Continental Reports $146 Million First Quarter Loss

Continental Airlines reported a first quarter 2010 net loss of $146 million, as increased fuel costs offset increases in revenue. In part due to significantly higher jet fuel cost, Continental’s mainline cost per available seat mile (CASM) increased 7.4 percent in the first quarter compared to the same period last year.

Total revenue for the first quarter of 2010 was $3.2 billion, an increase of 7.0 percent compared to the same period in 2009. Passenger revenue for the first quarter rose 7.1 percent ($186 million) compared to the same period in 2009, due to increased traffic and higher average fares.

Consolidated revenue passenger miles (RPMs) for the first quarter of 2010 increased 5.7 percent while capacity (available seat miles, ASMs) remained flat year-over-year, producing a record first quarter load factor of 79.5 percent. Mainline load factor of 80.1 percent was also a first quarter record, up 4.3 points year-over-year.

During the quarter, Continental began offering customers the option of purchasing premium seat assignments for economy-class seats with extra legroom. It is continuing with its program of fleet changes aimed at improving connectivity. It took delivery of one Boeing 757-300 aircraft, which will be placed in service in April 2010. In addition, Continental removed from service its three remaining Boeing 737-300 aircraft.

Continental continued to install winglets on its fleet of Boeing 757-300 aircraft. All of the company’s 737-500s, 700s, 800s, 900s and 757-200s have winglets. The company expects to complete installation of winglets on its entire narrow-body fleet by the end of the second quarter of 2010.