|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| UNITED      STATES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| SECURITIES      AND EXCHANGE COMMISSION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| WASHINGTON,      D.C.  20549                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|  FORM      10-Q                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|  (Mark      One)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|  [X]     QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|      THE      SECURITIES EXCHANGE ACT OF 1934                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|  FOR      THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | (I.R.S.      Employer |   |
| of      incorporation or organization)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Identification      No.) |   |
|  1600      Smith Street, Dept. HQSEO                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Houston,      Texas  77002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (Address      of principal executive offices)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (Zip      Code)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|  713-324-2950                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| (Registrant's      telephone number, including area code)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|  Indicate by check mark whether      registrant (1) has filed all reports required to be filed by Section 13 or      15(d) of the Securities Exchange Act of 1934 during the preceding 12      months (or for such shorter period that the registrant was required to      file such reports), and (2) has been subject to such filing requirements      for the past 90 days.  Yes    X     No      _____ Indicate by check mark whether      the registrant has submitted electronically and posted on its corporate      Web site, if any, every Interactive Data File required to be submitted and      posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this      chapter) during the preceding 12 months (or for such shorter period that      the registrant was required to submit and post such      files).    Yes          No      _____ Indicate by check mark whether      the registrant is a large accelerated filer, an accelerated filer, a      non-accelerated filer or a smaller reporting company.  See the      definitions of “large accelerated filer,” “accelerated filer” and “smaller      reporting company” in Rule 12b-2 of the Exchange Act.  Large      accelerated filer   X     Acceleratedfiler      ___   Non-accelerated filer ___   Smaller      reporting company ___(Do not check if a      smaller reporting      company) Indicate by check mark whether      the registrant is a shell company (as defined in Rule 12b-2 of the      Exchange Act).  Yes           No        X   |

----

|          |                                                                                           | PAGE     |
|---------------|------------------------------------------------------------------------------------------------|----------|
|          |                                                                                           |     |
| PART      I   | FINANCIAL      INFORMATION                                                                     |     |
|          |                                                                                           |     |
| Item      1.  | Financial      Statements      -                                                               |     |
|          |                                                                                           |     |
|          | Consolidated      Statements of Operations                                                | 4        |
|          |                                                                                           |     |
|          | Consolidated      Balance Sheets      -                                                        |     |
|          | Assets                                                                                         | 5        |
|          | Liabilities and      Stockholders'      Equity                                                 | 6        |
|          |                                                                                           |     |
|          | Condensed      Consolidated Statements of Cash      Flows                                      | 7        |
|          |                                                                                           |     |
|          | Notes to      Consolidated Financial Statements                                           | 8        |
|          |                                                                                           |     |
| Item      2.  | Management's Discussion and Analysis of Financial      Conditionand Results      of Operations |  33 |
|          |                                                                                           |     |
| Item      3.  | Quantitative and      Qualitative Disclosures about Market Risk                                | 53       |
|          |                                                                                           |     |
| Item      4.  | Controls and Procedures                                                                        | 55       |
|          |                                                                                           |     |
| PART      II  | OTHER      INFORMATION                                                                         |     |
|          |                                                                                           |     |
| Item      1.  | Legal Proceedings                                                                              | 55       |
|          |                                                                                           |     |
| Item      1A. | Risk      Factors                                                                              | 56       |
|          |                                                                                           |     |
| Item      2.  | Unregistered Sales of      Equity Securities and Use of      Proceeds                          | 58       |
|          |                                                                                           |     |
| Item      3.  | Defaults Upon Senior      Securities                                                           | 58       |
|          |                                                                                           |     |
| Item      4.  | Submission of Matters to      a Vote of Security      Holders                                  | 58       |
|          |                                                                                           |     |
| Item      5.  | Other Information                                                                              | 58       |
|          |                                                                                           |     |
| Item      6.  | Exhibits                                                                                       | 59       |
|          |                                                                                           |     |
|          | Signatures                                                                                     | 60       |
|          |                                                                                           |     |
|          | Index to      Exhibits                                                                         | 61       |

----

Item 1.  FinancialStatements.

CONSOLIDATED STATEMENTS OFOPERATIONS

|                                                                                           |   | Three      MonthsEnded September      30, |   |   | Nine      MonthsEnded September      30, |   |
|------------------------------------------------------------------------------------------------|--------|-------------------------------------------|--------|--------|------------------------------------------|--------|
|                                                                                           |   | 2009                                      |   |   | 2008                                     |   |   | 2009 |   |   | 2008 |   |
|                                                                                           |   |                                      |   |   |                                     |   |   |   |   |   |   |   |
| Operating      Revenue:                                                                        |   |                                      |   |   |                                     |   |
| Passenger      (excluding fees and taxes of $397, $402, $1,121, and $1,186,      respectively) |   | $                                         | 2,947  |   |                                     | $      | 3,760 |   |   | $ | 8,331 |   |   | $ | 10,633 |   |
| Cargo                                                                                          |   |                                      | 92     |   |                                     |   | 129 |   |   |   | 259 |   |   |   | 383 |   |
| Other                                                                                          |   |                                      | 278    |   |                                     |   | 267 |   |   |   | 814 |   |   |   | 755 |   |
| Total      Operating Revenue                                                                   |   |                                      | 3,317  |   |                                     |   | 4,156 |   |   |   | 9,404 |   |   |   | 11,771 |   |
|                                                                                           |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Operating      Expenses:                                                                       |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Aircraft      fuel and related taxes                                                           |   |                                      | 881    |   |                                     |   | 1,807 |   |   |   | 2,507 |   |   |   | 4,722 |   |
| Wages,      salaries and related costs                                                         |   |                                      | 794    |   |                                     |   | 765 |   |   |   | 2,358 |   |   |   | 2,197 |   |
| Aircraft      rentals                                                                          |   |                                      | 233    |   |                                     |   | 244 |   |   |   | 705 |   |   |   | 736 |   |
| Landing      fees and other rentals                                                            |   |                                      | 222    |   |                                     |   | 225 |   |   |   | 647 |   |   |   | 643 |   |
| Regional      capacity purchase, net                                                           |   |                                      | 211    |   |                                     |   | 247 |   |   |   | 641 |   |   |   | 838 |   |
| Distribution      costs                                                                        |   |                                      | 160    |   |                                     |   | 182 |   |   |   | 467 |   |   |   | 558 |   |
| Maintenance,      materials and repairs                                                        |   |                                      | 159    |   |                                     |   | 152 |   |   |   | 473 |   |   |   | 478 |   |
| Depreciation      and amortization                                                             |   |                                      | 124    |   |                                     |   | 112 |   |   |   | 353 |   |   |   | 327 |   |
| Passenger      services                                                                        |   |                                      | 99     |   |                                     |   | 113 |   |   |   | 282 |   |   |   | 315 |   |
| Special      charges                                                                           |   |                                      | 20     |   |                                     |   | 91 |   |   |   | 68 |   |   |   | 141 |   |
| Other                                                                                          |   |                                      | 353    |   |                                     |   | 370 |   |   |   | 1,050 |   |   |   | 1,105 |   |
| Total      Operating Expenses                                                                  |   |                                      | 3,256  |   |                                     |   | 4,308 |   |   |   | 9,551 |   |   |   | 12,060 |   |
|                                                                                           |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Operating      Income (Loss)                                                                   |   |                                      | 61     |   |                                     |   | (152 | ) |   |   | (147 | ) |   |   | (289 | ) |
|                                                                                           |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Nonoperating      Income (Expense):                                                            |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Interest      expense                                                                          |   |                                      | (91    | )      |                                     |   | (95 | ) |   |   | (274 | ) |   |   | (279 | ) |
| Interest      capitalized                                                                      |   |                                      | 8      |   |                                     |   | 8 |   |   |   | 25 |   |   |   | 25 |   |
| Interest      income                                                                           |   |                                      | 2      |   |                                     |   | 16 |   |   |   | 10 |   |   |   | 56 |   |
| Gain      on sale of investments                                                               |   |                                      | -      |   |                                     |   | - |   |   |   | - |   |   |   | 78 |   |
| Other-than-temporary      impairment losses on investments                                     |   |                                      | -      |   |                                     |   | - |   |   |   | - |   |   |   | (29 | ) |
| Other,      net                                                                                |   |                                      | 2      |   |                                     |   | (27 | ) |   |   | 19 |   |   |   | 11 |   |
| Total      Nonoperating Income (Expense)                                                       |   |                                      | (79    | )      |                                     |   | (98 | ) |   |   | (220 | ) |   |   | (138 | ) |
|                                                                                           |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Loss      before Income Taxes                                                                  |   |                                      | (18    | )      |                                     |   | (250 | ) |   |   | (367 | ) |   |   | (427 | ) |
|                                                                                           |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Income      Tax Benefit                                                                        |   |                                      | -      |   |                                     |   | 20 |   |   |   | - |   |   |   | 110 |   |
|                                                                                           |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Net      Loss                                                                                  |   | $                                         | (18    | )      |                                     | $      | (230 | ) |   | $ | (367 | ) |   | $ | (317 | ) |
|                                                                                           |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic      and Diluted Loss per Share                                                          |   | $                                         | (0.14  | )      |                                     | $      | (2.09 | ) |   | $ | (2.91 | ) |   | $ | (3.08 | ) |
|                                                                                           |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Shares      Used for Basic and Diluted Computation                                             |   |                                      | 132    |   |                                     |   | 110 |   |   |   | 126 |   |   |   | 103 |   |

----

CONTINENTAL AIRLINES, INC.

|                                                                         |   | September      30, |     |   | December      31, |   |     | September      30, |   |
|------------------------------------------------------------------------------|--------|--------------------|----------|--------|-------------------|--------|----------|--------------------|--------|
| ASSETS                                                                       |   | 2009               |     |   | 2008              |   |     | 2008               |   |
|                                                                         |   | (Unaudited)        |     |   |              |   |     | (Unaudited)        |   |
|                                                                         |   |               |     |   |              |   |     |               |   |
| Current      Assets:                                                         |   |               |     |   |              |   |     |               |   |
| Cash      and cash equivalents                                               |   | $                  | 2,313    |   |              | $      | 2,165    |               |   | $ | 2,411 |   |
| Short-term      investments                                                  |   |               | 229      |   |              |   | 478      |               |   |   | 475 |   |
| Total      unrestricted cash, cash equivalents and short-term    investments |   |               | 2,542    |   |              |   | 2,643    |               |   |   | 2,886 |   |
|                                                                         |   |               |     |   |              |   |     |               |   |   |   |   |
| Restricted      cash, cash equivalents and short-term investments            |   |               | 164      |   |              |   | 190      |               |   |   | 164 |   |
| Accounts      receivable, net                                                |   |               | 549      |   |              |   | 453      |               |   |   | 652 |   |
| Spare      parts and supplies, net                                           |   |               | 245      |   |              |   | 235      |               |   |   | 311 |   |
| Deferred      income taxes                                                   |   |               | 180      |   |              |   | 216      |               |   |   | 217 |   |
| Prepayments      and other                                                   |   |               | 435      |   |              |   | 610      |               |   |   | 483 |   |
| Total      current assets                                                    |   |               | 4,115    |   |              |   | 4,347    |               |   |   | 4,713 |   |
|                                                                         |   |               |     |   |              |   |     |               |   |   |   |   |
| Property      and Equipment:                                                 |   |               |     |   |              |   |     |               |   |   |   |   |
| Owned      property and equipment:                                           |   |               |     |   |              |   |     |               |   |   |   |   |
| Flight      equipment                                                        |   |               | 8,807    |   |              |   | 8,446    |               |   |   | 8,170 |   |
| Other                                                                        |   |               | 1,755    |   |              |   | 1,694    |               |   |   | 1,673 |   |
| Flight      equipment and other                                              |   |               | 10,562   |   |              |   | 10,140   |               |   |   | 9,843 |   |
| Less:  Accumulated      depreciation                               |   |               | 3,444    |   |              |   | 3,229    |               |   |   | 3,061 |   |
| Owned      property and equipment, net                                       |   |               | 7,118    |   |              |   | 6,911    |               |   |   | 6,782 |   |
|                                                                         |   |               |     |   |              |   |     |               |   |   |   |   |
| Purchase      deposits for flight equipment                                  |   |               | 226      |   |              |   | 275      |               |   |   | 319 |   |
|                                                                         |   |               |     |   |              |   |     |               |   |   |   |   |
| Capital      leases                                                          |   |               | 195      |   |              |   | 194      |               |   |   | 190 |   |
| Less:  Accumulated      amortization                               |   |               |  60 |   |              |   |  53 |               |   |   |  51 |   |
| Capital      leases, net                                                     |   |               | 135      |   |              |   | 141      |               |   |   | 139 |   |
| Total      property and equipment, net                                       |   |               | 7,479    |   |              |   | 7,327    |               |   |   | 7,240 |   |
|                                                                         |   |               |     |   |              |   |     |               |   |   |   |   |
| Routes      and airport operating rights, net                                |   |               | 794      |   |              |   | 804      |               |   |   | 785 |   |
| Investment      in student loan-related auction rate securities, long-term   |   |               | -        |   |              |   | -        |               |   |   | 130 |   |
| Other      assets, net                                                       |   |               | 208      |   |              |   | 208      |               |   |   | 194 |   |
|                                                                         |   |               |     |   |              |   |     |               |   |   |   |   |
| Total      Assets                                                            |   | $                  | 12,596   |   |              | $      | 12,686   |               |   | $ | 13,062 |   |

----

| LIABILITIES AND                                                                                                          |   | September      30, |   |   | December      31, |   |   | September      30, |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|--------|--------------------|--------|
| STOCKHOLDERS'      EQUITY                                                                                                |   | 2009               |   |   | 2008              |   |   | 2008               |   |
|                                                                                                                     |   | (Unaudited)        |   |   |              |   |   | (Unaudited)        |   |
|                                                                                                                     |   |               |   |   |              |   |   |               |   |
| Current      Liabilities:                                                                                                |   |               |   |   |              |   |   |               |   |
| Current      maturities of long-term debt and capital leases                                                             |   | $                  | 734    |   |              | $      | 519    |               |   | $ | 717 |   |
| Accounts      payable                                                                                                    |   |               | 911    |   |              |   | 1,021  |               |   |   | 945 |   |
| Air      traffic and frequent flyer liability                                                                            |   |               | 1,936  |   |              |   | 1,881  |               |   |   | 2,374 |   |
| Accrued      payroll                                                                                                     |   |               | 405    |   |              |   | 345    |               |   |   | 380 |   |
| Accrued      other liabilities                                                                                           |   |               | 279    |   |              |   | 708    |               |   |   | 499 |   |
| Total      current liabilities                                                                                           |   |               | 4,265  |   |              |   | 4,474  |               |   |   | 4,915 |   |
|                                                                                                                     |   |               |   |   |              |   |   |               |   |   |   |   |
| Long-Term      Debt and Capital Leases                                                                                   |   |               | 5,290  |   |              |   | 5,353  |               |   |   | 5,160 |   |
|                                                                                                                     |   |               |   |   |              |   |   |               |   |   |   |   |
| Deferred      Income Taxes                                                                                               |   |               | 180    |   |              |   | 216    |               |   |   | 217 |   |
|                                                                                                                     |   |               |   |   |              |   |   |               |   |   |   |   |
| Accrued      Pension Liability                                                                                           |   |               | 1,368  |   |              |   | 1,417  |               |   |   | 564 |   |
|                                                                                                                     |   |               |   |   |              |   |   |               |   |   |   |   |
| Accrued      Retiree Medical Benefits                                                                                    |   |               | 241    |   |              |   | 234    |               |   |   | 246 |   |
|                                                                                                                     |   |               |   |   |              |   |   |               |   |   |   |   |
| Other      Liabilities                                                                                                   |   |               | 806    |   |              |   | 869    |               |   |   | 849 |   |
|                                                                                                                     |   |               |   |   |              |   |   |               |   |   |   |   |
| Commitments      and Contingencies                                                                                       |   |               |   |   |              |   |   |               |   |   |   |   |
|                                                                                                                     |   |               |   |   |              |   |   |               |   |   |   |   |
| Stockholders'      Equity:                                                                                               |   |               |   |   |              |   |   |               |   |   |   |   |
| Class      B common stock - $.01 par, 400,000,000 shares authorized;138,117,042,      123,264,534 and 110,243,176 issued |   |               | 1      |   |              |   | 1      |               |   |   | 1 |   |
| Additional      paid-in capital                                                                                          |   |               | 2,210  |   |              |   | 2,038  |               |   |   | 1,836 |   |
| Retained      earnings (accumulated deficit)                                                                             |   |               | (527   | )      |              |   | (160   | )                  |   |   | 109 |   |
| Accumulated      other comprehensive loss                                                                                |   |               | (1,238 | )      |              |   | (1,756 | )                  |   |   | (835 | ) |
| Total      stockholders' equity                                                                                          |   |               | 446    |   |              |   | 123    |               |   |   | 1,111 |   |
| Total      Liabilities and Stockholders' Equity                                                                          |   | $                  | 12,596 |   |              | $      | 12,686 |               |   | $ | 13,062 |   |

----

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

|                                                                                          |   | Nine Months Ended      September 30, |   |
|-----------------------------------------------------------------------------------------------|--------|--------------------------------------|--------|
|                                                                                          |   | 2009                                 |   |   | 2008 |   |
|                                                                                          |   | (Unaudited)                          |   |
| Cash      Flows from Operating Activities:                                                    |   |                                 |   |   |   |   |
| Net      loss                                                                                 |   | $                                    | (367   | ) |   | $ | (317 | ) |
| Adjustments      to reconcile net loss to net cash provided by operating      activities:     |   |                                 |   |   |   |   |   |   |
| Depreciation      and amortization                                                            |   |                                 | 353    |   |   |   | 327 |   |
| Special      charges                                                                          |   |                                 | 68     |   |   |   | 141 |   |
| Gain      on sale of investments                                                              |   |                                 | -      |   |   |   | (78 | ) |
| Other-than-temporary      impairment losses on investments                                    |   |                                 | -      |   |   |   | 29 |   |
| Stock-based      compensation related to equity awards                                        |   |                                 | 7      |   |   |   | 13 |   |
| Deferred      income tax benefit                                                              |   |                                 | -      |   |   |   | (110 | ) |
| Other      adjustments, net                                                                   |   |                                 | 35     |   |   |   | 20 |   |
| Changes      in operating assets and liabilities                                              |   |                                 | 91     |   |   |   | (22 | ) |
| Net      cash provided by operating activities                                                |   |                                 | 187    |   |   |   | 3 |   |
|                                                                                          |   |                                 |   |   |   |   |   |   |
| Cash      Flows from Investing Activities:                                                    |   |                                 |   |   |   |   |   |   |
| Capital      expenditures                                                                     |   |                                 | (301   | ) |   |   | (281 | ) |
| Aircraft      purchase deposits refunded, net                                                 |   |                                 | 42     |   |   |   | 61 |   |
| Proceeds      from sales of short-term investments, net                                       |   |                                 | 256    |   |   |   | 93 |   |
| Proceeds      from sales of property and equipment                                            |   |                                 | 46     |   |   |   | 76 |   |
| Decrease      (increase) in restricted cash, cash equivalents and short-term      investments |   |                                 | 26     |   |   |   | (62 | ) |
| Proceeds      from sale of Copa Holdings, S.A. stock                                          |   |                                 | -      |   |   |   | 149 |   |
| Proceeds      from sales of other long-term investments                                       |   |                                 | -      |   |   |   | 22 |   |
| Expenditures      for airport operating rights                                                |   |                                 | (22    | ) |   |   | (109 | ) |
| Other      cash flows from investing activities                                               |   |                                 | (3     | ) |   |   | - |   |
| Net      cash provided by (used in) investing activities                                      |   |                                 | 44     |   |   |   | (51 | ) |
|                                                                                          |   |                                 |   |   |   |   |   |   |
| Cash      Flows from Financing Activities:                                                    |   |                                 |   |   |   |   |   |   |
| Payments      on long-term debt and capital lease obligations                                 |   |                                 | (542   | ) |   |   | (341 | ) |
| Proceeds      from issuance of long-term debt                                                 |   |                                 | 295    |   |   |   | 497 |   |
| Proceeds      from public offering of common stock                                            |   |                                 | 158    |   |   |   | 162 |   |
| Proceeds      from issuance of common stock pursuant to stock plans                           |   |                                 | 6      |   |   |   | 13 |   |
| Net      cash (used in) provided by financing activities                                      |   |                                 | (83    | ) |   |   | 331 |   |
|                                                                                          |   |                                 |   |   |   |   |   |   |
| Net      Increase in Cash and Cash Equivalents                                                |   |                                 | 148    |   |   |   | 283 |   |
|                                                                                          |   |                                 |   |   |   |   |   |   |
| Cash      and Cash Equivalents - Beginning of Period                                          |   |                                 | 2,165  |   |   |   | 2,128 |   |
|                                                                                          |   |                                 |   |   |   |   |   |   |
| Cash      and Cash Equivalents - End of Period                                                |   | $                                    | 2,313  |   |   | $ | 2,411 |   |
|                                                                                          |   |                                 |   |   |   |   |   |   |
| Investing      and Financing Activities Not Affecting Cash:                                   |   |                                 |   |   |   |   |   |   |
| Property      and equipment acquired through the issuance of debt                             |   | $                                    | 370    |   |   | $ | 865 |   |

----

NOTES TO CONSOLIDATED FINANCIALSTATEMENTS

|                                  |   | Three      Months endedSeptember 30,      2008 |   | Nine      Months endedSeptember 30,      2008 |
|---------------------------------------|--------|------------------------------------------------|--------|-----------------------------------------------|
|                                  |   | OriginallyReported                             |   | AsAdjusted                                    |   | OriginallyReported |   | AsAdjusted |
|                                  |   |                                           |   |                                          |   |   |   |   |
| Interest      expense                 |   | $                                              | (93    | )                                             |   | $ | (95 | ) |   | $ | (271 | ) |   | $ | (279 | ) |
| Income      tax benefit               |   |                                           | 12     |                                          |   |   | 20 |   |   |   | 100 |   |   |   | 110 |   |
| Net      loss                         |   |                                           | (236   | )                                             |   |   | (230 | ) |   |   | (319 | ) |   |   | (317 | ) |
|                                  |   |                                           |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      and Diluted Loss per Share |   | $                                              | (2.14  | )                                             |   | $ | (2.09 | ) |   | $ | (3.11 | ) |   | $ | (3.08 | ) |

|                                         |   | December 31,      2008 |   | September 30,      2008 |
|----------------------------------------------|--------|------------------------|--------|-------------------------|
|                                         |   | OriginallyReported     |   | AsAdjusted              |   | OriginallyReported |   | AsAdjusted |
|                                         |   |                   |   |                    |   |   |   |   |
| Long-term      debt and capital leases       |   | $                      | 5,371  |                    |   | $ | 5,353 |   |   | $ | 5,181 |   |   | $ | 5,160 |   |
| Additional      paid-in capital              |   |                   | 1,997  |                    |   |   | 2,038 |   |   |   | 1,795 |   |   |   | 1,836 |   |
| Retained      earnings (accumulated deficit) |   |                   | (137   | )                       |   |   | (160 | ) |   |   | 129 |   |   |   | 109 |   |
| Total      stockholders’ equity        |   |                   | 105    |                    |   |   | 123 |   |   |   | 1,090 |   |   |   | 1,111 |   |

|                |                            |   |                      |        |
|---------------------|---------------------------------|--------|---------------------------|-------------|
|                |                            |   |                      | Third-Party |
| Aircraft      Type  | Total                           | Owned  | Leased                    | Aircraft    |
|                |                            |   |                      |        |
| Mainline      (a):  |                            |   |                      |        |
| 777-200ER           | 20                         |   | 8                    |        | 12  |   | -  |   |
| 767-400ER           | 16                         |   | 14                   |        | 2  |   | -  |   |
| 767-200ER           | 10                         |   | 9                    |        | 1  |   | -  |   |
| 757-300             | 17                         |   | 9                    |        | 8  |   | -  |   |
| 757-200             | 41                         |   | 15                   |        | 26  |   | -  |   |
| 737-900ER           | 28                         |   | 28                   |        | -  |   | -  |   |
| 737-900             | 12                         |   | 8                    |        | 4  |   | -  |   |
| 737-800             | 117                        |   | 44                   |        | 73  |   | -  |   |
| 737-700             | 36                         |   | 12                   |        | 24  |   | -  |   |
| 737-500             | 34                         |   | -                    |        | 34  |   | -  |   |
| 737-300             |           7 |   |     7 |        |      -  |   |    - |   |
| Total      mainline | 338                             |   | 154                       |        | 184 |   |    - |   |
|                |                            |   |                      |        |   |   |   |   |
| Regional      (b):  |                            |   |                      |        |   |   |   |   |
| ERJ-145XR           | 89                         |   | -                    |        | 89  |   | -   |   |
| ERJ-145             | 140                        |   | 18                   |        | 107  |   | 15  | (c) |
| CRJ200LR            | 7                          |   | -                    |        | -  |   | 7  | (c) |
| Q200                | 16                         |   | -                    |        | -  |   | 16  | (d) |
| Q400                |   14                  |   |     - |        |      - |   |  14 | (e) |
| Total      regional | 266                             |   |   18            |        | 196 |   |  52 |   |
|                |                            |   |                      |        |   |   |   |   |
| Total               | 604                             |   | 172                       |        | 380 |   |    52 |   |

| (a) | Excludes      nine grounded Boeing 737-500 aircraft (five owned and four leased), 12      grounded Boeing 737-300 aircraft (four owned and eight leased) and one      owned Boeing 737-900ER aircraft delivered but not yet placed into      service. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | Excludes      25 ERJ-135 aircraft that are temporarily grounded and 30 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 Airlines, Inc. (“Chautauqua”) under a capacity purchase      agreement.                                                                                                                                       |
| (d) | Operated      by Champlain Enterprises, Inc. (“CommutAir”) under a capacity purchase      agreement.                                                                                                                                      |
| (e) | Operated      by Colgan Air, Inc. (“Colgan”) under a capacity purchase      agreement.                                                                                                                                                    |

| October      1, 2009 through December 31, 2009 |   | $      | 62     |   |
|------------------------------------------------|--------|--------|--------|--------|
| Year      ending December 31,                  |   |   |   |   |
| 2010                                           |   |   | 968    |   |
| 2011                                           |   |   | 1,143  |   |
| 2012                                           |   |   | 581    |   |
| 2013                                           |   |   | 647    |   |

|                                       |   | September      30, |   | December      31, |   | September      30, |
|--------------------------------------------|--------|--------------------|--------|-------------------|--------|--------------------|
|                                       |   | 2009               |   | 2008              |   | 2008               |
|                                       |   |               |   |              |   |               |
| Principal      amount of Convertible Notes |   | $                  | 175    |              |   | $                  | 175 |   |   | $ | 175 |   |
| Unamortized      discount                  |   |               | 9      |              |   |               | 18 |   |   |   | 21 |   |
| Net      carrying amount                   |   |               | 166    |              |   |               | 157 |   |   |   | 154 |   |
| Additional      paid-in capital            |   |               | 64     |              |   |               | 64 |   |   |   | 64 |   |

|                                                  |   | Three      MonthsEnded September      30, |   | Nine      MonthsEnded September      30, |
|-------------------------------------------------------|--------|-------------------------------------------|--------|------------------------------------------|
|                                                  |   | 2009                                      |   | 2008                                     |   | 2009 |   | 2008 |
|                                                  |   |                                      |   |                                     |   |   |   |   |
| Contractual      coupon interest                      |   | $                                         | 2      |                                     |   | $ | 2 |   |   | $ | 6 |   |   | $ | 6 |   |
| Amortization      of discount on 5% Convertible Notes |   |                                      | 3      |                                     |   |   | 3 |   |   |   | 9 |   |   |   | 9 |   |
| Interest      expense                                 |   | $                                         | 5      |                                     |   | $ | 5 |   |   | $ | 15 |   |   | $ | 15 |   |
|                                                  |   |                                      |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Effective      interest rate                          |   |                                      | 13     | %                                        |   |   | 13 | % |   |   | 13 | % |   |   | 13 | % |

|   | 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 ofSeptember 30,      2009 |   |   | Level      1 |   |   | Level      2 |   |   | Level      3 |   | ValuationTechnique |
|-------------------------------------------------------------------|--------|---------------------------------------------------|--------|--------|--------------|--------|--------|--------------|--------|--------|--------------|--------|--------------------|
|                                                              |   |                                              |   |   |         |   |   |         |   |   |         |   |               |
| Cash      and cash equivalents                                    |   | $                                                 | 2,313  |   |         | $      | 2,313  |         |   |   | -            |   |               |   | - |   | (A) |
| Short-term      investments:                                      |   |                                              |   |   |         |   | -      |         |   |   |         |   |               |   |   |   |   |
| Auction      rate securities                                      |   |                                              | 205    |   |         |   |   |         |   |   | -            |   |               | $ | 205 |   | (B) |
| Other                                                             |   |                                              | 24     |   |         |   | 24     |         |   |   | -            |   |               |   | - |   | (A) |
| Restricted      cash, cash equivalents and short-term investments |   |                                              | 164    |   |         |   | 164    |         |   |   | -            |   |               |   | - |   | (A) |
| Auction      rate securities put right                            |   |                                              | 23     |   |         |   | -      |         |   |   | -            |   |               |   | 23 |   | (B) |
| Fuel      derivatives                                             |   |                                              | 9      |   |         |   | -      |         |   |   | -            |   |               |   | 9 |   | (A) |
| Foreign      currency derivatives                                 |   |                                              | (3     | )      |         |   | -      |         |   | $      | (3           | )      |               |   | - |   | (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           |   | $               | 135    |           |   | $                   | 166 |   |   | $ | 135 |   |
| Trading                      |   |            | 70     |           |   |                | 95 |   |   |   | N/A |   |
| Total                        |   | $               | 205    |           |   | $                   | 261 |   |   |   |   |   |

|                                                   |   | Three Months Ended      September 30, 2009            |   |
|--------------------------------------------------------|--------|-------------------------------------------------------|--------|
|                                                   |   | Student      Loan-RelatedAuction Rate      Securities |   |   | Auction      RateSecurities Put      Right |   |   | FuelDerivatives |   |
|                                                   |   |                                                  |   |   |   |   |   |   |   |
| Balance      at June 30, 2009                          |   | $                                                     | 230    |   |   | $ | 27 |   |   | $ | (17 | ) |
| Purchases,      sales, issuances and settlements (net) |   |                                                  | (30    | ) |   |   | - |   |   |   | 36 |   |
| Gains      and losses:                                 |   |                                                  |   |   |   |   |   |   |   |   |   |   |
| Reported      in earnings:                             |   |                                                  |   |   |   |   |   |   |   |   |   |   |
| Realized                                               |   |                                                  | 5      |   |   |   | (4 | ) |   |   | - |   |
| Unrealized                                             |   |                                                  | -      |   |   |   | - |   |   |   | 1 |   |
| Reported      in other comprehensive income (loss)     |   |                                                  | -      |   |   |   | - |   |   |   | (11 | ) |
| Balance      at September 30, 2009                     |   | $                                                     | 205    |   |   | $ | 23 |   |   | $ | 9 |   |

|                                                   |   | Nine Months Ended      September 30, 2009             |   |
|--------------------------------------------------------|--------|-------------------------------------------------------|--------|
|                                                   |   | Student      Loan-RelatedAuction Rate      Securities |   |   | Auction      RateSecurities Put      Right |   |   | FuelDerivatives |   |
|                                                   |   |                                                  |   |   |   |   |   |   |   |
| Balance      at December 31, 2008                      |   | $                                                     | 229    |   |   | $ | 26 |   |   | $ | (415 | ) |
| Purchases,      sales, issuances and settlements (net) |   |                                                  | (31    | ) |   |   | - |   |   |   | 458 |   |
| Gains      and losses:                                 |   |                                                  |   |   |   |   |   |   |   |   |   |   |
| Reported      in earnings:                             |   |                                                  |   |   |   |   |   |   |   |   |   |   |
| Realized                                               |   |                                                  | 5      |   |   |   | (4 | ) |   |   | - |   |
| Unrealized                                             |   |                                                  | -      |   |   |   | 1 |   |   |   | 7 |   |
| Reported      in other comprehensive income (loss)     |   |                                                  | 2      |   |   |   | - |   |   |   | (41 | ) |
| Balance      at September 30, 2009                     |   | $                                                     | 205    |   |   | $ | 23 |   |   | $ | 9 |   |

| ·  | Debt.  The      fair value of our debt with a carrying value of $5.8 billion at September      30, 2009 was approximately $5.1 billion.  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 have company owned life insurance policies covering      certain of our employees.  As of September 30, 2009, the      carrying value of the cash surrender value of the life insurance policies      was $30 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 maturities.                                                                                                                                                                                                                              |

|                            |   | Maximum      Price           |   | Minimum      Price                          |
|---------------------------------|--------|------------------------------|--------|---------------------------------------------|
|                            |   | %      ofExpectedConsumption |   | WeightedAverage      Price(per      gallon) |   | %      ofExpectedConsumption |   | WeightedAverage      Price(per      gallon) |
|                            |   |                         |   |                                        |   |   |   |   |
| Fourth Quarter      2009        |   |                         |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Gulf      Coast jet fuel swaps  |   |                         | 15     | %                                           |   |   | $ | 1.83 |   |   |   |   | 15 | % |   |   | $ | 1.83 |   |   |
| WTI      crude oil swaps        |   |                         | 5      | %                                           |   |   |   | 1.36 |   |   |   |   | 5 | % |   |   |   | 1.36 |   |   |
| Total                           |   |                         | 20     | %                                           |   |   |   |   |   |   |   |   | 20 | % |   |   |   |   |   |   |
|                            |   |                         |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| First Quarter      2010         |   |                         |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gulf      Coast jet fuel swaps  |   |                         | 5      | %                                           |   |   | $ | 1.94 |   |   |   |   | 5 | % |   |   | $ | 1.94 |   |   |
| WTI      crude oil swaps        |   |                         | 1      | %                                           |   |   |   | 1.62 |   |   |   |   | 1 | % |   |   |   | 1.62 |   |   |
| WTI      crude oil call options |   |                         | 1      | %                                           |   |   |   | 1.88 |   |   |   |   | N/A |   |   |   |   | N/A |   |   |
| Total                           |   |                         | 7      | %                                           |   |   |   |   |   |   |   |   | 6 | % |   |   |   |   |   |   |

| ·  | 24%      of our projected Japanese yen-denominated cash inflows through      2010 |
|--------------|-----------------------------------------------------------------------------------|
|         |                                                                              |
| ·  | 9%      of our projected euro-denominated cash inflows through  2009              |

|                              | Asset      Derivatives                    | Liability      Derivatives |
|-----------------------------------|-------------------------------------------|----------------------------|
|                              | Balance      SheetLocation                |                       | FairValue | Balance      SheetLocation |   | FairValue |
|                              |                                      |                       |   |   |   |   |
| Fuel      derivatives             | Prepayments      and other current assets |                       | $ | 9 |   | Accrued      other current liabilities |   | $ | - |   |
|                              |                                      |                       |   |   |   |   |   |   |   |   |
| Foreign      currency derivatives | Prepayments      and other current assets |                       |   | - |   | Accrued      other current liabilities |   |   | 3 |   |
| Total      derivatives            |                                      |                       | $ | 9 |   |   |   | $ | 3 |   |

|                              |   | Three Months Ended      September 30, 2009                    |
|-----------------------------------|--------|---------------------------------------------------------------|
| 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        |   | $                                                             | (6 | ) | Aircraft      fuel andrelated      taxes |   | $ | (41 | ) | Other      nonoperatingincome      (expense) |   | $ | 1 |   |
|                              |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign      currency derivatives |   |                                                          | (3 | ) | Passenger      revenue  |   |   | - |   | Other      nonoperatingincome      (expense) |   |   | - |   |
| Total                             |   | $                                                             | (9 | ) |   |   | $ | (41 | ) |   |   | $ | 1 |   |

|                              |   | Nine Months Ended      September 30, 2009                     |
|-----------------------------------|--------|---------------------------------------------------------------|
| 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        |   | $                                                             | 23 |   | Aircraft      fuel andrelated      taxes |   | $ | (392 | ) | Other      nonoperatingincome      (expense) |   | $ | 7 |   |
|                              |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign      currency derivatives |   |                                                          | 6 |   | Passenger      revenue  |   |   | - |   | Other      nonoperatingincome      (expense) |   |   | - |   |
| Total                             |   | $                                                             | 29 |   |   |   | $ | (392 | ) |   |   | $ | 7 |   |

|                                                                                          |   | Three      MonthsEnded September      30, |   |    | Nine      MonthsEnded September      30, |   |
|-----------------------------------------------------------------------------------------------|--------|-------------------------------------------|--------|---------|------------------------------------------|--------|
|                                                                                          |   | 2009                                      |   |    | 2008                                     |   |   | 2009 |   |   | 2008 |   |
|                                                                                          |   |                                      |   |    |                                     |   |   |   |   |   |   |   |
| Net      loss                                                                                 |   | $                                         | (18    | )  |                                     | $      | (230 | )  |   | $ | (367 | ) |   | $ | (317 | ) |
|                                                                                          |   |                                      |   |    |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Other      comprehensive income (loss):                                                       |   |                                      |   |    |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Derivative      financial instruments:                                                        |   |                                      |   |    |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification      into income (net of deferred taxes of $51 and $0 in 2008)               |   |                                      | 40     |    |                                     |   | 6 |   |   |   | 383 |   |   |   | (201 | ) |
| Changes      in fair value (net of deferred taxes of $(77) and $0 in    2008)                 |   |                                      | (9     | )       |                                     |   | (336 | ) |   |   | 29 |   |   |   | (82 | ) |
| Unrealized      gain on student loan-related auction rate securities                          |   |                                      | -      |    |                                     |   | (3 | ) |   |   | 2 |   |   |   | (3 | ) |
| Items      related to employee benefit plans:                                                 |   |                                      |   |    |                                     |   |   |   |   |   |   |   |   |   |   |   |
| (Increase)      decrease in net actuarial losses                                              |   |                                      | -      |    |                                     |   | (89 | ) |   |   | - |   |   |   | (89 | ) |
| Amortization      of net actuarial losses (net of deferred taxes of $(5) and $0 in      2008) |   |                                      | 27     |    |                                     |   | 13 |   |   |   | 81 |   |   |   | 22 |   |
| Amortization      of prior service cost (net of deferred taxes of $(6) and $0 in      2008)   |   |                                      | 7      |    |                                     |   | 13 |   |   |   | 23 |   |   |   | 23 |   |
| Comprehensive      income (loss) adjustments                                                  |   |                                      | 65     |    |                                     |   | (396 | ) |   |   | 518 |   |   |   | (330 | ) |
|                                                                                          |   |                                      |   |    |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Total      comprehensive income (loss)                                                        |   | $                                         | 47     |    |                                     | $      | (626 | ) |   | $ | 151 |   |   | $ | (647 | ) |

|                                                 |   | Defined Benefit      Pension              |   |   | Retiree Medical      Benefits            |   |
|------------------------------------------------------|--------|-------------------------------------------|--------|--------|------------------------------------------|--------|
|                                                 |   | Three      MonthsEnded September      30, |   |   | Nine      MonthsEnded September      30, |   |   | Three      MonthsEnded September      30, |   |   | Nine      Months Ended September      30, |   |
|                                                 |   | 2009                                      |   |   | 2008                                     |   |   | 2009 |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
|                                                 |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Service      cost                                    |   | $                                         | 16     |   |                                     | $      | 15 |   |   | $ | 48 |   |   | $ | 44 |   |   | $ | 3 |   |   | $ | 3 |   |   | $ | 8 |   |   | $ | 9 |   |
| Interest      cost                                   |   |                                      | 38     |   |                                     |   | 37 |   |   |   | 115 |   |   |   | 112 |   |   |   | 4 |   |   |   | 4 |   |   |   | 12 |   |   |   | 12 |   |
| Expected      return on plan assets                  |   |                                      | (22    | )      |                                     |   | (39 | ) |   |   | (66 | ) |   |   | (120 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Amortization      of unrecognized net actuarial loss |   |                                      | 28     |   |                                     |   | 8 |   |   |   | 83 |   |   |   | 23 |   |   |   | (1 | ) |   |   | - |   |   |   | (2 | ) |   |   | (1 | ) |
| Amortization      of prior service cost              |   |                                      | 2      |   |                                     |   | 2 |   |   |   | 7 |   |   |   | 7 |   |   |   | 5 |   |   |   | 5 |   |   |   | 16 |   |   |   | 16 |   |
| Net      periodic benefit expense                    |   |                                      | 62     |   |                                     |   | 23 |   |   |   | 187 |   |   |   | 66 |   |   |   | 11 |   |   |   | 12 |   |   |   | 34 |   |   |   | 36 |   |
| Settlement      charge (included in special charges) |   |                                      | -      |   |                                     |   | 8 |   |   |   |  - |   |   |   | 8 |   |   |   | - |   |   |   |  - |   |   |   | - |   |   |   | - |   |
| Net      benefit expense                             |   | $                                         | 62     |   |                                     | $      | 31 |   |   | $ | 187 |   |   | $ | 74 |   |   | $ | 11 |   |   | $ | 12 |   |   | $ | 34 |   |   | $ | 36 |   |

|                                                             |   | Three      MonthsEnded September      30, |   |   | Nine      MonthsEnded September      30, |   |
|------------------------------------------------------------------|--------|-------------------------------------------|--------|--------|------------------------------------------|--------|
|                                                             |   | 2009                                      |   |   | 2008                                     |   |   | 2009 |   |   | 2008 |   |
|                                                             |   |                                      |   |   |                                     |   |   |   |   |   |   |   |
| Aircraft-related      charges, net of gains on sales of aircraft |   | $                                         | 6      |   |                                     | $      | 12 |   |   | $ | 53 |   |   | $ | 45 |   |
| Severance                                                        |   |                                      | 5      |   |                                     |   | 33 |   |   |   | 5 |   |   |   | 33 |   |
| Route      impairment and other                                  |   |                                      | 9      |   |                                     |   | 38 |   |   |   | 10 |   |   |   | 55 |   |
| Pension      settlement charges (see Note 10)                    |   |                                      | -      |   |                                     |   | 8 |   |   |   | - |   |   |   | 8 |   |
| Total      special charges                                       |   | $                                         | 20     |   |                                     | $      | 91 |   |   | $ | 68 |   |   | $ | 141 |   |

|                             |   | Severance/Medical      Costs |   |   | PermanentlyGrounded      Aircraft |   |   | UnusedFacilities |   |
|----------------------------------|--------|------------------------------|--------|--------|-----------------------------------|--------|--------|------------------|--------|
|                             |   |                         |   |   |                              |   |   |             |   |
| Balance,      December 31, 2008  |   | $                            | 28     |   |                              | $      | 10     |             |   | $ | 20 |   |
| Accrual                          |   |                         | 5      |   |                              |   | 1      |             |   |   | 10 |   |
| Payments                         |   |                         | (13    | )      |                              |   | (8     | )                |   |   | (3 | ) |
| Balance,      September 30, 2009 |   | $                            | 20     |   |                              | $      | 3      |             |   | $ | 27 |   |

|                          |   | Three      Months Ended September      30, |      | Nine      MonthsEnded September      30, |   |
|-------------------------------|--------|-------------------------------------------------|-----------|------------------------------------------|--------|
|                          |   | 2009                                            |      |                                     | 2008   |   |   |   | 2009 |   |   | 2008 |   |
|                          |   |                                            |      |                                     |   |   |   |   |   |   |   |
| Operating      Revenue:       |   |                                            |      |                                     |   |   |   |   |   |   |   |
| Mainline                      |   | $                                               | 2,797     |                                     |   | $ | 3,519 |   |   |   | $ | 7,970 |   |   | $ | 9,899 |   |
| Regional                      |   |                                            | 520       |                                     |   |   | 637 |   |   |   |   | 1,434 |   |   |   | 1,872 |   |
| Total      Consolidated       |   | $                                               | 3,317     |                                     |   | $ | 4,156 |   |   |   | $ | 9,404 |   |   | $ | 11,771 |   |
|                          |   |                                            |      |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      Income (Loss): |   |                                            |      |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mainline                      |   | $                                               | 111       |                                     |   | $ | (30 | ) |   |   | $ | 111 |   |   | $ | 17 |   |
| Regional                      |   |                                            |  (50 | )                                        |   |   |  (122 | ) |   |   |   |  (258 | ) |   |   |  (306 | ) |
| Total      Consolidated       |   | $                                               | 61        |                                     |   | $ | (152 | ) |   |   | $ | (147 | ) |   | $ | (289 | ) |
|                          |   |                                            |      |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Income (Loss):       |   |                                            |      |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mainline                      |   | $                                               | 35        |                                     |   | $ | (112 | ) |   |   | $ | (99 | ) |   | $ | (77 | ) |
| Regional                      |   |                                            | (53       | )                                        |   |   | (118 | ) |   |   |   | (268 | ) |   |   | (240 | ) |
| Total      Consolidated       |   | $                                               | (18       | )                                        |   | $ | (230 | ) |   |   | $ | (367 | ) |   | $ | (317 | ) |

| ·  | a      total of $79 million if our unrestricted cash, cash equivalents and      short-term investments balance falls below $2.0billion;                                                                                                                                                                                             |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·  | a      total of $234 million if we fail to maintain the minimum unsecured debt      ratings specified above;                                                                                                                                                                                                                        |
| ·  | a      total of $441 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 $958 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.     |

| ·  | We      recorded a net loss of $18 million in the third quarter of      2009.                                                                                                                                                                        |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                                                 |
| ·  | Passenger      revenue decreased 21.6% during the third quarter of 2009 as compared to      the third quarter of 2008, primarily due to lower fares and less high      yield business traffic attributable to the global    recession.               |
|         |                                                                                                                                                                                                                                                 |
| ·  | We      recorded operating income of $61 million during the third quarter of 2009      as compared to an operating loss of $152 million in the third quarter of      2008, due primarily to lower fuel costs offset in part by reduced      revenue. |
|         |                                                                                                                                                                                                                                                 |
| ·  | Unrestricted      cash, cash equivalents and short-term investments totaled $2.5 billion at      September 30, 2009.                                                                                                                                 |

| ·  | Consolidated      traffic decreased 0.9% and capacity decreased 4.5% during the third      quarter of 2009 as compared to the third quarter of 2008, resulting in a      consolidated load factor of 85.1% for the third quarter of      2009.                                                                                                          |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                                                                                                                                                    |
| ·  | We      recorded a U.S. Department of Transportation (“DOT”) on-time arrival rate      of 82.8% and a systemwide mainline segment completion factor of 99.7% for      the third quarter of 2009, compared to a DOT on-time arrival rate of 77.0%      and a mainline segment completion factor of 97.9% for the third quarter of      2008. |

|                                                        |   | 2009   |   |   | 2008   |   |   | Increase(Decrease) |   |
|-------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------------------|--------|
|                                                        |   |   |   |   |   |   |   |               |   |
| Passengers      (thousands) (1)                             |   |   | 16,795 |   |   |   | 17,108 |               |   |   | (1.8 | )% |
| Revenue      passenger miles (millions) (2)                 |   |   | 24,617 |   |   |   | 24,836 |               |   |   | (0.9 | )% |
| Available      seat miles (millions) (3)                    |   |   | 28,933 |   |   |   | 30,304 |               |   |   | (4.5 | )% |
| Passenger      load factor (4)                              |   |   | 85.1   | %      |   |   | 82.0   | %                  |   | 3.1 pts. |   |
| Passenger      revenue per available seat mile (cents)      |   |   | 10.19  |   |   |   | 12.41  |               |   |   | (17.9 | )% |
| Average      yield per revenue passenger mile (cents) (5)   |   |   | 11.97  |   |   |   | 15.14  |               |   |   | (20.9 | )% |
| Average      price per gallon of fuel, including fuel taxes |   | $      | 1.99   |   |   | $      | 3.85   |               |   |   | (48.3 | )% |
| Fuel      gallons consumed (millions)                       |   |   | 443    |   |   |   | 470    |               |   |   | (5.7 | )% |

| (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.                                   |

|                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   | Increase |   |   | %      Increase |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|----------|--------|--------|-----------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 2009   |   |   | 2008     |   |   | (Decrease)      |   |   | (Decrease) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |     |   |   |            |   |   |   |   |
| Operating      Revenue                                                                                                                                                                                                                                                                                                                                                                                                          |   | $      | 3,317  |   |     | $      | 4,156  |            |   | $ | (839 | ) |   |   | (20.2 | )% |
| Operating      Expenses                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 3,256  |   |     |   | 4,308  |            |   |   | (1,052 | ) |   |   | (24.4 | )% |
| Operating      Income (Loss)                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 61     |   |     |   | (152   | )               |   |   | 213 |   |   | NM |   |
| Nonoperating      Income (Expense)                                                                                                                                                                                                                                                                                                                                                                                              |   |   | (79    | )      |     |   | (98    | )               |   |   | (19 | ) |   |   | (19.4 | )% |
| Income      Tax Benefit                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | -      |   |     |   | 20     |            |   |   | (20 | ) |   |   | (100.0 | )% |
|                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |     |   |   |            |   |   |   |   |   |   |   |   |
| Net      Loss                                                                    |   | $      | (18    | )      |     | $      | (230   | )               |   | $ | (212 | ) |   |   | (92.2 | )% |

|                    |   | Revenue            |   |   | Percentage      Increase (Decrease) inThird Quarter 2009 vs      Third Quarter 2008 |   |
|-------------------------|--------|--------------------|--------|--------|-------------------------------------------------------------------------------------|--------|
|                    |   | (in      millions) |   |   | Revenue                                                                             |   |   | RASM |   |   | ASMs |   |
|                    |   |               |   |   |                                                                                |   |   |   |   |   |   |   |
| Passenger      revenue: |   |               |   |   |                                                                                |   |   |   |   |   |   |   |
| Domestic                |   | $                  | 1,177  |   |                                                                                |   | (20.5 | )% |   |   | (15.6 | )% |   |   | (5.8 | )% |
| Trans-Atlantic          |   |               | 649    |   |                                                                                |   | (29.2 | )% |   |   | (21.0 | )% |   |   | (10.5 | )% |
| Latin      America      |   |               | 361    |   |                                                                                |   | (22.4 | )% |   |   | (24.3 | )% |   |   | 2.4 | % |
| Pacific                 |   |               | 255    |   |                                                                                |   | (9.5 | )% |   |   | (22.6 | )% |   |   | 16.9 | % |
| Total      Mainline     |   |               | 2,442  |   |                                                                                |   | (22.4 | )% |   |   | (19.1 | )% |   |   | (4.1 | )% |
|                    |   |               |   |   |                                                                                |   |   |   |   |   |   |   |   |   |   |   |
| Regional                |   |               | 505    |   |                                                                                |   | (17.7 | )% |   |   | (10.9 | )% |   |   | (7.7 | )% |
|                    |   |               |   |   |                                                                                |   |   |   |   |   |   |   |   |   |   |   |
| Total                   |   |               | 2,947  |   |                                                                                |   | (21.6 | )% |   |   | (17.9 | )% |   |   | (4.5 | )% |
|                    |   |               |   |   |                                                                                |   |   |   |   |   |   |   |   |   |   |   |
| Cargo                   |   |               | 92     |   |                                                                                |   | (28.7 | )% |   |   |   |   |   |   |   |   |
| Other                   |   |               | 278    |   |                                                                                |   | 4.1 | % |   |   |   |   |   |   |   |   |
|                    |   |               |   |   |                                                                                |   |   |   |   |   |   |   |   |   |   |   |
| Operating      Revenue  |   | $                  | 3,317  |   |                                                                                |   | (20.2 | )% |   |   |   |   |   |   |   |   |

|                                    |   | 2009   |   |   | 2008   |   |   | Increase(Decrease) |   |   | %      Increase(Decrease) |   |
|-----------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------------------|--------|--------|---------------------------|--------|
|                                    |   |   |   |   |   |   |   |               |   |   |                      |   |
| Aircraft      fuel and related taxes    |   | $      | 881    |   |   | $      | 1,807  |               |   | $      | (926                      | )      |   |   | (51.2 | )% |
| Wages,      salaries and related costs  |   |   | 794    |   |   |   | 765    |               |   |   | 29                        |   |   |   | 3.8 | % |
| Aircraft      rentals                   |   |   | 233    |   |   |   | 244    |               |   |   | (11                       | )      |   |   | (4.5 | )% |
| Landing      fees and other rentals     |   |   | 222    |   |   |   | 225    |               |   |   | (3                        | )      |   |   | (1.3 | )% |
| Regional      capacity purchase, net    |   |   | 211    |   |   |   | 247    |               |   |   | (36                       | )      |   |   | (14.6 | )% |
| Distribution      costs                 |   |   | 160    |   |   |   | 182    |               |   |   | (22                       | )      |   |   | (12.1 | )% |
| Maintenance,      materials and repairs |   |   | 159    |   |   |   | 152    |               |   |   | 7                         |   |   |   | 4.6 | % |
| Depreciation      and amortization      |   |   | 124    |   |   |   | 112    |               |   |   | 12                        |   |   |   | 10.7 | % |
| Passenger      services                 |   |   | 99     |   |   |   | 113    |               |   |   | (14                       | )      |   |   | (12.4 | )% |
| Special      charges                    |   |   | 20     |   |   |   | 91     |               |   |   | (71                       | )      |   | NM |   |
| Other                                   |   |   | 353    |   |   |   | 370    |               |   |   | (17                       | )      |   |   | (4.6 | )% |
|                                    |   | $      | 3,256  |   |   | $      | 4,308  |               |   | $      | (1,052                    | )      |   |   | (24.4 | )% |

| ·  | Aircraft fuel and      related taxes decreased due to a 48.3% decrease in consolidated jet      fuel prices and decreased flying.  Our average jet fuel price      per gallon including related taxes decreased to $1.99 in the third quarter      of 2009 from $3.85 in the third quarter of 2008.  Our average      jet fuel price includes losses related to our fuel hedging program of      $0.09 per gallon in the third quarter of 2009 as compared to $0.10 per      gallon in the third quarter of 2008.                                        |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| ·  | Wages, salaries and      related costs increased primarily due to higher wage rates for      certain workgroups offset by a 5% reduction in the number of employees in      connection with capacity reductions.  Expenses in the third      quarter of 2009 also include $39 million of higher pension expense      resulting primarily from lower returns on plan assets.                                                                                                                                                                                        |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| ·  | Aircraft      rentals decreased due to the retirement of leased Boeing 737      aircraft in the second half of 2008 and the first nine months of      2009.  New aircraft delivered in 2008 and the first nine months      of 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.  Capacity purchase expenses decreased due      to the transition of management of certain airports to us from ExpressJet,      with the related expense now being reported in landing fees and other      rentals and other operating expenses, as well as capacity      reductions. |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| ·  | Distribution      costs decreased due to lower credit card discount fees, booking      fees and travel agency commissions, all of which resulted from decreased      passenger revenue.                                                                                                                                                                                                                                                                                                                                                                                      |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| ·  | Passenger      services expenses decreased due to fewer meals and beverages in the      third quarter of 2009 compared to the third quarter of 2008, resulting      from the decreased demand for air travel in the weak economy, and lower      mishandled baggage expenses.                                                                                                                                                                                                                                                                                                |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| ·  | Special      charges.  See Note 11 to our consolidated financial      statements contained in Item 1 of this report for a discussion of the      special charges.                                                                                                                                                                                                                                                                                                                                                                                                  |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| ·  | Other operating      expenses decreased due to lower ground handling, security and      outside service costs resulting from capacity reductions, more favorable      foreign currency exchange rates and lower OnePass reward expenses,      partially offset by expenses now recorded in other operating expenses as a      result of the transition of management of certain airports to us from      ExpressJet.                                                                                                                                                         |

| ·  | Net interest      expense increased $10 million primarily as a result of lower      interest income.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| ·  | Other nonoperating      income (expense) included fuel hedge ineffectiveness gains (losses)      of $1 million and $(15) million in the third quarter of 2009 and 2008,      respectively.  The ineffectiveness was caused by our non-jet      fuel derivatives experiencing a higher relative change in value than the      jet fuel being hedged and the mark-to-market impact of fuel derivative      contracts with a bankrupt counterparty.  Other nonoperating      income (expense) in the third quarter of 2009 also included favorable      foreign exchange gains and an increase in the fair value of the cash      surrender value of company-owned life insurance  policies. |

|                                                                           |   |   |   |   | Increase |   |
|--------------------------------------------------------------------------------|--------|--------|--------|--------|----------|--------|
|                                                                           |   | 2009   |   |   | 2008     |   |   | (Decrease) |   |
|                                                                           |   |   |   |   |     |   |   |   |   |
| Mainline      Operations:                                                      |   |   |   |   |     |   |   |   |   |
| Passengers      (thousands)                                                    |   |   | 12,181 |   |     |   | 12,518 |   |   |   | (2.7 | )% |
| Revenue      passenger miles (millions)                                        |   |   | 22,127 |   |     |   | 22,318 |   |   |   | (0.9 | )% |
| Available      seat miles (millions)                                           |   |   | 25,803 |   |     |   | 26,914 |   |   |   | (4.1 | )% |
| Cargo      ton miles (millions)                                                |   |   | 245    |   |     |   | 245 |   |   |   | - |   |
| Passenger      load factor:                                                    |   |   |   |   |     |   |   |   |   |   |   |   |
| Mainline                                                                       |   |   | 85.8   | %      |     |   | 82.9 | % |   | 2.9 pts. |   |
| Domestic                                                                       |   |   | 87.9   | %      |     |   | 83.9 | % |   | 4.0 pts. |   |
| International                                                                  |   |   | 83.7   | %      |     |   | 82.0 | % |   | 1.7 pts. |   |
|                                                                           |   |   |   |   |     |   |   |   |   |   |   |   |
| Passenger      revenue per available seat mile (cents)                         |   |   | 9.46   |   |     |   | 11.69 |   |   |   | (19.1 | )% |
| Total      revenue per available seat mile (cents)                             |   |   | 10.84  |   |     |   | 13.07 |   |   |   | (17.1 | )% |
| Average      yield per revenue passenger mile (cents)                          |   |   | 11.04  |   |     |   | 14.10 |   |   |   | (21.7 | )% |
| Average      fare per revenue passenger                                        |   | $      | 202.87 |   |     | $      | 254.28 |   |   |   | (20.2 | )% |
|                                                                           |   |   |   |   |     |   |   |   |   |   |   |   |
| Cost      per available seat mile, including special      charges (cents) |   |   | 10.41  |   |     |   | 13.19 |   |   |   | (21.1 | )% |
| Special      charges per available seat mile (cents)                           |   |   | 0.05   |   |     |   | 0.30 |   |   | NM |   |
|                                                                           |   |   |   |   |     |   |   |   |   |   |   |   |
| Average      price per gallon of fuel, including fuel taxes                    |   | $      | 1.99   |   |     | $      | 3.86 |   |   |   | (48.4 | )% |
| Fuel      gallons consumed (millions)                                          |   |   | 369    |   |     |   | 389 |   |   |   | (5.1 | )% |
|                                                                           |   |   |   |   |     |   |   |   |   |   |   |   |
| Aircraft      in fleet at end of period (1)                                    |   |   | 338    |   |     |   | 351 |   |   |   | (3.7 | )% |
| Average      length of aircraft flight (miles)                                 |   |   | 1,593  |   |     |   | 1,533 |   |   |   | 3.9 | % |
| Average      daily utilization of each aircraft (hours)                        |   | 11:06  |   |   | 11:21    |   |   |   | (2.2 | )% |
|                                                                           |   |   |   |   |     |   |   |   |   |   |   |   |
| Regional      Operations:                                                      |   |   |   |   |     |   |   |   |   |   |   |   |
| Passengers      (thousands)                                                    |   |   | 4,614  |   |     |   | 4,590 |   |   |   | 0.5 | % |
| Revenue      passenger miles (millions)                                        |   |   | 2,490  |   |     |   | 2,518 |   |   |   | (1.1 | )% |
| Available      seat miles (millions)                                           |   |   | 3,130  |   |     |   | 3,390 |   |   |   | (7.7 | )% |
| Passenger      load factor                                                     |   |   | 79.6   | %      |     |   | 74.3 | % |   | 5.3 pts. |   |
| Passenger      revenue per available seat mile (cents)                         |   |   | 16.14  |   |     |   | 18.12 |   |   |   | (10.9 | ) % |
| Average      yield per revenue passenger mile (cents)                          |   |   | 20.29  |   |     |   | 24.39 |   |   |   | (16.8 | )% |
| Aircraft      in fleet at end of period (1)                                    |   |   | 266    |   |     |   | 279 |   |   |   | (4.7 | )% |

| (1) | Excludes      aircraft that were removed from service.  Regional aircraft      include aircraft operated by all carriers under capacity purchase      agreements, but exclude any aircraft subleased to other operators and      operated outside the scope of our capacity purchase      agreements. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                    |   | 2009   |   |   | 2008   |   |   | Increase(Decrease) |   |   | %      Increase(Decrease) |   |
|-----------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------------------|--------|--------|---------------------------|--------|
|                                    |   |   |   |   |   |   |   |               |   |   |                      |   |
| Operating      Revenue                  |   | $      | 2,797  |   |   | $      | 3,519  |               |   | $      | (722                      | )      |   |   | (20.5 | )% |
|                                    |   |   |   |   |   |   |   |               |   |   |                      |   |   |   |   |   |
| Operating      Expenses:                |   |   |   |   |   |   |   |               |   |   |                      |   |   |   |   |   |
| Aircraft      fuel and related taxes    |   |   | 735    |   |   |   | 1,501  |               |   |   | (766                      | )      |   |   | (51.0 | )% |
| Wages,      salaries and related costs  |   |   | 751    |   |   |   | 727    |               |   |   | 24                        |   |   |   | 3.3 | % |
| Aircraft      rentals                   |   |   | 154    |   |   |   | 165    |               |   |   | (11                       | )      |   |   | (6.7 | )% |
| Landing      fees and other rentals     |   |   | 197    |   |   |   | 206    |               |   |   | (9                        | )      |   |   | (4.4 | )% |
| Distribution      costs                 |   |   | 137    |   |   |   | 154    |               |   |   | (17                       | )      |   |   | (11.0 | )% |
| Maintenance,      materials and repairs |   |   | 159    |   |   |   | 152    |               |   |   | 7                         |   |   |   | 4.6 | % |
| Depreciation      and amortization      |   |   | 121    |   |   |   | 109    |               |   |   | 12                        |   |   |   | 11.0 | % |
| Passenger      services                 |   |   | 93     |   |   |   | 107    |               |   |   | (14                       | )      |   |   | (13.1 | )% |
| Special      charges                    |   |   | 13     |   |   |   | 80     |               |   |   | (67                       | )      |   | NM |   |
| Other                                   |   |   | 326    |   |   |   | 348    |               |   |   | (22                       | )      |   |   | (6.3 | )% |
|                                    |   |   | 2,686  |   |   |   | 3,549  |               |   |   | (863                      | )      |   |   | (24.3 | )% |
|                                    |   |   |   |   |   |   |   |               |   |   |                      |   |   |   |   |   |
| Operating      Income (Loss)            |   | $      | 111    |   |   | $      | (30    | )                  |   | $      | 141                       |   |   | NM |   |

|                                   |   |   |   |   | Increase |   |   | %      Increase |   |
|----------------------------------------|--------|--------|--------|--------|----------|--------|--------|-----------------|--------|
|                                   |   | 2009   |   |   | 2008     |   |   | (Decrease)      |   |   | (Decrease) |   |
|                                   |   |   |   |   |     |   |   |            |   |   |   |   |
| Operating      Revenue                 |   | $      | 520    |   |     | $      | 637    |            |   | $ | (117 | ) |   |   | (18.4 | )% |
|                                   |   |   |   |   |     |   |   |            |   |   |   |   |   |   |   |   |
| Operating      Expenses:               |   |   |   |   |     |   |   |            |   |   |   |   |   |   |   |   |
| Aircraft      fuel and related taxes   |   |   | 146    |   |     |   | 306    |            |   |   | (160 | ) |   |   | (52.3 | )%  |
| Wages,      salaries and related costs |   |   | 43     |   |     |   | 38     |            |   |   | 5 |   |   |   | 13.2 | % |
| Aircraft      rentals                  |   |   | 79     |   |     |   | 79     |            |   |   | - |   |   |   | - |   |
| Landing      fees and other rentals    |   |   | 25     |   |     |   | 19     |            |   |   | 6 |   |   |   | 31.6 | % |
| Regional      capacity purchase, net   |   |   | 211    |   |     |   | 247    |            |   |   | (36 | ) |   |   | (14.6 | )% |
| Distribution      costs                |   |   | 23     |   |     |   | 28     |            |   |   | (5 | ) |   |   | (17.9 | )% |
| Depreciation      and amortization     |   |   | 3      |   |     |   | 3      |            |   |   | - |   |   |   | - |   |
| Passenger      services                |   |   | 6      |   |     |   | 6      |            |   |   | - |   |   |   | - |   |
| Special      charges                   |   |   | 7      |   |     |   | 11     |            |   |   | (4 | ) |   | NM |   |
| Other                                  |   |   | 27     |   |     |   | 22     |            |   |   | 5 |   |   |   | 22.7 | % |
|                                   |   |   | 570    |   |     |   | 759    |            |   |   | (189 | ) |   |   | (24.9 | )% |
|                                   |   |   |   |   |     |   |   |            |   |   |   |   |   |   |   |   |
| Operating  Loss              |   | $      | (50    | )      |     | $      | (122   | )               |   | $ | (72 | ) |   |   | (59.0 | )% |

|                                                        |   | 2009   |   |   | 2008   |   |   | %      Increase(Decrease) |   |
|-------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|---------------------------|--------|
|                                                        |   |   |   |   |   |   |   |                      |   |
| Passengers      (thousands)                                 |   |   | 47,551 |   |   |   | 51,509 |                      |   |   | (7.7 | )% |
| Revenue      passenger miles (millions)                     |   |   | 67,573 |   |   |   | 71,862 |                      |   |   | (6.0 | )% |
| Available      seat miles (millions)                        |   |   | 83,264 |   |   |   | 89,062 |                      |   |   | (6.5 | )% |
| Passenger      load factor                                  |   |   | 81.2   | %      |   |   | 80.7   | %                         |   | 0.5      pts. |   |
| Passenger      revenue per available seat mile (cents)      |   |   | 10.01  |   |   |   | 11.94  |                      |   |   | (16.2 | )% |
| Average      yield per revenue passenger mile (cents)       |   |   | 12.33  |   |   |   | 14.80  |                      |   |   | (16.7 | )% |
| Average      price per gallon of fuel, including fuel taxes |   | $      | 1.97   |   |   | $      | 3.38   |                      |   |   | (41.7 | )% |
| Fuel      gallons consumed (millions)                       |   |   | 1,276  |   |   |   | 1,398  |                      |   |   | (8.7 | )% |

|                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   | Increase |   |   | %      Increase |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|----------|--------|--------|-----------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 2009   |   |   | 2008     |   |   | (Decrease)      |   |   | (Decrease) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |     |   |   |            |   |   |   |   |
| Operating      Revenue                                                                                                                                                                                                                                                                                                                                                                                                          |   | $      | 9,404  |   |     | $      | 11,771 |            |   | $ | (2,367 | ) |   |   | (20.1 | )% |
| Operating      Expenses                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 9,551  |   |     |   | 12,060 |            |   |   | (2,509 | ) |   |   | (20.8 | )% |
| Operating      Loss                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | (147   | )      |     |   | (289   | )               |   |   | (142 | ) |   |   | (49.1 | )% |
| Nonoperating      Income (Expense)                                                                                                                                                                                                                                                                                                                                                                                              |   |   | (220   | )      |     |   | (138   | )               |   |   | 82 |   |   |   | 59.4 | % |
| Income      Tax Benefit                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | -      |   |     |   | 110    |            |   |   | (110 | ) |   |   | (100.0 | )% |
|                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |     |   |   |            |   |   |   |   |   |   |   |   |
| Net      Loss                                                                    |   | $      | (367   | )      |     | $      | (317   | )               |   | $ | 50 |   |   |   | 15.8 | % |

|                    |   | Revenue            |   |   | Percentage      Increase (Decrease) in September 30, 2009 YTD      vs September 30, 2008 YTD |   |
|-------------------------|--------|--------------------|--------|--------|---------------------------------------------------------------------------------------------------|--------|
|                    |   | (in      millions) |   |   | Revenue                                                                                           |   |   | RASM |   |   | ASMs |   |
|                    |   |               |   |   |                                                                                              |   |   |   |   |   |   |   |
| Passenger      revenue: |   |               |   |   |                                                                                              |   |   |   |   |   |   |   |
| Domestic                |   | $                  | 3,415  |   |                                                                                              |   | (21.3 | )% |   |   | (13.4 | )% |   |   | (9.1 | )% |
| Trans-Atlantic          |   |               | 1,700  |   |                                                                                              |   | (27.0 | )% |   |   | (20.3 | )% |   |   | (8.4 | )% |
| Latin      America      |   |               | 1,126  |   |                                                                                              |   | (17.3 | )% |   |   | (17.0 | )% |   |   | (0.4 | )% |
| Pacific                 |   |               | 699    |   |                                                                                              |   | (10.4 | )% |   |   | (15.6 | )% |   |   | 6.1 | % |
| Total      Mainline     |   |               | 6,940  |   |                                                                                              |   | (21.2 | )% |   |   | (15.9 | )% |   |   | (6.3 | )% |
|                    |   |               |   |   |                                                                                              |   |   |   |   |   |   |   |   |   |   |   |
| Regional                |   |               | 1,391  |   |                                                                                              |   | (23.7 | )% |   |   | (17.1 | )% |   |   | (8.0 | )% |
|                    |   |               |   |   |                                                                                              |   |   |   |   |   |   |   |   |   |   |   |
| Total                   |   |               | 8,331  |   |                                                                                              |   | (21.6 | )% |   |   | (16.2 | )% |   |   | (6.5 | )% |
|                    |   |               |   |   |                                                                                              |   |   |   |   |   |   |   |   |   |   |   |
| Cargo                   |   |               | 259    |   |                                                                                              |   | (32.4 | )% |   |   |   |   |   |   |   |   |
| Other                   |   |               | 814    |   |                                                                                              |   | 7.8 | % |   |   |   |   |   |   |   |   |
|                    |   |               |   |   |                                                                                              |   |   |   |   |   |   |   |   |   |   |   |
| Operating      Revenue  |   | $                  | 9,404  |   |                                                                                              |   | (20.1 | )% |   |   |   |   |   |   |   |   |

|                                    |   | 2009   |   |   | 2008   |   |   | Increase(Decrease) |   |   | %      Increase(Decrease) |   |
|-----------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------------------|--------|--------|---------------------------|--------|
|                                    |   |   |   |   |   |   |   |               |   |   |                      |   |
| Aircraft      fuel and related taxes    |   | $      | 2,507  |   |   | $      | 4,722  |               |   | $      | (2,215                    | )      |   |   | (46.9 | )% |
| Wages,      salaries and related costs  |   |   | 2,358  |   |   |   | 2,197  |               |   |   | 161                       |   |   |   | 7.3 | % |
| Aircraft      rentals                   |   |   | 705    |   |   |   | 736    |               |   |   | (31                       | )      |   |   | (4.2 | )% |
| Landing      fees and other rentals     |   |   | 647    |   |   |   | 643    |               |   |   | 4                         |   |   |   | 0.6 | % |
| Regional      capacity purchase, net    |   |   | 641    |   |   |   | 838    |               |   |   | (197                      | )      |   |   | (23.5 | )% |
| Distribution      costs                 |   |   | 467    |   |   |   | 558    |               |   |   | (91                       | )      |   |   | (16.3 | )% |
| Maintenance,      materials and repairs |   |   | 473    |   |   |   | 478    |               |   |   | (5                        | )      |   |   | (1.0 | )% |
| Depreciation      and amortization      |   |   | 353    |   |   |   | 327    |               |   |   | 26                        |   |   |   | 8.0 | % |
| Passenger      services                 |   |   | 282    |   |   |   | 315    |               |   |   | (33                       | )      |   |   | (10.5 | )% |
| Special      charges                    |   |   | 68     |   |   |   | 141    |               |   |   | (73                       | )      |   | NM |   |
| Other                                   |   |   | 1,050  |   |   |   | 1,105  |               |   |   | (55                       | )      |   |   | (5.0 | )% |
|                                    |   | $      | 9,551  |   |   | $      | 12,060 |               |   | $      | (2,509                    | )      |   |   | (20.8 | )% |

| ·  | Aircraft fuel and      related taxes decreased due to a 41.7% decrease in consolidated jet      fuel prices and decreased flying.  Our average jet fuel price      per gallon including related taxes decreased to $1.97 in the first nine      months of 2009 from $3.38 in the first nine months of 2008.  Our      average jet fuel price includes losses related to our fuel hedging program      of $0.31 per gallon in the first nine months of 2009, compared to gains of      $0.04 per gallon in the first nine months of 2008. |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| ·  | Wages, salaries and      related costs increased primarily due to higher wage rates for      certain workgroups offset by a 6% reduction in the number of employees in      connection with capacity reductions.  Expenses in the first nine      months of 2009 also include $121 million of higher pension expense      resulting primarily from lower returns on plan assets.                                                                                                                                                                   |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| ·  | Aircraft      rentals decreased due to the retirement of leased Boeing 737      aircraft in the second half of 2008 and the first nine months of      2009.  New aircraft delivered in 2008 and the first nine months      of 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 nine months ended September 30 (in millions, except      percentage changes):                                                                                                                               |

|                                 |   |   |   |   |   | Increase   |   | %      Increase |
|--------------------------------------|--------|--------|--------|--------|--------|------------|--------|-----------------|
|                                 |   | 2009   |   | 2008   |   | (Decrease) |   | (Decrease)      |
|                                 |   |   |   |   |   |       |   |            |
| Capacity      purchase expenses      |   | $      | 641    |   |   | $          | 960    |            |   | $ | (319 | ) |   |   | (33.2 | )% |
| Aircraft      sublease income        |   |   | -      |   |   |       | (122   | )               |   |   | (122 | ) |   |   | (100.0 | )% |
| Regional      capacity purchase, net |   | $      | 641    |   |   | $          | 838    |            |   | $ | (197 | ) |   |   | (23.5 | )% |

|         | 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 the nine months ended September 30, 2009 because ExpressJet no longer      pays sublease rent for aircraft operated on our      behalf.  Sublease income of $17 million and $72 million on      aircraft operated by ExpressJet outside the scope of our capacity purchase      agreement with ExpressJet for the nine months ended September 30, 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| ·  | Passenger      services expenses decreased due to fewer meals and beverages in the      first nine months of 2009 compared to the first nine months of 2008,      resulting from the decreased demand for air travel in the weak economy,      and lower mishandled baggage expenses.                                                                                                                                                                                                                                                                                                                                                                                                       |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| ·  | Special      charges.  See Note 11 to our consolidated financial      statements contained in Item 1 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 how certain costs are handled under our      capacity purchase agreement with ExpressJet and foreign currency exchange      losses.                   |

| ·  | Net interest      expense increased $41 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 were $29 million in the first nine      months of 2008, reflecting the decline in value of student loan-related      auction rate securities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| ·  | Other nonoperating      income (expense) included fuel hedge ineffectiveness gains of $7      million and $18 million in the first nine months of 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      the first nine months of 2009 also included favorable foreign exchange      gains and an increase in the fair value of the cash surrender value of      company-owned life insurance policies.  In the first nine months      of 2008, we recorded income of $9 million related to our investment in      Copa, which we sold in May 2008. |

|                                                                           |   |   |   |   | Increase |   |
|--------------------------------------------------------------------------------|--------|--------|--------|--------|----------|--------|
|                                                                           |   | 2009   |   |   | 2008     |   |   | (Decrease) |   |
|                                                                           |   |   |   |   |     |   |   |   |   |
| Mainline      Operations:                                                      |   |   |   |   |     |   |   |   |   |
| Passengers      (thousands)                                                    |   |   | 34,619 |   |     |   | 37,714 |   |   |   | (8.2 | )% |
| Revenue      passenger miles (millions)                                        |   |   | 60,589 |   |     |   | 64,258 |   |   |   | (5.7 | )% |
| Available      seat miles (millions)                                           |   |   | 74,119 |   |     |   | 79,124 |   |   |   | (6.3 | )% |
| Cargo      ton miles (millions)                                                |   |   | 664    |   |     |   | 769 |   |   |   | (13.7 | )% |
| Passenger      load factor:                                                    |   |   |   |   |     |   |   |   |   |   |   |   |
| Mainline                                                                       |   |   | 81.7   | %      |     |   | 81.2 | % |   | 0.5      pts. |   |
| Domestic                                                                       |   |   | 84.9   | %      |     |   | 83.5 | % |   | 1.4 pts. |   |
| International                                                                  |   |   | 78.8   | %      |     |   | 78.9 | % |   | (0.1) pts. |   |
|                                                                           |   |   |   |   |     |   |   |   |   |   |   |   |
| Passenger      revenue per available seat mile (cents)                         |   |   | 9.36   |   |     |   | 11.13 |   |   |   | (15.9 | )% |
| Total      revenue per available seat mile (cents)                             |   |   | 10.75  |   |     |   | 12.51 |   |   |   | (14.1 | )% |
| Average      yield per revenue passenger mile (cents)                          |   |   | 11.45  |   |     |   | 13.71 |   |   |   | (16.5 | )% |
| Average      fare per revenue passenger                                        |   | $      | 202.62 |   |     | $      | 236.09 |   |   |   | (14.2 | )% |
|                                                                           |   |   |   |   |     |   |   |   |   |   |   |   |
| Cost      per available seat mile, including special      charges (cents) |   |   | 10.60  |   |     |   | 12.49 |   |   |   | (15.1 | )% |
| Special      charges per available seat mile (cents)                           |   |   | 0.08   |   |     |   | 0.15 |   |   | NM |   |
|                                                                           |   |   |   |   |     |   |   |   |   |   |   |   |
| Average      price per gallon of fuel, including fuel taxes                    |   | $      | 1.97   |   |     | $      | 3.38 |   |   |   | (41.7 | )% |
| Fuel      gallons consumed (millions)                                          |   |   | 1,061  |   |     |   | 1,159 |   |   |   | (8.5 | )% |
|                                                                           |   |   |   |   |     |   |   |   |   |   |   |   |
| Aircraft      in fleet at end of period (1)                                    |   |   | 338    |   |     |   | 351 |   |   |   | (3.7 | )% |
| Average      length of aircraft flight (miles)                                 |   |   | 1,549  |   |     |   | 1,496 |   |   |   | 3.5 | % |
| Average      daily utilization of each aircraft (hours)                        |   | 10:45  |   |   | 11:22    |   |   |   | (5.5 | )% |
|                                                                           |   |   |   |   |     |   |   |   |   |   |   |   |
| Regional      Operations:                                                      |   |   |   |   |     |   |   |   |   |   |   |   |
| Passengers      (thousands)                                                    |   |   | 12,932 |   |     |   | 13,795 |   |   |   | (6.3 | )% |
| Revenue      passenger miles (millions)                                        |   |   | 6,984  |   |     |   | 7,604 |   |   |   | (8.2 | )% |
| Available      seat miles (millions)                                           |   |   | 9,145  |   |     |   | 9,938 |   |   |   | (8.0 | )% |
| Passenger      load factor                                                     |   |   | 76.4   | %      |     |   | 76.5 | % |   | (0.1) pts. |   |
| Passenger      revenue per available seat mile (cents)                         |   |   | 15.22  |   |     |   | 18.35 |   |   |   | (17.1 | )% |
| Average      yield per revenue passenger mile (cents)                          |   |   | 19.93  |   |     |   | 23.98 |   |   |   | (16.9 | )% |
| Aircraft      in fleet at end of period (1)                                    |   |   | 266    |   |     |   | 279 |   |   |   | (4.7 | )% |

| (1) | Excludes      aircraft that were removed from service.  Regional aircraft      include aircraft operated by all carriers under capacity purchase      agreements, but exclude any aircraft subleased to other operators and      operated outside the scope of our capacity purchase      agreements. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                    |   | 2009   |   |   | 2008   |   |   | Increase(Decrease) |   |   | %      Increase(Decrease) |   |
|-----------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------------------|--------|--------|---------------------------|--------|
|                                    |   |   |   |   |   |   |   |               |   |   |                      |   |
| Operating      Revenue                  |   | $      | 7,970  |   |   | $      | 9,899  |               |   | $      | (1,929                    | )      |   |   | (19.5 | )% |
|                                    |   |   |   |   |   |   |   |               |   |   |                      |   |   |   |   |   |
| Operating      Expenses:                |   |   |   |   |   |   |   |               |   |   |                      |   |   |   |   |   |
| Aircraft      fuel and related taxes    |   |   | 2,088  |   |   |   | 3,912  |               |   |   | (1,824                    | )      |   |   | (46.6 | )% |
| Wages,      salaries and related costs  |   |   | 2,233  |   |   |   | 2,129  |               |   |   | 104                       |   |   |   | 4.9 | % |
| Aircraft      rentals                   |   |   | 469    |   |   |   | 500    |               |   |   | (31                       | )      |   |   | (6.2 | )% |
| Landing      fees and other rentals     |   |   | 570    |   |   |   | 593    |               |   |   | (23                       | )      |   |   | (3.9 | )% |
| Distribution      costs                 |   |   | 400    |   |   |   | 475    |               |   |   | (75                       | )      |   |   | (15.8 | )% |
| Maintenance,      materials and repairs |   |   | 473    |   |   |   | 478    |               |   |   | (5                        | )      |   |   | (1.0 | )% |
| Depreciation      and amortization      |   |   | 343    |   |   |   | 318    |               |   |   | 25                        |   |   |   | 7.9 | % |
| Passenger      services                 |   |   | 263    |   |   |   | 300    |               |   |   | (37                       | )      |   |   | (12.3 | )% |
| Special      charges                    |   |   | 61     |   |   |   | 115    |               |   |   | (54                       | )      |   | NM |   |
| Other                                   |   |   | 959    |   |   |   | 1,062  |               |   |   | (103                      | )      |   |   | (9.7 | )% |
|                                    |   |   | 7,859  |   |   |   | 9,882  |               |   |   | (2,023                    | )      |   |   | (20.5 | )% |
|                                    |   |   |   |   |   |   |   |               |   |   |                      |   |   |   |   |   |
| Operating      Income                   |   | $      | 111    |   |   | $      | 17     |               |   | $      | 94                        |   |   | NM |   |

|                                   |   |   |   |   | Increase |   |   | %      Increase |   |
|----------------------------------------|--------|--------|--------|--------|----------|--------|--------|-----------------|--------|
|                                   |   | 2009   |   |   | 2008     |   |   | (Decrease)      |   |   | (Decrease) |   |
|                                   |   |   |   |   |     |   |   |            |   |   |   |   |
| Operating      Revenue                 |   | $      | 1,434  |   |     | $      | 1,872  |            |   | $ | (438 | ) |   |   | (23.4 | )% |
|                                   |   |   |   |   |     |   |   |            |   |   |   |   |   |   |   |   |
| Operating      Expenses:               |   |   |   |   |     |   |   |            |   |   |   |   |   |   |   |   |
| Aircraft      fuel and related taxes   |   |   | 419    |   |     |   | 810    |            |   |   | (391 | ) |   |   | (48.3 | )% |
| Wages,      salaries and related costs |   |   | 125    |   |     |   | 68     |            |   |   | 57 |   |   |   | 83.8 | % |
| Aircraft      rentals                  |   |   | 236    |   |     |   | 236    |            |   |   | - |   |   |   | - |   |
| Landing      fees and other rentals    |   |   | 77     |   |     |   | 50     |            |   |   | 27 |   |   |   | 54.0 | % |
| Regional      capacity purchase, net   |   |   | 641    |   |     |   | 838    |            |   |   | (197 | ) |   |   | (23.5 | )% |
| Distribution      costs                |   |   | 67     |   |     |   | 83     |            |   |   | (16 | ) |   |   | (19.3 | )% |
| Depreciation      and amortization     |   |   | 10     |   |     |   | 9      |            |   |   | 1 |   |   |   | 11.1 | % |
| Passenger      services                |   |   | 19     |   |     |   | 15     |            |   |   | 4 |   |   |   | 26.7 | % |
| Special      charges                   |   |   | 7      |   |     |   | 26     |            |   |   | (19 | ) |   | NM |   |
| Other                                  |   |   | 91     |   |     |   | 43     |            |   |   | 48 |   |   | NM |   |
|                                   |   |   | 1,692  |   |     |   | 2,178  |            |   |   | (486 | ) |   |   | (22.3 | )% |
|                                   |   |   |   |   |     |   |   |            |   |   |   |   |   |   |   |   |
| Operating      Loss                    |   | $      | (258   | )      |     | $      | (306   | )               |   | $ | (48 | ) |   |   | (15.7 | )% |

|                                                                                          |   | 2009   |   |   | 2008   |   |   | Change |   |
|-----------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                          |   |   |   |   |   |   |   |   |   |
| Capital      expenditures                                                                     |   | $      | (301   | )      |   | $      | (281   | )      |   | $ | (20 | ) |
| Aircraft      purchase deposits refunded, net                                                 |   |   | 42     |   |   |   | 61     |   |   |   | (19 | ) |
| Proceeds      from sales of short-term investments, net                                       |   |   | 256    |   |   |   | 93     |   |   |   | 163 |   |
| Proceeds      from sales of property and equipment                                            |   |   | 46     |   |   |   | 76     |   |   |   | (30 | ) |
| Decrease      (increase) in restricted cash, cash equivalents and short-term      investments |   |   | 26     |   |   |   | (62    | )      |   |   | 88 |   |
| Proceeds      from sale of Copa stock                                                         |   |   | -      |   |   |   | 149    |   |   |   | (149 | ) |
| Proceeds      from sales of other long-term investments                                       |   |   | -      |   |   |   | 22     |   |   |   | (22 | ) |
| Expenditures      for airport operating rights                                                |   |   | (22    | )      |   |   | (109   | )      |   |   | 87 |   |
| Other      cash flows from investing activities                                               |   |   | (3     | )      |   |   | -      |   |   |   | (3 | ) |
| Net      cash provided by (used in) investing activities                                      |   | $      | 44     |   |   | $      | (51    | )      |   | $ | 95 |   |

| Fleet      related (excluding aircraft to be acquired through the issuance of      debt) |   | $      | 260 |   | (A)  |
|------------------------------------------------------------------------------------------|--------|--------|-----|--------|-----------|
| Non-fleet                                                                                |   |   | 120 |   |      |
| Spare      parts and capitalized interest                                                |   |   | 53  |   |      |
| Total                                                                                    |   | $      | 433 |   |      |
| Aircraft      purchase deposits refunded                                                 |   |   | (33 | )      |      |
| Projected      net capital expenditures                                                  |   | $      | 400 |   |      |

| (A) | Includes      lease termination payments on seven 737-500 aircraft we temporarily took      ownership of just prior to completing the sale of these aircraft to a      third party. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                |   | 2009   |    |    | 2008   |   |   | Change |   |
|---------------------------------------------------------------------|--------|--------|---------|---------|--------|--------|--------|--------|--------|
|                                                                |   |   |    |    |   |   |   |   |   |
| Payments      on long-term debt and capital lease obligations       |   | $      | (542    | )  |   | $      | (341   | )      |   | $ | (201 | ) |
| Proceeds      from issuance of long-term debt                       |   |   | 295     |    |   |   | 497    |   |   |   | (202 | ) |
| Proceeds      from public offering of common stock                  |   |   | 158     |    |   |   | 162    |   |   |   | (4 | ) |
| Proceeds      from issuance of common stock pursuant to stock plans |   |   |  6 |    |   |   | 13     |   |   |   | (7 | ) |
| Net      cash (used in) provided by financing activities            |   | $      | (83     | )       |   | $      | 331    |   |   | $ | (414 | ) |

| Investment      in student loan-related auction rate securities | Note      5  |
|-----------------------------------------------------------------|--------------|
| Fuel      hedges                                                | Note      6  |
| Pension      obligations                                        | Note      10 |
| Credit      card processing agreements                          | Note      15 |
| Credit      ratings                                             | Note      15 |

Item 3.  Quantitative andQualitative Disclosures about Market Risk.

           Therehave been no material changes in market risk from the information provided inExhibit 99.3, “Quantitative and Qualitative Disclosures About Market Risk(adjusted to reflect the retrospective application of FSP APB 14-1 and certainreclassifications related to fuel and related taxes)” to our Current Report onForm 8-K dated April 24, 2009, except as follows:

|                            |   | Maximum      Price           |   | Minimum      Price                          |
|---------------------------------|--------|------------------------------|--------|---------------------------------------------|
|                            |   | %      ofExpectedConsumption |   | WeightedAverage      Price(per      gallon) |   | %      ofExpectedConsumption |   | WeightedAverage      Price(per      gallon) |
|                            |   |                         |   |                                        |   |   |   |   |
| Fourth Quarter      2009        |   |                         |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Gulf      Coast jet fuel swaps  |   |                         | 15     | %                                           |   |   | $ | 1.83 |   |   |   |   | 15 | % |   |   | $ | 1.83 |   |   |
| WTI      crude oil swaps        |   |                         | 5      | %                                           |   |   |   | 1.36 |   |   |   |   | 5 | % |   |   |   | 1.36 |   |   |
| Total                           |   |                         | 20     | %                                           |   |   |   |   |   |   |   |   | 20 | % |   |   |   |   |   |   |
|                            |   |                         |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| First Quarter      2010         |   |                         |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gulf      Coast jet fuel swaps  |   |                         | 5      | %                                           |   |   | $ | 1.94 |   |   |   |   | 5 | % |   |   | $ | 1.94 |   |   |
| WTI      crude oil swaps        |   |                         | 1      | %                                           |   |   |   | 1.62 |   |   |   |   | 1 | % |   |   |   | 1.62 |   |   |
| WTI      crude oil call options |   |                         | 1      | %                                           |   |   |   | 1.88 |   |   |   |   | N/A |   |   |   |   | N/A |   |   |
| Total                           |   |                         | 7      | %                                           |   |   |   |   |   |   |   |   | 6 | % |   |   |   |   |   |   |

| · | 24%      of our projected Japanese yen-denominated cash inflows through      2010 |
|--------|-----------------------------------------------------------------------------------|
| · | 9%      of our euro-denominated cash inflows through  2009                        |

|              |   | Increase      inFair      Value |   | Increase      inUnderlying      Exposure |   | ResultingNet      Loss |
|-------------------|--------|---------------------------------|--------|------------------------------------------|--------|------------------------|
|              |   |                            |   |                                     |   |                   |
| Japanese      yen |   | $                               | 11     |                                     |   | $                      | (43 | ) |   | $ | (32 | ) |
| Euro              |   |                            | 1      |                                     |   |                   | (8 | ) |   |   | (7 | ) |

Item1.                  LegalProceedings.

           Duringthe period between 1997 and 2001, we reduced or capped the base commissions thatwe paid to domestic travel agents, and in 2002 we eliminated those basecommissions.  These actions were similar to those also taken by other aircarriers.  We are a defendant, along with several other air carriers,in two lawsuits brought by travel agencies that purportedly opted out of a priorclass action entitled Sarah Futch Hall d/b/a/Travel Specialists v. United Air Lines, et al. (U.S.D.C., EasternDistrict of North Carolina), filed on June 21, 2000, in which the defendantairlines prevailed on summary judgment that was upheld onappeal.  These similar suits against Continental and other majorcarriers allege violations of antitrust laws in reducing and ultimatelyeliminating the base commissions formerly paid to travel agents and seekunspecified money damages and certain injunctive relief under the Clayton Actand the Sherman Anti-Trust Act.  The pending cases, which currentlyinvolve a total of 90 travel agency plaintiffs, are Tam Travel, Inc. v. DeltaAir Lines, Inc., et al. (U.S.D.C., Northern District of California),filed on April 9, 2003 and Swope Travel Agency, et al.v. Orbitz LLC et al. (U.S.D.C., Eastern District of Texas), filed on June5, 2003.  By order dated November 10, 2003, these actions weretransferred and consolidated for pretrial purposes by the Judicial Panel onMultidistrict Litigation to the Northern District of Ohio.  On October29, 2007, the judge for the consolidated lawsuit dismissed the case for failureto meet the heightened pleading standards established earlier in 2007 by theU.S. Supreme Court's decision in Bell Atlantic Corp. v.Twombly.  On October 2, 2009, the U.S. Court of Appeals for theSixth Circuit affirmed the trial court’s dismissal of the case.  Theplaintiffs now have the opportunity to appeal that ruling to the U.S. SupremeCourt.  The plaintiffs in the Swope lawsuit, encompassing 43 travelagencies, have also alleged that certain claims raised in their lawsuit werenot, in fact, dismissed.  The trial court has not yet ruled on thatissue.  In the consolidated lawsuit, we believe the plaintiffs' claimsare without merit, and we intend to vigorously defend anyappeal.  Nevertheless, a final adverse court decision awardingsubstantial money damages could have a material adverse effect on our results ofoperations, financial condition or liquidity.

Item 1A.  Risk Factors

| ·  | an      inability to join or a delay in joining Star Alliance due to a lack of      applicable approvals or difficulty in satisfying entrance requirements,      including the requirement that we enter into certain bilateral agreements      with each member of Star Alliance;                                   |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                                                                                                                 |
| ·  | significant      revenue dilution as we wind down our participation in SkyTeam and/or      insufficient, or delay in receipt of, revenue from our participation in      Star Alliance, including an inability to maintain our key customer and      business relationships as we transition to Star Alliance;    and |
|         |                                                                                                                                                                                                                                                                                                                 |
| ·  | difficulties      integrating our technology processes with Star Alliance      members.                                                                                                                                                                                                                              |

Item4.                  Submissionof Matters to a Vote of Security Holders.

Item 5.  Other Information.

Exhibits.

|   | 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).              |
|--------|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |       |                                                                                                                                                                                                                                                                                           |
|   | 3.1(a)     | Certification      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).     |
|   |       |                                                                                                                                                                                                                                                                                           |
|   | 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).                                                            |
|   |       |                                                                                                                                                                                                                                                                                           |
|   | 10.1*      | 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).                                          |
|   |       |                                                                                                                                                                                                                                                                                           |
|   | 10.2       | Supplemental      Agreement No. 50, dated as of July 23, 2009, to Purchase Agreement No.      1951 (“P.A. 1951”), dated July 23, 1996, between Continental and The      Boeing Company (“Boeing”) relating to the purchase of Boeing 737      aircraft.  (1) |
|   |       |                                                                                                                                                                                                                                                                                           |
|   | 10.3       | Supplemental      Agreement No. 51, dated as of August 5, 2009, to P.A. 1951.      (1)                                                                                                                                                                                                         |
|   |       |                                                                                                                                                                                                                                                                                           |
|   | 10.4       | Supplemental      Agreement No. 52, dated as of August 31, 2009, to P.A.      1951.  (1)                                                                                                                                                                                             |
|   |       |                                                                                                                                                                                                                                                                                           |
|   | 10.5       | Supplemental      Agreement No. 17, dated as of August 31, 2009, to Purchase Agreement No.      2061, dated October 10, 1997, between Continental and Boeing relating to      the purchase of Boeing 777 aircraft.  (1)                                                              |
|   |       |                                                                                                                                                                                                                                                                                           |
|   | 12.1       | Computation      of Ratio of Earnings to Fixed Charges.                                                                                                                                                                                                                                        |
|   |       |                                                                                                                                                                                                                                                                                           |
|   | 31.1       | Rule      13a-14 (a)/15d-14 (a) Certification of Chief Executive      Officer.                                                                                                                                                                                                                 |
|   |       |                                                                                                                                                                                                                                                                                           |
|   | 31.2       | Rule      13a-14 (a)/15d-14 (a) Certification of Chief Financial      Officer.                                                                                                                                                                                                                 |
|   |       |                                                                                                                                                                                                                                                                                           |
|   | 32.1       | Section      1350 Certifications.                                                                                                                                                                                                                                                              |

| (1)   | Continental      has applied to the SEC for confidential treatment of a portion of this      exhibit. |
|-----------------|-------------------------------------------------------------------------------------------------------|

----

SIGNATURES

|                                                           | CONTINENTAL AIRLINES,      INC.           |
|----------------------------------------------------------------|---------------------------------------------------------------------------------------------|
|                                                           |                                                                                        | Registrant |
|                                                           |                                                                                        |   |
|                                                           |                                                                                        |   |
| Date:  October 21,      2009     | by:                                                                                         | /s/ Chris      Kenny                                |
|                                                           |                                                                                        | Chris      Kenny |
|                                                           |                                                                                        | Vice      President and Controller |
|                                                           |                                                                                        | (Principal      Accounting Officer) |

----

INDEX TO EXHIBITS

| 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).              |
|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |                                                                                                                                                                                                                                                                                           |
| 3.1(a)     | Certification      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).     |
|       |                                                                                                                                                                                                                                                                                           |
| 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).                                                            |
|       |                                                                                                                                                                                                                                                                                           |
| 10.1*      | 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).                                          |
|       |                                                                                                                                                                                                                                                                                           |
| 10.2       | Supplemental      Agreement No. 50, dated as of July 23, 2009, to Purchase Agreement No.      1951 (“P.A. 1951”), dated July 23, 1996, between Continental and The      Boeing Company (“Boeing”) relating to the purchase of Boeing 737      aircraft.  (1) |
|       |                                                                                                                                                                                                                                                                                           |
| 10.3       | Supplemental      Agreement No. 51, dated as of August 5, 2009, to P.A. 1951.      (1)                                                                                                                                                                                                         |
|       |                                                                                                                                                                                                                                                                                           |
| 10.4       | Supplemental      Agreement No. 52, dated as of August 31, 2009, to P.A.      1951.  (1)                                                                                                                                                                                             |
|       |                                                                                                                                                                                                                                                                                           |
| 10.5       | Supplemental      Agreement No. 17, dated as of August 31, 2009, to Purchase Agreement No.      2061, dated October 10, 1997, between Continental and Boeing relating to      the purchase of Boeing 777 aircraft.  (1)                                                              |
|       |                                                                                                                                                                                                                                                                                           |
| 12.1       | Computation      of Ratio of Earnings to Fixed Charges.                                                                                                                                                                                                                                        |
|       |                                                                                                                                                                                                                                                                                           |
| 31.1       | Rule      13a-14 (a)/15d-14 (a) Certification of Chief Executive      Officer.                                                                                                                                                                                                                 |
|       |                                                                                                                                                                                                                                                                                           |
| 31.2       | Rule      13a-14 (a)/15d-14 (a) Certification of Chief Financial      Officer.                                                                                                                                                                                                                 |
|       |                                                                                                                                                                                                                                                                                           |
| 32.1       | Section      1350 Certifications.                                                                                                                                                                                                                                                              |

| (1)   | Continental      has applied to the SEC for confidential treatment of a portion of this      exhibit. |
|-----------------|-------------------------------------------------------------------------------------------------------|