Continental Airlines posts loss
Written on July 18, 2008
Continental Airlines Inc (CAL.N: Quote, Profile, Research, Stock Buzz) on Thursday reported a quarterly loss, citing high fuel prices, a weakening economy and a weak U.S. dollar.
Continental’s second-quarter net loss came to $3 million, or 3 cents per share, compared with a year-earlier profit of $228 million, or $2.03 per share.
Excluding special items, the loss was $25 million, or 25 cents per share, beating the estimates of analysts, who on that basis had expected an average quarterly loss of 49 cents a share, according to Reuters Estimates.
In pre-market trade, Continental shares rose to $9.70 from a Wednesday close of $9.19.
“Like American Airlines and Delta, Continental did slightly better than expected mainly due to a bit stronger yield than expected — however yield increase are not enough to offset skyrocketing fuel prices,” said Ray Neidl, airline analyst at Calyon Securities.
“Big capacity cuts in the second half of the year will hopefully lend some strength to ticket prices, even in a slow economy,” added Neidl.
AMR Corp (AMR.N: Quote, Profile, Research, Stock Buzz), parent of American Airlines, and Delta Air Lines Inc (DAL.N: Quote, Profile, Research, Stock Buzz) reported quarterly net losses on Wednesday, blaming depressed results on record fuel prices that have forced widespread industry downsizing.
U.S cash advance usa. airlines are cutting routes, capacity and thousands of jobs to survive unprecedented fuel prices. Oil prices have roughly doubled in the past year.
Filed in: management, marketing.