Exhibit 11.1
Page 1 of 3
CONTINENTAL AIRLINES, INC.
STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS (1)
(In thousands of dollars, except per share data)
Three Months Six Months
Ended June 30, Ended June 30,
1996 1995 1996 1995
Primary:
Weighted average shares
outstanding. . . . . . . 53,174,956 51,375,872 53,074,397 51,277,954
Dilutive effect of
outstanding stock
options, warrants and
restricted stock grants
(as determined by the
application of the
treasury stock method) . 12,447,030 18,653,522 11,771,173 18,686,822
Weighted average number
of common shares out-
standing, as adjusted. . 65,621,986 70,029,394 64,845,570 69,964,776
Income applicable
to common shares . . . . $ 166,203 $ 100,436 $ 252,825 $ 68,766
Add interest expense
associated with the
assumed reduction of
borrowings, net of
federal income tax
effect . . . . . . . . . - 5,321 - 11,940
Income, as adjusted . . . $ 166,203 $ 105,757 $ 252,825 $ 80,706
Per share amount. . . . . $ 2.53 $ 1.51 $ 3.90 $ 1.15
(1) On June 26, 1996, the Board of Directors of the Company declared a two-
for-one stock split (the "Stock Split") pursuant to which (a) one share
of the Company's Class A common stock, par value $.01 per share, was
issued for each share of Class A common stock outstanding on July 2,
1996 (the "Record Date") and (b) one share of the Company's Class B
common stock, par value $.01 per share, was issued for each share of
Class B common stock outstanding on the Record Date. Shares issuable
pursuant to the Stock Split were distributed on or about July 16, 1996.
All share and earnings per share information for prior periods has been
adjusted for the Stock Split.
Exhibit 11.1
Page 2 of 3
CONTINENTAL AIRLINES, INC.
STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS (1)
(In thousands of dollars, except per share data)
Three Months Six Months
Ended June 30, Ended June 30,
1996 1995 1996 1995
Fully diluted:
Weighted average shares
outstanding. . . . . . . 53,174,956 51,375,872 53,074,397 51,277,954
Dilutive effect of
outstanding stock
options, warrants and
restricted stock grants
(as determined by the
application of the
treasury stock method) . 12,847,344 18,653,522 12,545,049 18,686,822
Dilutive effect of
Series A debentures. . . - - 1,287,665 -
Dilutive effect of
8-1/2% convertible
trust originated
preferred securities . . 10,332,920 - 10,332,920 -
Dilutive effect of
6-3/4% convertible
subordinated notes . . . 7,617,155 - 4,059,693 -
Weighted average number
of common shares out-
standing, as adjusted. . 83,972,375 70,029,394 81,299,724 69,964,776
(continued on next page)
Exhibit 11.1
Page 3 of 3
CONTINENTAL AIRLINES, INC.
STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS (1)
(In thousands of dollars, except per share data)
Three Months Six Months
Ended June 30, Ended June 30,
1996 1995 1996 1995
Income applicable
to common shares . . . . $ 166,203 $ 100,436 $ 252,825 $ 68,766
Add interest expense
associated with the
assumed reduction of
borrowings, net of
federal income tax
effect . . . . . . . . . - 4,175 - 8,395
Add interest expense
associated with the
assumed conversion of
convertible debentures . - - 442 -
Add interest expense
associated with the
assumed conversion of
8-1/2% convertible
trust originated
preferred securities,
net of federal income
tax effect . . . . . . . 3,177 - 8,472 -
Add interest expense
associated with the
assumed conversion of
6-3/4% convertible
subordinated notes,
net of federal
income tax effect. . . . 2,322 - 2,577 -
Income, as adjusted . . . $ 171,702 $ 104,611 $ 264,316 $ 77,161
Per share amount. . . . . $ 2.04 $ 1.49 $ 3.25 $ 1.10
(1) On June 26, 1996, the Board of Directors of the Company declared a two-
for-one stock split (the "Stock Split") pursuant to which (a) one share
of the Company's Class A common stock, par value $.01 per share, was
issued for each share of Class A common stock outstanding on July 2,
1996 (the "Record Date") and (b) one share of the Company's Class B
common stock, par value $.01 per share, was issued for each share of
Class B common stock outstanding on the Record Date. Shares issuable
pursuant to the Stock Split were distributed on or about July 16, 1996.
All share and earnings per share information for prior periods has been
adjusted for the Stock Split.