Continental Profit

[A350]

Congrats to the folks at CAL on their fabulous results for the 3Q.....

We should all be in awe.

A350

 

[Ex737Driver]

That's some pretty tough sarcasm for a $61M profit. Were you perhaps hoping for bad news? Wait it gets better. CAL plans to raise $200M with the sale of stock.

http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh25275_2005-10-18_23-25-31_wen1415_newsml

Continental prices public offering at $11.35
Tue Oct 18, 2005 07:25 PM ET
LOS ANGELES, Oct 18 (Reuters) - Continental Airlines Inc. (CAL.N: Quote, Profile, Research) on Tuesday said it planned to offer 18 million shares of its Class B Common Stock at $11.35 per share.

Continental expects the issuance and delivery of the shares to occur on Oct. 24. Continental has granted underwriter UBS Investment Bank a 30-day option to purchase an additional 2.7 million shares of common stock to cover over-allotments.

 

[A350]

737 Driver......

I think you need to re-read the post....I am in awe. Any airline that can make that kind of $$$ in this environment should be damn proud of themselves, without hedges too!

No sarcasm here.

A350

 

[Ex737Driver]

Sorry. Just sort of come to expect it here. Thanks though.

 

[BR549]

Just wait till this thursday to be in awe!

 

[Truckdriver]

Just wait till this thursday to be in awe!

Yeah, thats when XJT will post a $30 million dollar profit for the quarter. So CAL and it's only regional parter will come in at close to $100 mill for the quarter. Just imagine what they would be posting if Jet-A was at 70 cents a gallon like it was a few years ago.

 

[PropsR4Boats]

Just imagine how much they would’ve made if Mesa where doing X Jets flying for half the price.

 

[mckpickle]

Just imagine how much they would’ve made if Mesa where doing X Jets flying for half the price.

They would of made nothing.........since no one would have made their connections/ever flown CAL again after flying MESA.

 

[scarlet]

CAL has a business PLAN and the Exces. are using their college degrees

DELTA AA NW USAIR--they do NOT

Ask your manmt team why they don't use theirs?????

Buy American products!!!!!

 

[Master Shake]

Don't forget folks...
all this $$$ and both CAL & XJT still have "free" meal services on most flights. It's the little things like that people remember when buying their next ticket.

 

[hotwing]

HoustonChronicle.com -- http://www.HoustonChronicle.com | Section: Business

Oct. 19, 2005, 9:33PM
Continental shares slip despite profit

Announcement of stock sale may have contributed

By BILL HENSEL JR.
Copyright 2005 Houston Chronicle
Continental Airlines shares fell Wednesday, even after the carrier reported a third-quarter profit at a time when high fuel prices are hammering the industry.
The market's reaction may been caused by Continental's announcement late Tuesday of a public sale of 18 million shares of Class B common stock. The carrier also reported its earnings after the stock market closed Tuesday.
With more Continental shares in the marketplace, current investors may fear that the value of their shares could be diluted. Lehman Bros. said in a report that it was "a bit surprised" by the plan, which is expected to raise $200 million.
"While additional liquidity offers fundamental benefits, we believe it also dilutes value to current equity holders," Lehman Bros. analyst Gary Chase said.
The money that's raised will be used for general purposes at the airline, a Continental spokesman said.
Shares of Continental closed down 22 cents at $11.67 Wednesday. The stock had traded lower earlier in the day.
Standard & Poor's, however, had a positive take on the developments at the airline.
Analyst Philip Baggaley said the combination of a better-than-expected operating performance coupled with added cash from the stock offering should ease concerns about Continental's upcoming debt obligations.
Continental has $349 million in debt maturities in this year's fourth quarter and an additional $525 million in 2006, the rating agency said.
"Still, management acknowledges that the company will face a challenge to meet financial obligations in 2007 and beyond if fuel prices do not decline or revenues improve further," Baggaley said.
Continental has $937 million in debt maturities in 2007, he said.
Baggaley noted that Continental's $61 million net profit for the third quarter was achieved despite higher fuel expenses.
Loss still to come

The airline said although revenue trends have been improving, it's still expecting "a significant loss" in the fourth quarter and for all of 2005. The airline lost money in the first quarter but posted a profit for the second quarter.
American Airlines' parent company Wednesday reported a net loss of $153 million for the third quarter, or 93 cents per share. American would have recorded a net loss of $95 million, or 58 cents per share, without several special charges.
"The result is mildly disappointing in the context of the company's second-quarter profit and a profit reported today by competitor Continental Airlines," Standard & Poor's said in a separate report on American.
Two other big airlines, Northwest and Delta, filed for bankruptcy protection during the third quarter.
Expense of fuel

The industry has been hurt this year by high fuel prices, with Continental reiterating Wednesday that fuel has become its single largest expense.
Continental said it spent $684 million on fuel for the third quarter, up more than 65 percent compared to the same period last year.
Officials at Continental said during an earnings conference call Wednesday they believe the company has enough cash and access to cash to fund its budget and other financial obligations through 2006. They said they will continue to look for ways to cut costs and increase revenue.
Continental Chairman and Chief Executive Officer Larry Kellner said wage and benefit cuts by employees were a big factor in Continental making a profit.
The carrier remains in talks with its flight attendants, however, since they rejected proposed cuts in April. Continental still needs those cuts, Kellner said.
"I had hoped it wouldn't take this long," Kellner said. He added that he wants to reach an agreement that's fair to everyone involved.
[email protected]

 

[Captain X]

Just imagine how much they would’ve made if Mesa where doing X Jets flying for half the price.

Um, probably not as good as you believe, since XJT provides more for the money to begin with and their "adjusted" operating cost per seat mile is much closer to the other airline you mentioned than you think.