Continental posts quarterly, annual net losses
Continental Airlines blamed increased competition from low-cost carriers and higher fuel costs for its fourth quarter and full year net losses.
In the last quarter the Houston-based airline posted a net loss of $43 million, compared to a $208 million net loss in the same quarter 2004.
Continental reported a quarterly operating loss of $94 million, from a loss of $163 million a year ago. Revenue was up 16.7 percent to $2.8 billion from $2.4 billion. Revenue from cargo, mail and other operations rose 11.5 percent to $257 million from $231 million. Cargo ton-miles flown, a measure that reflects volume and distance traveled, dropped 1.1 percent to 275 million.
For the full year, Continental reported a net loss of $68 million, compared to a deficit of $409 million in 2004. Continental’s yearly operating loss was $39 million, compared to an operating loss of $238 million in the previous year. Revenues improved 13.2 percent to $11.2 billion from $9.9 billion. Cargo revenue totaled $973 million, up 13.5 percent from $857 million in 2004. Cargo ton-miles flown was down 0.8 percent to 1.01 billion.
The airline said its fuel costs and related taxes in 2005 jumped 53.9 percent to $2.4 billion from $1.6 billion in 2004.
“We continue to face significant challenges,” said Larry Kellner, Continental’s chairman and chief executive officer. “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 posts quarterly, annual net losses
