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Reuters
Continental Airlines boosts fares over fuel costs
Tuesday May 18, 8:39 pm ET
NEW YORK, May 18 (Reuters) - Continental Airlines (NYSE:CAL - News)
raised fares worldwide on Tuesday, becoming the latest carrier
to increase prices to counter higher fuel costs.
Houston-based Continental also said that if fuel costs keep
rising, it may have to consider additional furloughs, wage and
benefit concessions and reduced pension funding for employees.
The fare increase is $10 each way for flights up to 1,000
miles (1,600 kms), and $20 each way for flights over 1,000
miles, the airline said, adding that the price rise will only
offset 15-20 percent of the impact of higher fuel prices.
"We worked hard to generate $900 million of operating
income improvements by removing non-value added expense and
generating additional revenue over the past two years," said
Gordon Bethune, chairman and chief executive officer.
"We originally expected that this would let us break even
in 2004. While we may be faring better than our financially
weaker competitors, none of us can afford to operate with these
high fuel costs.
"If we are not successful in passing along these exorbitant
fuel costs through higher fares, we will ultimately be forced
to seek significant wage and benefit concessions and furloughs
of our dedicated and hard working co-workers in order to
survive," Bethune said.
Continental Airlines boosts fares over fuel costs
Tuesday May 18, 8:39 pm ET
NEW YORK, May 18 (Reuters) - Continental Airlines (NYSE:CAL - News)
raised fares worldwide on Tuesday, becoming the latest carrier
to increase prices to counter higher fuel costs.
Houston-based Continental also said that if fuel costs keep
rising, it may have to consider additional furloughs, wage and
benefit concessions and reduced pension funding for employees.
The fare increase is $10 each way for flights up to 1,000
miles (1,600 kms), and $20 each way for flights over 1,000
miles, the airline said, adding that the price rise will only
offset 15-20 percent of the impact of higher fuel prices.
"We worked hard to generate $900 million of operating
income improvements by removing non-value added expense and
generating additional revenue over the past two years," said
Gordon Bethune, chairman and chief executive officer.
"We originally expected that this would let us break even
in 2004. While we may be faring better than our financially
weaker competitors, none of us can afford to operate with these
high fuel costs.
"If we are not successful in passing along these exorbitant
fuel costs through higher fares, we will ultimately be forced
to seek significant wage and benefit concessions and furloughs
of our dedicated and hard working co-workers in order to
survive," Bethune said.
