Continental Airlines Announces Third Quarter Profit
 

CONTINENTAL AIRLINES ANNOUNCES THIRD QUARTER PROFIT


Achieves profit despite record high jet fuel prices and impact of Hurricanes Katrina and Rita



HOUSTON, Oct. 18, 2005 -- Continental Airlines (NYSE: CAL) today reported third quarter 2005 net income of $61 million or $0.80 diluted earnings per share, including a $3 million net special charge. 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.

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.

The record high cost of jet fuel continues to adversely affect the company’s financial results. In the third quarter, Continental’s mainline fuel expense totaled $684 million, up 65.2 percent over the same period last year. Fuel expense is now Continental’s single largest expense item. In the week following Hurricane Rita, the price per barrel of Gulf Coast jet fuel increased nearly $32, closing at a then-record $124.36 per barrel on Sept. 28.

Hurricanes Katrina and Rita adversely impacted Continental’s operations. Rita forced the carrier to suspend service for 36 hours at its largest hub, Houston’s Bush Intercontinental Airport, costing the company an estimated $25 million in the third quarter.

“My co-workers did an incredible job to overcome tremendous challenges posed by Hurricanes Katrina and Rita,” said Larry Kellner, chairman and chief executive officer. “Continental continues to grow and outdistance its competitors because of my co-workers’ economic sacrifices, teamwork and tireless dedication.”

Good job, CAL! :)

Now if they could only manage to make a profit without tapping further into employee pay and benefits. :rolleyes: