Continental posts second consecutive quarterly profit
Houston-based Continental Airlines posted a third quarter net income of $61 million, its second consecutive quarterly profit, thanks to “significant revenue improvements and savings from pay and benefit reductions.”
The third quarter net income compares to a net deficit of $18 million in the third quarter of 2004.
The airline said its fuel costs and related taxes jumped 65.2 percent to $684 million from $414 in the same quarter last year. Continental estimated that Hurricanes Katrina and Rita, which forced a 36-hour shutdown of operations at its largest hub, Houston’s Bush Intercontinental Airport, cost the airline an estimated $25 million in the third quarter.
Continental’s operating income soared 395.5 percent to $109 million in the third quarter, from $22 million in the comparable year earlier period. Revenue was up 15.3 percent to $3 billion from $2.6 billion. Revenue from cargo, mail and other operations was also up 15.3 percent to $241 million from $209 million. Cargo ton-miles flown, a measure that reflects volume and distance traveled, dropped 1.6 percent to 246 million.
“We’re making good progress to contain controllable costs,” said Jeff Misner, executive vice president and chief financial officer. “Although fuel costs continue to plague us, we ended the quarter with a strong cash balance.”
Continental ended the third quarter with $1.92 billion in unrestricted cash and short-term investments. Although revenue trends have been improving, the company still expects to incur a significant loss in the fourth quarter and for the full year.
For the year-to-date, Continental reported a net loss of $25 million, compared to a deficit of $201 million after the first nine months of 2004. Continental posted an operating income of $55 million, compared to an operating loss of $75 million in the same period last year. Revenues improved 12.1 percent in the January-September period to $8.36 billion from $7.46 billion.
Continental posts second consecutive quarterly profit
