Continental loses US$282 million in 2009 on low yield

CONTINENTAL Airlines's full-year net loss amounted to US$282 million - excluding $145 million of separately announced special charges, and a $158 million non-cash income tax benefit - the airline recorded a net loss of $295 million for the year.

The carrier's fourth quarter net income of $4 million drawn on a revenue of $3.2 billion, a decline of eight per cent year on year. Passenger revenue was down by 9.5 per cent ($296 million) year on year. Consolidated revenue passenger miles (RPMs) were up 3.5 per cent on a capacity (available seat mile, ASM) a decrease of 0.6 per cent year-over-year.

Cargo revenue in the fourth quarter of 2009 decreased 6.1 per cent ($7 million) compared to the same period in 2008, mostly because of lower year-on-year fuel surcharges.

Other revenue during the fourth quarter of 2009 was $14 million higher year on year help by to higher baggage fees.

To facilitate easy connections between Continental's flights and those of other Star Alliance airlines, Continental successfully relocated its operations at several key airports, including Chicago, Frankfurt, Narita, Honolulu and Beijing.

Fuel expense for the quarter declined $388 million (32.4 per cent) compared to the same period in 2008 as a result of a decrease in fuel prices and lower volumes.

Continental continued to improve fuel efficiency during the quarter by retiring older aircraft and adding modern, fuel-efficient aircraft to its fleet. During the quarter, the company took delivery of one new Boeing 737-900ER and three leased Boeing 757-300 aircraft.

Continental is scheduled to take delivery of 12 Boeing 737 aircraft and two Boeing 777 aircraft in 2010, and expects to take delivery of one leased Boeing 757-300 aircraft in the first quarter of 2010. By the end of the first quarter of 2010, the company expects to remove from service its last three Boeing 737-300 aircraft.

Said Continental chairman, president and CEO Jeff Smisek: "While we are seeing some business traffic increase we likely have a long and slow road to recovery. We remain focused on achieving and maintaining profitability."

(Source: www.schednet.com)