NEW YORK, Dec 12 (Reuters) - Continental Airlines on Tuesday forecast higher fourth-quarter operating costs and said revenue growth would slow in December.
The combination of tepid revenue growth and higher costs could plunge the high-flying carrier into the red in the fourth quarter. Its shares fell more than 4 percent.
"Tied together, Continental appears headed to a slight loss in the quarter versus consensus expectations of a small profit," said JP Morgan analyst Jamie Baker in a note.
He said the new guidance suggests a loss of 10 cents a share compared with his previous forecast of a profit of 10 cents.
Michael Linenberg, an analyst with Merrill Lynch, lowered his fourth-quarter forecast for Continental to break-even from a profit of 25 cents a share.
According to Reuters Estimates, Wall Street analysts expect Continental to earn 18 cents a share.
