Continental Airlines Flabbergast Experts Superb Third-Quarter Numbers

Despite record high cost of jet fuel and hurricanes, Continental Airlines managed net income of $61 million or $0.80 diluted earnings per share, including a $3 million net special charge in the third quarter of the ongoing year.

Excluding the net special charge, Continental recorded net income of $64 million ($0.83 diluted earnings per share) which compares favorably to the First Call mean estimate of $0.27 earnings per share.

As per the financial results, operating income of $109 million for the third quarter 2005 was an $87 million improvement over the third quarter 2004, primarily due to significant revenue improvements and savings from pay and benefit reductions.

Continental said that the record high cost of jet fuel continues to adversely affect the company´s financial results. Also, hurricanes Katrina and Rita adversely impacted Continental´s operations.

The airline said that improvements in revenue were largely the result of continued expansion into international markets and higher fares, as the company tries to recoup increased jet fuel costs.

Consolidated passenger revenue per available seat mile (RASM) for the quarter increased 6.0 percent year-over-year.