Continental incurred a net loss of $68 million for the full year 2005, including all 2005 special items. Excluding those special items, Continental recorded a net loss of $205 million for the full year 2005. The 2005 loss was the result of increased competition from low-cost carriers and the inability to recover, through fare increases, the higher cost of fuel.
In 2005, mainline fuel costs were $856 million higher than in 2004!
"We continue to face significant challenges. The price of oil still hovers at record high prices, JetBlue has invaded our Newark hub, Delta is using its bankruptcy advantage to expand into our profitable international markets and United Airlines, flush with $3 billion in exit financing and greatly reduced costs, is coming out of bankruptcy," said Chairman and Chief Executive Officer Larry Kellner.
Kellner also added, "However, thanks to the personal sacrifice of my co-workers who took wage and benefit reductions in 2005, Continental has been able to avoid the path of bankrupt carriers and launch one of the largest international expansion plans in our company's history,"
For the fourth quarter, Continental's mainline load factor was 78.1 percent, a slight increase over the same period in 2004.
Yahoo! News
Continental Airlines expects to report a 'significant' loss in the first quarter amid continued high fuel prices and stiff competition from low cost carriers. However, seat capacity is expected to rise by nearly 10 percent while their load factor is expected to remain flat.
Yahoo! News
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