This story is inconclusive, but is the kind of stuff I would look at.
UPDATE 2-Continental loss narrows, stiff competition looms
Tue Jan 17, 2006 07:15 AM ET
NEW YORK, Jan 17 (Reuters) - Continental Airlines Inc. (CAL.N:
Quote,
Profile,
Research) on Tuesday reported a smaller quarterly loss as higher revenue and cost cuts outweighed burgeoning fuel costs, but warned that strong competition was complicating its recovery.
The No. 5 U.S. carrier said its fourth-quarter net loss narrowed to $43 million, or 53 cents a share, from $208 million, or $3.16 a share, a year earlier.
Stripping out a one-time gain of $106 million from the sale of stock in Panamanian airline Copa and special charges of $21 million, the quarterly loss was $128 million, or $1.58 per share, better than Wall Street analysts' forecast of a loss of $1.85 a share.
Like other major U.S. airlines, Continental has been struggling with surging fuel costs, which increased 58 percent in the three-month period.
In March, most of its unions agreed to accept givebacks, worth a combined $418 million annually, in a step the Houston-based airline said was key to its survival. Wages, salaries and related expenses fell 11 percent in the quarter.
Its flight attendants, who had resisted the airline's calls to cut their paychecks, reached a deal with Continental in December and are slated to vote on it starting on Wednesday.
Revenue in the quarter rose 16.7 percent to $2.8 billion, helped by rising fares and growth in higher margin international routes, with new flights to destinations from Delhi to Buenos Aires.
But the Houston-based carrier warned that the horizon remains cloudy, especially due to stiff competition both from discount and traditional airlines.
"The price of oil still hovers at record high prices, JetBlue , has invaded our Newark hub, Delta is using its bankruptcy advantage to expand into our profitable international markets and United Airlines , flush with $3 billion in exit financing and greatly reduced costs, is coming out of bankruptcy," Continental Chief Executive Larry Kellner said in a statement.
Continental ended the quarter with about $1.96 billion in cash and short-term investments, with its war chest bolstered by a public offering of its stock and the sale of part of its stake in Copa.