AeroMexico and Continental Airlines have signed an alliance agreement for flights between the United States and Mexico beginning in the first quarter of 2004.

The 10-year agreement was signed by Gordon Bethune, Chairman and Chief Executive Officer of Continental Airlines, and by Arturo Barahona, Chief Executive Officer of AeroMexico.

With this strategic alliance, AeroMexico will be able to offer a greater number of flights between the United States and Mexico, thereby better serving the needs of our passengers, said Barahona.

This agreement will be extremely beneficial to our passengers, particularly business travelers, who seek greater choice and convenience when traveling between the United States and Mexico, said Bethune.

The codeshare flights will simplify travel between the United States and Mexico by facilitating connections between the two airlines. All codesharing is subject to government approvals.

The airlines will offer interline electronic ticketing enabling travelers to use a single e-ticket for itineraries that include travel on both carriers. Travelers on both airlines will also have a greater selection of flights in addition to a larger selection of destinations and flight schedules. Details on the routes and effective dates are expected to be announced later.

Members of AeroMexico`s Club Premier and Continental`s OnePass frequent flyer programs will be able to accrue and redeem miles on each other`s worldwide networks. In addition, the airlines will offer airport lounge reciprocity.

AeroMexico has also renewed its membership in the SkyTeam alliance for another 10 years, offering its passengers convenient connections with airlines in the United States, Europe and Asia to more than 500 destinations in 114 countries around the world. AeroMexico is a founding member of SkyTeam. Continental is anticipating joining SkyTeam in 2004.