Americas : Continental slides into the red, defers deliveries

Continental Airlines yesterday reported a third-quarter net loss of US$236 million, reversed from a US$241 million profit a year earlier. The carrier also announced that it has pushed back delivery of 18 aircraft scheduled to arrive over the next two years. CO’s third-quarter revenue increased 8.8 per cent year-over-year to US$4.2 billion while expenses jumped […]


Continental Airlines Hurricane Ike


Continental Airlines yesterday reported a third-quarter net loss of US$236 million, reversed from a US$241 million profit a year earlier. The carrier also announced that it has pushed back delivery of 18 aircraft scheduled to arrive over the next two years.

CO’s third-quarter revenue increased 8.8 per cent year-over-year to US$4.2 billion while expenses jumped 21.7 per cent to US$4.3 billion including a 67.7 per cent leap in fuel costs to US$1.5 billion, producing an operating loss of US$152 million. The Houston-based carrier said last month’s Hurricane Ike adversely affected operating results by US$50 million.

Two 777s will be delivered in 2010 instead of 2009 and 16 737NGs slated for 2009-10 have been deferred to 2011 and beyond with no new schedule set. Continental is scheduled to take delivery of 14 737NGs next year, although the ongoing strike by Boeing machinists could delay this.

The carrier said its fourth-quarter mainline capacity will be down 7.8 per cent year-on-year including an 11 per cent domestic cut. Full-year 2009 mainline capacity is expected to decline another 1-3 per cent compared to this year including a 4-6 per cent domestic contraction.