CAL Adds More Capacity

[Ex737Driver]

Continental Airlines Aims to Up Capacity
Thursday February 23, 12:57 pm ET Continental Airlines Aiming to Increase Capacity in Domestic and International Markets
CHICAGO (AP) -- Continental Airlines Inc. expects to expand route capacity in both the domestic and international markets this year, President Jeff Smisek said Thursday.
Houston-based Continental expects overall capacity to rise about 8 percent, with domestic business expanding 4 percent, at a time when most big airlines are cutting U.S. capacity, Smisek said in a Webcast of an airline investor conference in New York sponsored by JP Morgan.
"A significant portion of our domestic growth is in response to incursion of low-cost carriers in our hub," Smisek said. "We will not let any of our competitors take our customers on price."
Continental shares rose 81 cents, or 3.5 percent, to $23.69 in midday trading on the New York Stock Exchange.
Other domestic expansion will include more connecting flights to international routes. By the end of 2006, 47 percent of Continental's business will be in international markets.
Continental is focusing on returning to sustained profitability, Smisek said. The key for airlines is to emphasize margins ahead of per-passenger revenue or costs.
Analysts are expecting 2006 earnings of $1.84 per share, up from a loss of $2.93 last year, according to Thomson Financial.
On Thursday Continental raised its expectation for liquidity at the end of the first quarter to a range of $1.8 billion to $1.9 billion to a range of $1.9 billion to $2 billion.
In answer to analysts questions, Smisek said a proposed rule change by the Department of Transportation that would give foreign owners more say in how U.S. airlines are run "is unlawful. We intend to challenge it in court." At the same time, he said, "we are not opposed in increasing access to foreign capital" for U.S. airlines.

 

[007]

Continental Airlines Aims to Up Capacity
Thursday February 23, 12:57 pm ET Continental Airlines Aiming to Increase Capacity in Domestic and International Markets
CHICAGO (AP) -- Continental Airlines Inc. expects to expand route capacity in both the domestic and international markets this year, President Jeff Smisek said Thursday.
Houston-based Continental expects overall capacity to rise about 8 percent, with domestic business expanding 4 percent, at a time when most big airlines are cutting U.S. capacity, Smisek said in a Webcast of an airline investor conference in New York sponsored by JP Morgan.
"A significant portion of our domestic growth is in response to incursion of low-cost carriers in our hub," Smisek said. "We will not let any of our competitors take our customers on price."
Continental shares rose 81 cents, or 3.5 percent, to $23.69 in midday trading on the New York Stock Exchange.
Other domestic expansion will include more connecting flights to international routes. By the end of 2006, 47 percent of Continental's business will be in international markets.
Continental is focusing on returning to sustained profitability, Smisek said. The key for airlines is to emphasize margins ahead of per-passenger revenue or costs.
Analysts are expecting 2006 earnings of $1.84 per share, up from a loss of $2.93 last year, according to Thomson Financial.
On Thursday Continental raised its expectation for liquidity at the end of the first quarter to a range of $1.8 billion to $1.9 billion to a range of $1.9 billion to $2 billion.
In answer to analysts questions, Smisek said a proposed rule change by the Department of Transportation that would give foreign owners more say in how U.S. airlines are run "is unlawful. We intend to challenge it in court." At the same time, he said, "we are not opposed in increasing access to foreign capital" for U.S. airlines.

Blablablablabla,yadayadayada.

 

[Uppercrust]

I have heard through the grapevine that CAL is looking at a big expansion into JFK a few years down the road. You know....... in case something happens (Chapt 11) to a carrier over there.

 

[BLUE BAYOU]

I have heard through the grapevine that CAL is looking at a big expansion into JFK a few years down the road. You know....... in case something happens (Chapt 11) to a carrier over there.

What a fracking ridiculous post... Hey, my plane is bigger than your plane, jerk!!!

 

[flatspin7]

why would CAL want to split their operation between EWR which is hugely dominated by CAL and where all of their domestic to Internation feed occurs and JFK?

 

[G4G5]

Because Delta makes a tremendous amount of money off of their European JFK operation. NY and the surrounding areas provides a tremendous amount of O&D European traffic.
The problem is that the Delta facitlity at JFK is tired and old. They have not done a thing to it since they purchased it from Pan Am (it was scheduled for a major renovation, back in the Leo days, pre Ch11).