Continental loses US$282 million in 2009 on low yield

CONTINENTAL Airlines`s full-year net loss amounted to US$282 million - excluding $145 million of separately announced special charges, and a $158 million non-cash income tax benefit - the airline recorded a net loss of $295 million for the year.
The carrier`s fourth quarter net income of $4 million drawn on a revenue of $3.2 billion, a decline of eight per cent year on year. Passenger revenue was down by 9.5 per cent ($296 million) year on year. Consolidated revenue passenger miles (RPMs) were up 3.5 per cent on a capacity (available seat mile, ASM) a decrease of 0.6 per cent year-over-year.
Cargo revenue in the fourth quarter of 2009 decreased 6.1 per cent ($7 million) compared to the same period in 2008, mostly because of lower year-on-year fuel surcharges.
Other revenue during the fourth quarter of 2009 was $14 million higher year on year help by to higher baggage fees.
To facilitate easy connections between Continental`s flights and those of other Star Alliance airlines, Continental successfully relocated its operations at several key airports, including Chicago, Frankfurt, Narita, Honolulu and Beijing.
Fuel expense for the quarter declined $388 million (32.4 per cent) compared to the same period in 2008 as a result of a decrease in fuel prices and lower volumes.
Continental continued to improve fuel efficiency during the quarter by retiring older aircraft and adding modern, fuel-efficient aircraft to its fleet. During the quarter, the company took delivery of one new Boeing 737-900ER and three leased Boeing 757-300 aircraft.
Continental is scheduled to take delivery of 12 Boeing 737 aircraft and two Boeing 777 aircraft in 2010, and expects to take delivery of one leased Boeing 757-300 aircraft in the first quarter of 2010. By the end of the first quarter of 2010, the company expects to remove from service its last three Boeing 737-300 aircraft.
Said Continental chairman, president and CEO Jeff Smisek: "While we are seeing some business traffic increase we likely have a long and slow road to recovery. We remain focused on achieving and maintaining profitability."