Continental Reports $213 Million Quarterly Loss, Cuts 1,700 Jobs

Continental Airlines, which reported a second-quarter 2009 net loss of $213 million, is eliminating approximately 1,700 positions across the company, including management and clerical positions.

This is in addition to the previously announced elimination of 500 reservation agent positions and special company-offered leaves of absence extended to 700 flight attendants. Continental is offering employees voluntary programs to minimize the number of involuntary furloughs and reductions in force.

Continental is also raising by $5 the fee for checked baggage for passengers who do not prepay the fee online, effective immediately, for travel starting Aug. 19, 2009. The checked baggage fee is currently $15 for the first bag and $25 for the second. Continental also is hiking its telephone reservation booking service fee by $5 to $20.

The airline said that it has other revenue initiatives that will be announced when implemented. Total revenue for the quarter was $3.1 billion, a decrease of 22.7 percent compared to the same period in 2008.

Passenger revenue for the quarter fell 24.2 percent ($883 million) compared to the same period last year due to lower fares and passenger traffic declines. Consolidated revenue passenger miles (RPMs) for the second quarter decreased 6.4 percent year-over-year on a capacity decrease of 7.8 percent, resulting in a second-quarter consolidated load factor of 82.7 percent, 1.3 points higher than the second quarter of 2008.

Consolidated yield for the second quarter decreased 19.1 percent year-over-year. Consolidated passenger revenue per available seat mile (RASM) for the second quarter decreased 17.7 percent year-over-year.

Mainline RPMs in the second quarter of 2009 decreased 5.7 percent compared to the second quarter of 2008, on a capacity decrease of 7.3 percent year-over-year. Mainline load factor was 83.2 percent, up 1.5 points year-over-year for the second quarter.

Continental’s mainline yield decreased 18.3 percent in the second quarter over the same period in 2008. As a result, second quarter 2009 mainline RASM was down 16.9 percent compared to the second quarter of 2008.