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Continental 2Q Loss

Secret Squirrel

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http://news.yahoo.com/s/ap/20090721...MDdoaGQxBGFzc2V0Ay9hcC8yMDA5MDcyMS9hcF9vbl9ia
V9nZS91c19lYXJuc19jb250aW5lbnRhbF9haXJsaW5lcwRjcG9zAzQEcG9zAz
QEc2VjA3luX3RvcF9zdG9yaWVzBHNsawNjb250aW5lbnRhbGE-

DALLAS – Continental Airlines Inc. said Tuesday it will cut 1,700 jobs and raise fees for checking luggage after it posted a large loss for the second quarter amid falling traffic.
The Houston-based airline said Tuesday it lost $213 million, or $1.72 per share in the quarter ended June 30, compared with a loss of $5 million, or 5 cents per share, a year earlier.
Excluding one-time charges, the loss was $169 million, or $1.36 per share. Analysts expected a loss of $1.35 per share excluding charges, according to a survey by Thomson Reuters.
Revenue tumbled 22.7 percent, to $3.13 billion, nearly matching the $3.14 billion forecast by analysts.
The 1,700 jobs cuts Continental announced amount to about 3.4 percent of its work force. They are on top of plans to eliminate 500 reservations agents and to put 700 flight attendants on leave.
Continental aims to raise $100 million a year with higher fees. The carrier boosted by $5 the fees for checking bags on U.S. flights — to $20 for a first bag, $30 for a second for passengers who check bags at the airport instead of online. The change took effect immediately for flights on or after Aug. 19.
The airline also added $5 to the fee for booking a reservation over the phone, and it said more revenue-raising measures were coming.
Chairman and CEO Lawrence Kellner said a key measurement of revenue as a ratio of capacity "appears to be bottoming out," but added "it is doing so at low levels and we must take aggressive steps to increase revenue and reduce costs."
Traffic measured in miles flown by paying passengers fell 6.4 percent compared with the second quarter of last year. Continental, including its regional affiliates, cut capacity even more sharply, by 7.8 percent, resulting in slightly fuller planes despite fewer passengers.
Airlines can cut capacity by flying fewer flights or using smaller planes.
The airline caught a break from fuel prices that were lower than last year, resulting in a savings of $762 million or 46 percent. But revenue dropped by $918 million from a year ago.
The swine flu outbreak, which devastated traffic to Mexico for a time, cost $50 million in lost revenue. But the recession was a bigger factor, as it cut into travel demand, especially among business travelers who often pay higher last-minute fares.
Continental took $44 million in charges during the second quarter to write down the value of it planes in the current airline industry slump.
Continental faces big changes in the months ahead. CEO Kellner announced last week that he is stepping down at year end and will be replaced by President Jeff Smisek.
In October, Continental expects to join the Star Alliance that includes United Airlines and Lufthansa. The Transportation Department recently approved antitrust immunity for Continental to work closely with its new partners in setting prices and schedules on international service.
 

ACL65PILOT

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Oh boy. Here is comes and with UAUA making themselves look so good, I guess they can be the buyer now ;)
 

contrail67

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UAL reported a 1 time gain from hedging...this is not the first time a company had to write something like that in their numbers ....loss or gain.

It is interesting the timing though. Who knows.

I still say everything is already charted out....none of us know how though.
 

BeachBummer

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I still say everything is already charted out....none of us know how though.


UAL make old 73's go away.

CAL buy new 73's.

UAL+CAL furlough many workers.

Merger happen UAL=CAL make Unitanental

New airline ~~ US air lookalike.

End to all movment and expectations for the forseeable future
 
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whatitdoing?

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I tend to agree. After reading the transcript of the earnings report, a merger is so going to happen. We be f***** at CAL. Welcome to 10 year furlough and the soup line. Screw this airline, I'm flying around .82 with the boards out.
 

contrail67

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UAL make old 73's go away.

CAL buy new 73's.

UAL+CAL furlough many workers.

Merger happen UAL=CAL make Unitanental

New airline ~~ US air lookalike.

End to all movment and expectations for the forseeable future

OK....UAL 737's go away and CAL new 737's are coming on the property...won't that replace the old ones?....and then they are going to have to staff those new orders that are coming in....with some of the furloughed pilots? UAL is mostly furloughing because they parked the old 737's...it just seems logical if the old models are replaced, then somebody is going to have to be at the controls of those aircraft.

I think the cuts have already been made...not to say that some more might happen but I don't see this massive furlough...we are seeing it now.

I am just going off the aircraft orders on Airlinepilotcentral....for CAL.
 
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BeachBummer

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Jan 27, 2005
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.71yrs
CAL is flying those 73's right now... with further cuts to capacity comming. United hasn't grown in years. CAL is just shuffling around right now, like a retard playing with thier own poo.

Just speculating, but it's not going to be pretty.

I truly hope to be very very wrong.

GoodLuck to all, I have more than afew friends on both sides of the fence in this fight.
 
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