 10.22(r) | Supplemental      Agreement No. 17, including side letters, to P.A. 1951, dated May 16, 2000      - incorporated by reference to Exhibit 10.2 to Continental's Quarterly      Report on Form 10-Q for the quarter ended June 30, 2000 (File no.      1-10323).  (1)                            |

----

|      |                                                                                                                                                                                                                                                                                     |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.22(s)  | Supplemental      Agreement No. 18, including side letters, to P.A. 1951, dated September      11, 2000 - incorporated by reference to Exhibit 10.6 to Continental's      Quarterly Report on Form 10-Q for the quarter ended September 30, 2000      (File no. 1-10323).  (1) |
|      |                                                                                                                                                                                                                                                                                     |
| 10.22(t)  | Supplemental      Agreement No. 19, including side letters, to P.A. 1951, dated October 31,      2000 - incorporated by reference to Exhibit 10.20(t) to the 2000      10-K.  (1)                                                                                              |
|      |                                                                                                                                                                                                                                                                                     |
| 10.22(u)  | Supplemental      Agreement No. 20, including side letters, to P.A. 1951, dated December 21,      2000 - incorporated by reference to Exhibit 10.20(u) to the 2000      10-K.  (1)                                                                                             |
|      |                                                                                                                                                                                                                                                                                     |
| 10.22(v)  | Supplemental      Agreement No. 21, including side letters, to P.A. 1951, dated March 30,      2001 - incorporated by reference to Exhibit 10.1 to Continental's      Quarterly Report on Form 10-Q for the quarter ended March 31, 2001 (File      no. 1-10323).  (1)         |
|      |                                                                                                                                                                                                                                                                                     |
| 10.22(w)  | Supplemental      Agreement No. 22, including side letters, to P.A. 1951, dated May 23,      2001  -  incorporated by reference to Exhibit 10.3 to      the 2001 Q-2 10-Q.  (1)                                                                            |
|      |                                                                                                                                                                                                                                                                                     |
| 10.22(x)  | Supplemental      Agreement No. 23, including side letters, to P.A. 1951, dated June 29,      2001  -  incorporated by reference to Exhibit 10.4 to      the 2001 Q-2  10-Q.  (1)                                                                |
|      |                                                                                                                                                                                                                                                                                     |
| 10.22(y)  | Supplemental      Agreement No. 24, including side letters, to P.A. 1951, dated August 31,      2001 - incorporated by reference to Exhibit 10.11 to the 2001 Q-3      10-Q.  (1)                                                                                              |
|      |                                                                                                                                                                                                                                                                                     |
| 10.22(z)  | Supplemental      Agreement No. 25, including side letters, to P.A. 1951, dated December 31,      2001 - incorporated by reference to Exhibit 10.22(z) to the 2001      10-K.  (1)                                                                                             |
|      |                                                                                                                                                                                                                                                                                     |
| 10.22(aa) | Supplemental      Agreement No. 26, including side letters, to P.A. 1951, dated March 29,      2002 - incorporated by reference to Exhibit 10.4 to the 2002 Q-1      10-Q.  (1)                                                                                                |
|      |                                                                                                                                                                                                                                                                                     |
| 10.22(ab) | Supplemental      Agreement No. 27, including side letters, to P.A. 1951, dated November 6,      2002 - incorporated by reference to Exhibit 10.4 to the 2002 Q-1      10-Q.  (1)                                                                                              |
|      |                                                                                                                                                                                                                                                                                     |
| 10.22(ac) | Supplemental      Agreement No. 28, including side letters, to P.A. 1951, dated April 1,      2003 - incorporated by reference to Exhibit 10.2 to the 2003 Q-1      10-Q.  (1)                                                                                                 |
|      |                                                                                                                                                                                                                                                                                     |
| 10.22(ad) | Supplemental      Agreement No. 29, including side letters, to P.A. 1951, dated August 19,      2003 - incorporated by reference to Exhibit 10.2 to the 2003 Q-3 10-Q.      (1)                                                                                                          |
|      |                                                                                                                                                                                                                                                                                     |
| 10.22(ae) | Supplemental      Agreement No. 30 to P.A. 1951, dated as of November 4, 2003 - incorporated      by reference to Exhibit 10.23(ae) to Continental's Annual Report on Form      10-K for the year ended December 31, 2003 (File no. 1-10323) (the "2003      10-K"). (1)                 |
|      |                                                                                                                                                                                                                                                                                     |

----

| 10.22(af) | Supplemental      Agreement No. 31 to P.A. 1951, dated as of August 20, 2004 - incorporated      by reference to Exhibit 10.4 to Continental's Quarterly Report on Form      10-Q for the quarter ended September 30, 2004 (File no. 1-10323) (the      "2004 Q-3 10-Q"). (1)   |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|      |                                                                                                                                                                                                                                                                            |
| 10.22(ag) | Supplemental      Agreement No. 32 to P.A. 1951, including side letters, dated as of      December 29, 2004 - incorporated by reference to Exhibit 10.21(ag) to the      2004 10-K. (1)                                                                                         |
|      |                                                                                                                                                                                                                                                                            |
| 10.22(ah) | Supplemental      Agreement No. 33 to P.A. 1951, including side letters, dated as of      December 29, 2004 - incorporated by reference to Exhibit 10.21(ah) to the      2004 10-K. (1)                                                                                         |
|      |                                                                                                                                                                                                                                                                            |
| 10.22(ai) | Supplemental      Agreement No. 34 dated June 22, 2005 to P.A. 1951 - incorporated by      reference to Exhibit 10.3 to the 2005 Q-2 10-Q. (1)                                                                                                                                  |
|      |                                                                                                                                                                                                                                                                            |
| 10.22(aj) | Supplemental      Agreement No. 35 dated June 30, 2005 to P.A. 1951 - incorporated by      reference to Exhibit 10.4 to the 2005 Q-2 10-Q. (1)                                                                                                                                  |
|      |                                                                                                                                                                                                                                                                            |
| 10.22(ak) | Supplemental      Agreement No. 36 dated July 28, 2005 to P.A. 1951 - incorporated by      reference to Exhibit 10.1 to Continental's Quarterly Report on Form 10-Q      for the quarter ended September 30, 2005 (File no. 1-10323) (the "2005 Q-3      10-Q").  (1) |
|      |                                                                                                                                                                                                                                                                            |
| 10.22(al) | Supplemental      Agreement No. 37 dated March 30, 2006, to P.A. 1951 - incorporated by      reference to Exhibit 10.2 to Continental's Quarterly Report on Form 10-Q      for the quarter ended March 31, 2006 (File no. 1-10323) (the "2006 Q-1      10-Q").  (1)   |
|      |                                                                                                                                                                                                                                                                            |
| 10.22(am) | Supplemental      Agreement No. 38, dated June 6, 2006, to P.A. 1951 - incorporated by      reference to Exhibit 10.3 to the 2006 Q-2    10-Q.  (1)                                                                                                                   |
|      |                                                                                                                                                                                                                                                                            |
| 10.22(an) | Supplemental      Agreement No. 39, dated August 3, 2006, to P.A. 1951 - incorporated by      reference to Exhibit 10.4 to the 2006 Q-3 10-Q. (1)                                                                                                                          |
|      |                                                                                                                                                                                                                                                                            |
| 10.22(ao) | Supplemental      Agreement No. 40, dated December 5, 2006, to P.A. 1951  -      incorporated by reference to Exhibit 10.23(ao) to the 2006      10-K.  (1)                                                                                                 |
|      |                                                                                                                                                                                                                                                                            |
| 10.22(ap) | Supplemental      Agreement No. 41, dated June 1, 2007, to P.A. 1951 - incorporated by      reference to Exhibit 10.1 to Continental's Quarterly Report on Form 10-Q      for the quarter ended June 30, 2007 (File no. 1-10323) (the "2007 Q-2      10-Q").  (1)     |
|      |                                                                                                                                                                                                                                                                            |
| 10.22(aq) | Supplemental      Agreement No. 42, dated June 12, 2007, to P.A. 1951 - incorporated by      reference to Exhibit 10.2 to the 2007 Q-2 10-Q.  (1)                                                                                                                          |
|      |                                                                                                                                                                                                                                                                            |
| 10.22(ar) | Supplemental      Agreement No. 43, dated July 18, 2007 to P.A. 1951 - incorporated by      reference to Exhibit 10.1 to the 2007 Q-3    10-Q.  (1)                                                                                                                   |
|      |                                                                                                                                                                                                                                                                            |

----

| 10.22(as) | Supplemental      Agreement No. 44, dated December 7, 2007, to P.A. 1951 - incorporated by      reference to Exhibit 10.21(as) to Continental's Annual Report on Form 10-K      for the year ended December 31, 2007 (File no. 1-10323) (the "2007      10-K").  (1)            |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|      |                                                                                                                                                                                                                                                                                      |
| 10.22(at) | Supplemental      Agreement No. 45, dated February 20, 2008, to P.A. 1951 - incorporated by      reference to Exhibit 10.2 to the 2008 Q-1    10-Q.  (1)                                                                                                                        |
|      |                                                                                                                                                                                                                                                                                      |
| 10.22(au) | Supplemental      Agreement No. 46, dated June 25, 2008, to P.A. 1951 - incorporated by      reference to Exhibit 10.5 to the 2008 Q-2    10-Q.  (1)                                                                                                                            |
|      |                                                                                                                                                                                                                                                                                      |
| 10.22(av) | Supplemental      Agreement No. 47, dated October 30, 2008, to P.A. 1951 – incorporated by      reference to Exhibit 10.21(av) to the 2008 10-K. (1)                                                                                                                                |
|      |                                                                                                                                                                                                                                                                                      |
| 10.22(aw) | Supplemental      Agreement No. 48, dated January 29, 2009, to P.A. 1951 – incorporated by      reference to Exhibit 10.3 to the 2009 Q-2 10-Q.(1)                                                                                                                                  |
|      |                                                                                                                                                                                                                                                                                      |
| 10.22(ax) | Supplemental      Agreement No. 49, dated May 1, 2009, to P.A. 1951 – incorporated by      reference to Exhibit 10.4 to the 2009 Q-2 10-Q.(1)                                                                                                                                       |
|      |                                                                                                                                                                                                                                                                                      |
| 10.22(ay) | Supplemental      Agreement No. 50, dated July 23, 2009, to P.A. 1951 – incorporated by      reference to Exhibit 10.2 to Continental’s Quarterly Report on Form 10-Q      for the quarter ended September 30, 2009 (the “2009 Q-3      10-Q”).(1)                |
|      |                                                                                                                                                                                                                                                                                      |
| 10.22(az) | Supplemental      Agreement No. 51, dated August 5, 2009, to P.A. 1951 – incorporated by      reference to Exhibit 10.3 to the 2009 Q-3 10-Q. (1)                                                                                                                                   |
|      |                                                                                                                                                                                                                                                                                      |
| 10.22(ba) | Supplemental      Agreement No. 52, dated August 31, 2009, to P.A. 1951 – incorporated by      reference to Exhibit 10.4 to the 2009 Q-3 10-Q. (1)                                                                                                                                  |
|      |                                                                                                                                                                                                                                                                                      |
| 10.22(bb) | Supplemental      Agreement No. 53, dated December 23, 2009, to P.A. 1951.      (2)(3)                                                                                                                                                                                                    |
|      |                                                                                                                                                                                                                                                                                      |
| 10.23     | Aircraft      General Terms Agreement between the Company and Boeing, dated October 10,      1997 - incorporated by reference to Exhibit 10.15 to the 1997      10-K.  (1)                                                                                                      |
|      |                                                                                                                                                                                                                                                                                      |
| 10.23(a)  | Letter      Agreement No. 6-1162-GOC-136 between the Company and Boeing, dated October      10, 1997, relating to certain long-term aircraft purchase commitments of      the Company - incorporated by reference to Exhibit 10.15(a) to the 1997      10-K.  (1)               |
|      |                                                                                                                                                                                                                                                                                      |
| 10.24     | Purchase      Agreement No. 2061, including exhibits and side letters, between the      Company and Boeing, dated October 10, 1997, relating to the purchase of      Boeing 777 aircraft ("P.A. 2061") - incorporated by reference to Exhibit      10.17 to the 1997 10-K.  (1) |
|      |                                                                                                                                                                                                                                                                                      |
| 10.24(a)  | Supplemental      Agreement No. 1 to P.A. 2061 dated December 18, 1997 - incorporated by      reference to Exhibit 10.17(a) as to the 1997      10-K.  (1)                                                                                                                      |

----

|     |                                                                                                                                                                                                                                                                        |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.24(b) | Supplemental      Agreement No. 2, including side letter, to P.A. 2061, dated July 30, 1998      - incorporated by reference to Exhibit 10.27(b) to the 1998      10-K.  (1)                                                                                      |
|     |                                                                                                                                                                                                                                                                        |
| 10.24(c) | Supplemental      Agreement No. 3, including side letter, to P.A. 2061, dated September 25,      1998 - incorporated by reference to Exhibit 10.27(c) to the 1998      10-K.  (1)                                                                                 |
|     |                                                                                                                                                                                                                                                                        |
| 10.24(d) | Supplemental      Agreement No. 4, including side letter, to P.A. 2061, dated February 3,      1999 - incorporated by reference to Exhibit 10.5 to the 1999 Q-1      10-Q.  (1)                                                                                   |
|     |                                                                                                                                                                                                                                                                        |
| 10.24(e) | Supplemental      Agreement No. 5, including side letter, to P.A. 2061, dated March 26, 1999      - incorporated by reference to Exhibit 10.5(a) to the 1999 Q-1      10-Q.  (1)                                                                                  |
|     |                                                                                                                                                                                                                                                                        |
| 10.24(f) | Supplemental      Agreement No. 6 to P.A. 2061, dated June 25, 2002 - incorporated by      reference to Exhibit 10.12 to Continental's Quarterly Report on Form 10-Q      for the quarter ended June 30, 2002 (File no. 1-10323) (the "2002 Q-2      10-Q").  (1) |
|     |                                                                                                                                                                                                                                                                        |
| 10.24(g) | Supplemental      Agreement No. 7, including side letter, to P.A. 2061, dated October 31,      2000 - incorporated by reference to Exhibit 10.23(g) to the 2000      10-K.  (1)                                                                                   |
|     |                                                                                                                                                                                                                                                                        |
| 10.24(h) | Supplemental      Agreement No. 8, including a side letter, to P.A. 2061, dated June 29,      2001 - incorporated by reference to Exhibit 10.5 to the 2001 Q-2      10-Q.  (1)                                                                                    |
|     |                                                                                                                                                                                                                                                                        |
| 10.24(i) | Supplemental      Agreement No. 9 to P.A. 2061, dated June 25, 2002 - incorporated by      reference to Exhibit 10.12 to the 2002 Q-2      10-Q.  (1)                                                                                                             |
|     |                                                                                                                                                                                                                                                                        |
| 10.24(j) | Supplemental      Agreement No. 10 to P.A. 2061, dated November 4, 2003 - incorporated by      reference to Exhibit 10.26(j) to the 2003 10-K. (1)                                                                                                                          |
|     |                                                                                                                                                                                                                                                                        |
| 10.24(k) | Supplemental      Agreement No. 11 to P.A. 2061, dated July 28, 2005 - incorporated by      reference to Exhibit 10.2 to the 2005 Q-3 10-Q. (1)                                                                                                                             |
|     |                                                                                                                                                                                                                                                                        |
| 10.24(l) | Supplemental      Agreement No. 12 to P.A. 2061, dated March 17, 2006 - incorporated by      reference to Exhibit 10.3 to the 2006 Q-1    10-Q.  (1)                                                                                                              |
|     |                                                                                                                                                                                                                                                                        |
| 10.24(m) | Supplemental      Agreement No. 13, dated December 3, 2007, to P.A. 2061 - incorporated by      reference to Exhibit 10.23(m) to the 2007    10-K.  (1)                                                                                                           |
|     |                                                                                                                                                                                                                                                                        |
| 10.24(n) | Supplemental      Agreement No. 14 to P.A. 2061, dated February 20, 2008 - incorporated by      reference to Exhibit 10.3 to the 2008 Q-1    10-Q.  (1)                                                                                                           |
|     |                                                                                                                                                                                                                                                                        |
| 10.24(o) | Supplemental      Agreement No. 15, dated October 15, 2008, to P.A. 2061 - incorporated by      reference to Exhibit 10.5 to the 2009 Q-2    10-Q.  (1)                                                                                                           |
|     |                                                                                                                                                                                                                                                                        |

----

| 10.24(p) | Supplemental      Agreement No. 16, dated May 1, 2009, to P.A. 2061 - incorporated by      reference to Exhibit 10.6 to the 2009 Q-2    10-Q.  (1)                                                                                                                                                |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|     |                                                                                                                                                                                                                                                                                                        |
| 10.24(q) | Supplemental      Agreement No. 17, dated August 31, 2009, to P.A. 2061 - incorporated by      reference to Exhibit 10.5 to the 2009 Q-3    10-Q.  (1)                                                                                                                                            |
|     |                                                                                                                                                                                                                                                                                                        |
| 10.24(r) | Supplemental      Agreement no. 18, dated December 23, 2009, to P.A.      2061.  (2)(3)                                                                                                                                                                                                           |
|     |                                                                                                                                                                                                                                                                                                        |
| 10.25    | Letter      Agreement 6-1162-CHL-048 between the Company and Boeing, dated February 8,      2002, amending P.A. 1951, 2333, 2211, 2060 and 2061 - incorporated by      reference to Exhibit 10.44 to the 2001  10-K.  (1)                                                                         |
|     |                                                                                                                                                                                                                                                                                                        |
| 10.26    | Purchase      Agreement No. 2484, including exhibits and side letters, between the      Company and Boeing, dated December 29, 2004, relating to the purchase of      Boeing 7E7 aircraft (now known as 787 aircraft) ("P.A. 2484") - incorporated by      reference to Exhibit 10.27 to the 2004 10-K. (1) |
|     |                                                                                                                                                                                                                                                                                                        |
| 10.26(a) | Supplemental      Agreement No. 1 to P.A. 2484, dated June 30, 2005 - incorporated by      reference to Exhibit 10.5 to the 2005 Q-2 10-Q. (1)                                                                                                                                                              |
|     |                                                                                                                                                                                                                                                                                                        |
| 10.26(b) | Supplemental      Agreement No. 2, including exhibits and side letters, to P.A. 2484, dated      January 20, 2006 - incorporated by reference to Exhibit 10.27(b) to the      2005 10-K. (1)                                                                                                                |
|     |                                                                                                                                                                                                                                                                                                        |
| 10.26(c) | Supplemental      Agreement No. 3, dated May 3, 2006, to P.A. 2484 - incorporated by      reference to Exhibit 10.4 to the 2006 Q-2 10-Q.  (1)                                                                                                                                                         |
|     |                                                                                                                                                                                                                                                                                                        |
| 10.26(d) | Supplemental      Agreement No. 4, dated July 14, 2006, to P.A. 2484 - incorporated by      reference to Exhibit 10.5 to the 2006 Q-3    10-Q.  (1)                                                                                                                                               |
|     |                                                                                                                                                                                                                                                                                                        |
| 10.26(e) | Supplemental      Agreement No. 5, dated March 12, 2007, to P.A. 2484 - incorporated by      reference to Exhibit 10.1 to Continental's Quarterly Report on Form 10-Q      for the quarter ended March 31, 2007 (File no.      1-10323).   (1)                                               |
|     |                                                                                                                                                                                                                                                                                                        |
| 10.26(f) | Supplemental      Agreement No. 6, dated October 22, 2008, to P.A. 2484 – incorporated by      reference to Exhibit 10.25(f) to the 2008 10-K. (1)                                                                                                                                                    |
|     |                                                                                                                                                                                                                                                                                                        |
| 10.27    | Amended      and Restated Letter Agreement No. 11 between Continental and General      Electric Company, dated August 8, 2005, relating to certain long-term      engine purchase commitments of Continental - incorporated by reference to      Exhibit 10.3 to the 2005 Q-3 10-Q.  (1)               |
|     |                                                                                                                                                                                                                                                                                                        |
| 10.28    | Standstill      Agreement dated as of November 15, 2000 among the Company, Northwest      Airlines Holdings Corporation, Northwest Airlines Corporation and      Northwest Airlines, Inc. - incorporated by reference to Exhibit 99.8 to      the 11/00 8-K.                                                |
|     |                                                                                                                                                                                                                                                                                                        |

----

| 10.29    | Second      Amended and Restated Capacity Purchase Agreement ("XJT Capacity Purchase      Agreement") among Continental, ExpressJet Holdings, Inc., XJT Holdings,      Inc. and ExpressJet Airlines, Inc. dated June 5, 2008 - incorporated by      reference to Exhibit 10.4 to the 2008 Q-2 10-Q. (1)                |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|     |                                                                                                                                                                                                                                                                                                                   |
| 10.29(a) | First      Amendment to the XJT Capacity Purchase Agreement, dated as of August 29,      2008 - incorporated by reference to Exhibit 10.1 to the 2008 Q-3      10-Q.                                                                                                                                                   |
|     |                                                                                                                                                                                                                                                                                                                   |
| 10.29(b) | Second      Amendment to the XJT Capacity Purchase Agreement, dated as of December 23,      2008–      incorporated by reference to Exhibit 10.28(b) to the 2008 10-K.      (1)                                                                                                                                  |
|     |                                                                                                                                                                                                                                                                                                                   |
| 10.29(c) | Third      Amendment to the XJT Capacity Purchase Agreement, dated as of December 22,      2009.  (2) (3)                                                                                                                                                                                                    |
|     |                                                                                                                                                                                                                                                                                                                   |
| 10.30    | Agreement      between the Company and the United States of America, acting through the      Transportation Security Administration, dated May 7, 2003 - incorporated      by reference to Exhibit 10.1 to Continental's Quarterly Report on Form      10-Q for the quarter ended June 30, 2003 (File no.    1-10323). |
|     |                                                                                                                                                                                                                                                                                                                   |
| 21.1     | List      of Subsidiaries of Continental.  (3)                                                                                                                                                                                                                                                               |
|     |                                                                                                                                                                                                                                                                                                                   |
| 23.1     | Consent      of Ernst & Young LLP.  (3)                                                                                                                                                                                                                                                                  |
|     |                                                                                                                                                                                                                                                                                                                   |
| 24.1     | Powers      of attorney executed by certain directors and officers of      Continental.  (3)                                                                                                                                                                                                                 |
|     |                                                                                                                                                                                                                                                                                                                   |
| 31.1     | Rule      13a-14(a)/15d-14(a) Certification of Chief Executive      Officer.  (3)                                                                                                                                                                                                                            |
|     |                                                                                                                                                                                                                                                                                                                   |
| 31.2     | Rule      13a-14(a)/15d-14(a) Certification of Chief Financial      Officer.  (3)                                                                                                                                                                                                                            |
|     |                                                                                                                                                                                                                                                                                                                   |
| 32.1     | Section      1350 Certifications.  (4)                                                                                                                                                                                                                                                                       |

| (1)   | The      Commission has granted confidential treatment for a portion of this      exhibit. |
|-----------------|--------------------------------------------------------------------------------------------|

| (2)   | Continental      has applied to the Commission for confidential treatment of a portion of      this exhibit. |
|-----------------|--------------------------------------------------------------------------------------------------------------|

| (3)   | Filed      herewith. |
|-----------------|----------------------|

| (4)   | Furnished      herewith. |
|-----------------|--------------------------|