HOUSTON -- Continental Airlines will distribute a record $158 million in profit sharing payments to tens of thousands of employees at more than 200 locations worldwide on Feb. 14, 2008.
"Thanks to the outstanding efforts of my co-workers over the past year, Continental will be distributing $158 million in profit sharing, the largest profit sharing payout in our company's history," Continental Chairman and CEO Larry Kellner says. "We continue to work together to deliver solid financial and operational results and I am extremely delighted to share the company's success with our more than 45,000 co-workers worldwide."
When checks are distributed on Valentine's Day this year, Continental employees will have received $269 million in profit sharing payments in the last 12 months. This is the second consecutive year that the company will be sharing profits with employees. Last year, Continental paid $111 million in profit sharing for 2006.
Kellner will hand out profit sharing checks on Valentine's Day at the airline's New York hub at Newark Liberty International Airport, while President Jeff Smisek will distribute checks to the airline's employees at its Houston hub at Bush Intercontinental Airport and other Houston locations. Other Continental executives will appear at dozens of locations throughout the Continental system, including Los Angeles, Orlando, Salt Lake City, London, Mexico City and Tokyo, to personally distribute profit sharing checks and celebrate the record achievement.
Continental'st profit-sharing plan shares 30 percent of the first $250 million of pre-tax income, 25 percent of the next $250 million and 20 percent of amounts over $500 million.
In addition to profit sharing, Continental's employees receive cash payments for reaching on-time performance goals. For 2007, employees earned $33 million in on-time incentive payments, or $755 per employee, for finishing 10 out of 12 months among the top three of the network carriers for on time performance.
The on-time arrival incentive program pays monthly cash payments when the airline hits targets for on-time arrivals as reported by DOT. Eligible employees receive $100 when Continental comes in first among the six network carriers in on-time performance. Employees receive $65 when the company finishes second or third among the six network carriers or when Continental's on-time percentage is 80 or better, even if the company does not finish in the top three.
For more company information, visit www.continental.com.