Continental Air reports January loss
By Matt Andrejczak, MarketWatch
Last Update: 9:35 PM ET Feb. 11, 2005
SAN FRANCISCO (MarketWatch) -- Losses are mounting at Continental Airlines.
The Houston-based airline said in a regulatory filing late Friday that its January loss amounted to about $47 million -- more than $1.5 million per day.
The losses were softened by a gain on the contribution of ExpressJet Holdings shares to its defined pension plan. ExpressJet is the airline's main regional carrier.
Backing out that gain, Continental said it lost more than $3 million a day. The winter months are typically the leanest revenuewise for airlines.
Continental, which ended 2004 with a $363 million loss, has warned it expects to incur a significant loss this year.
In the last quarter, its profit margin was squeezed by eroding fare prices on U.S. and Caribbean flights in addition to high fuel costs.
By the end of this month, the airline aims to slash $500 million in labor costs. To date, it has achieved $169 million of that target.
Continental has stressed that the cost reductions are needed to avoid liquidity problems.
Shares of Continental (CAL: news, chart, profile) closed Friday at $10.51, up 16 cents.
Matt Andrejczak is a reporter for MarketWatch in San Francisco.