Exhibit 11.1
Page 1 of 6
CONTINENTAL AIRLINES, INC.
STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS (1)(2)
(In thousands of dollars, except per share data)
Three Months Ended Nine Months Ended
September 30, 1996 September 30, 1996
Primary:
Weighted average shares
outstanding. . . . . . . . . . 53,423,575 53,190,790
Dilutive effect of outstanding
stock options, warrants and
restricted stock grants
(as determined by the
application of the
treasury stock method) . . . . 11,109,142 11,550,495
Weighted average number of
common shares outstanding,
as adjusted. . . . . . . . . . 64,532,717 64,741,285
Income before extraordinary
loss applicable to
common shares. . . . . . . . . $ 22,704 $ 275,530
Add interest expense
associated with the assumed
reduction of borrowings,
net of federal income
tax effect . . . . . . . . . . - -
Income before extraordinary
loss, as adjusted. . . . . . . $ 22,704 $ 275,530
Per share amount. . . . . . . . $ 0.35 $ 4.26
(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.
(2) Excludes extraordinary net loss on early extinguishment of debt of $6.3
million.
Exhibit 11.1
Page 2 of 6
CONTINENTAL AIRLINES, INC.
STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS (1)
(In thousands of dollars, except per share data)
Three Months Nine Months
Ended September 30, Ended September 30,
1996 1995 1996 1995
Primary:
Weighted average shares
outstanding. . . . . . . 53,423,575 52,101,304 53,190,790 51,555,420
Dilutive effect of
outstanding stock
options, warrants and
restricted stock grants
(as determined by the
application of the
treasury stock method) . 11,109,142 18,631,626 11,550,495 12,958,756
Weighted average number
of common shares out-
standing, as adjusted. . 64,532,717 70,732,930 64,741,285 64,514,176
Income applicable
to common shares . . . . $ 16,424 $ 105,876 $ 269,250 $ 174,642
Add interest expense
associated with the
assumed reduction of
borrowings, net of
federal income tax
effect . . . . . . . . . - 3,273 - 14,673
Income, as adjusted . . . $ 16,424 $ 109,149 $ 269,250 $ 189,315
Per share amount. . . . . $ 0.25 $ 1.54 $ 4.16 $ 2.93
(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 3 of 6
CONTINENTAL AIRLINES, INC.
STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS (1)(2)
(In thousands of dollars, except per share data)
Three Months Ended Nine Months Ended
September 30, 1996 September 30, 1996
Fully diluted:
Weighted average shares
outstanding. . . . . . . . . . 53,423,575 53,190,790
Dilutive effect of
outstanding stock
options, warrants and
restricted stock grants
(as determined by the
application of the
treasury stock method) . . . . 11,109,142 12,066,413
Dilutive effect of
Series A debentures. . . . . . - 858,443
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 5,245,514
Weighted average number
of common shares out-
standing, as adjusted. . . . . 82,482,792 81,694,080
(continued on next page)
Exhibit 11.1
Page 4 of 6
CONTINENTAL AIRLINES, INC.
STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS (1)(2)
(In thousands of dollars, except per share data)
Three Months Ended Nine Months Ended
September 30, 1996 September 30, 1996
Income before extraordinary
loss applicable to
common shares. . . . . . . . . $ 22,704 $ 275,530
Add interest expense
associated with the
assumed reduction of
borrowings, net of
federal income tax
effect . . . . . . . . . . . . - -
Add interest expense
associated with the
assumed conversion of
convertible debentures . . . . - 440
Add interest expense
associated with the
assumed conversion of
8-1/2% convertible
trust originated
preferred securities,
net of federal income
tax effect . . . . . . . . . . 3,203 11,651
Add interest expense
associated with the
assumed conversion of
6-3/4% convertible
subordinated notes,
net of federal
income tax effect. . . . . . . 2,342 4,912
Income before extraordinary
loss, as adjusted. . . . . . . $ 28,249 $ 292,533
Per share amount. . . . . $ 0.34 $ 3.58
(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.
(2) Excludes extraordinary net loss on early extinguishment of debt of $6.3
million.
Exhibit 11.1
Page 5 of 6
CONTINENTAL AIRLINES, INC.
STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS (1)
(In thousands of dollars, except per share data)
Three Months Nine Months
Ended September 30, Ended September 30,
1996 1995 1996 1995
Fully diluted:
Weighted average shares
outstanding. . . . . . . 53,423,575 52,101,304 53,190,790 51,555,420
Dilutive effect of
outstanding stock
options, warrants and
restricted stock grants
(as determined by the
application of the
treasury stock method) . 11,109,142 18,631,626 12,066,413 12,917,706
Dilutive effect of
Series A debentures. . . - 11,206,692 858,443 3,776,614
Dilutive effect of
8-1/2% convertible
trust originated
preferred securities . . - - 10,332,920 -
Dilutive effect of
6-3/4% convertible
subordinated notes . . . - - 5,245,514 -
Weighted average number
of common shares out-
standing, as adjusted. . 64,532,717 81,939,622 81,694,080 68,249,740
(continued on next page)
Exhibit 11.1
Page 6 of 6
CONTINENTAL AIRLINES, INC.
STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS (1)
(In thousands of dollars, except per share data)
Three Months Nine Months
Ended September 30, Ended September 30,
1996 1995 1996 1995
Income applicable
to common shares . . . . $ 16,424 $ 105,876 $ 269,250 $ 174,642
Add interest expense
associated with the
assumed reduction of
borrowings, net of
federal income tax
effect . . . . . . . . . - 2,067 - 6,093
Add interest expense
associated with the
assumed conversion of
convertible debentures . - 1,849 440 1,849
Add interest expense
associated with the
assumed conversion of
8-1/2% convertible
trust originated
preferred securities,
net of federal income
tax effect . . . . . . . - - 11,651 -
Add interest expense
associated with the
assumed conversion of
6-3/4% convertible
subordinated notes,
net of federal
income tax effect. . . . - - 4,912 -
Income, as adjusted . . . $ 16,424 $ 109,792 $ 286,253 $ 182,584
Per share amount. . . . . $ 0.25 $ 1.34 $ 3.50 $ 2.68
(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.