Ex737Driver
Contract 2020????
- Joined
- Aug 14, 2004
- Posts
- 1,240
Not spectacular but no write downs and the cash position increased almost $1B. Census was for a $55M loss.
Continental swings to second-quarter loss
Cash position grows despite record-high fuel prices
By Christopher Hinton, MarketWatch
Last update: 8:17 a.m. EDT July 17, 2008
NEW YORK (MarketWatch) -- Continental Airlines said Thursday it had swung to a second-quarter loss as record high fuel prices, weakening economic conditions and a weak dollar have resulted in "the worst financial environment for U.S. network carriers since the 9/11 terrorist attacks."
For the recent quarter, the Houston-based carrier reported a loss of $3 million, or 3 cents a share, compared with net income of $228 million, or $2.03, in the year-earlier period.
On an adjusted basis, Continental said it lost 25 cents a share, compared to the Wall Street consensus of 45 cents a share, according to a poll from FactSet Research.
Revenue rose 9% to $4.04 billion from $3.71 billion. Further, the company's cash position at the end of the quarter stood at $3.4 billion in unrestricted cash and short-term investments, compared to $2.52 billion at the end of the first quarter.
Shares of Continental jumped 2.1% to $9.38 in premarket trading.
On Wednesday, rivals Delta Air Lines and AMR Corp. also reported better-than-expected results that sparked a day-long rally across the sector. See full story.
Continental, like the wider industry, is facing numerous headwinds including record-high fuel costs and a weaker U.S. economy. With consolidation off the table due to the expense of financing, airlines have entered their own game of "Survivor" by raising enough cash to ward off possible bankruptcies as fuel bills vaporize bottom lines.
Responding to the challenging environment, the carrier said it raised more cash and credit, and reaffirmed its commitment to reducing its overall capacity as it grounds older, more expensive aircraft and terminates lower-yielding routes.
The company intends to cut 10% from its mainline domestic capacity beginning in September, and will reduce its domestic mainline departures by 15.4%. On a consolidated basis, the carrier will remove 6.7% capacity in the fourth quarter.
Continental has also accelerated the retirement of 67 Boeing Co.737-300 and 737-500 planes, removing the majority of its least full-efficient aircraft from its fleet by the end of 2009.
The groundings will result in the loss of about 3,000 jobs, the carrier said.
The second-quarter load factor -- the percentage of seats filled with passengers -- narrowed to 81.4% from 83.2% a year earlier.
Shares outstanding fell 14% to 99 million from 115 million.
Continental swings to second-quarter loss
Cash position grows despite record-high fuel prices
By Christopher Hinton, MarketWatch
Last update: 8:17 a.m. EDT July 17, 2008
NEW YORK (MarketWatch) -- Continental Airlines said Thursday it had swung to a second-quarter loss as record high fuel prices, weakening economic conditions and a weak dollar have resulted in "the worst financial environment for U.S. network carriers since the 9/11 terrorist attacks."
For the recent quarter, the Houston-based carrier reported a loss of $3 million, or 3 cents a share, compared with net income of $228 million, or $2.03, in the year-earlier period.
On an adjusted basis, Continental said it lost 25 cents a share, compared to the Wall Street consensus of 45 cents a share, according to a poll from FactSet Research.
Revenue rose 9% to $4.04 billion from $3.71 billion. Further, the company's cash position at the end of the quarter stood at $3.4 billion in unrestricted cash and short-term investments, compared to $2.52 billion at the end of the first quarter.
Shares of Continental jumped 2.1% to $9.38 in premarket trading.
On Wednesday, rivals Delta Air Lines and AMR Corp. also reported better-than-expected results that sparked a day-long rally across the sector. See full story.
Continental, like the wider industry, is facing numerous headwinds including record-high fuel costs and a weaker U.S. economy. With consolidation off the table due to the expense of financing, airlines have entered their own game of "Survivor" by raising enough cash to ward off possible bankruptcies as fuel bills vaporize bottom lines.
Responding to the challenging environment, the carrier said it raised more cash and credit, and reaffirmed its commitment to reducing its overall capacity as it grounds older, more expensive aircraft and terminates lower-yielding routes.
The company intends to cut 10% from its mainline domestic capacity beginning in September, and will reduce its domestic mainline departures by 15.4%. On a consolidated basis, the carrier will remove 6.7% capacity in the fourth quarter.
Continental has also accelerated the retirement of 67 Boeing Co.737-300 and 737-500 planes, removing the majority of its least full-efficient aircraft from its fleet by the end of 2009.
The groundings will result in the loss of about 3,000 jobs, the carrier said.
The second-quarter load factor -- the percentage of seats filled with passengers -- narrowed to 81.4% from 83.2% a year earlier.
Shares outstanding fell 14% to 99 million from 115 million.
