weasil
23rd July 2006, 04:45
Friday July 21, 2006
Continental Airlines concluded its best quarter since 2001 with a net profit of $198 million, nearly double the $100 million earned in the second quarter of 2005."After five years of challenges and hard work, it's great to see a payoff for everyone's efforts. But, even with the progress made, we must continue our focus on eliminating unnecessary costs," Executive VP and CFO Jeff Misner said.
While expenses did rise 19.2% to $3.26 billion, Continental's ability to attract more passengers and implement "several fare increases" boosted turnover 22.8% to $3.51 billion, more than doubling operating income to $244 million from $119 million in the year-ago quarter. It recorded $10 million in special charges, comprising a $14 million settlement charge related to lump-sum payments to retiring pilots and a $4 million reduction of an older charge related to the grounding of leased MD-80s.
Consolidated traffic during the quarter grew 15.2% to 23.37 billion RPMs. Capacity rose 10.9% to 28.26 billion ASMs and load factor climbed 3.1 points to 82.7%, a record for the period. Passenger RASM went up 11% to 11.42 cents and yield increased 6.9% to 13.81 cents. On mainline operations, unit costs rose 8.1% to 10.72 cents but went up just 1.3% to 10.05 cents holding fuel rate constant. CO paid $2.11 per gal. of fuel, a 26.4% increase.
The airline said it is in "advanced discussions" on a capacity purchase agreement for 40-50 regional jets to partially replace the 69 retained by ExpressJet (ATWOnline, May 8). With the addition of two 777s early next year, it anticipates growing mainline capacity 5% and consolidated capacity 3%-4% in 2007.
For the first six months of 2006, net profit was $132 million compared to an $86 million loss in the year-ago period. Revenues rose 20.3% to $6.45 billion, expenses increased 14.4% to $6.2 billion and operating result improved from a $54 million loss to a $255 million profit.
by Brian Straus
Continental Airlines concluded its best quarter since 2001 with a net profit of $198 million, nearly double the $100 million earned in the second quarter of 2005."After five years of challenges and hard work, it's great to see a payoff for everyone's efforts. But, even with the progress made, we must continue our focus on eliminating unnecessary costs," Executive VP and CFO Jeff Misner said.
While expenses did rise 19.2% to $3.26 billion, Continental's ability to attract more passengers and implement "several fare increases" boosted turnover 22.8% to $3.51 billion, more than doubling operating income to $244 million from $119 million in the year-ago quarter. It recorded $10 million in special charges, comprising a $14 million settlement charge related to lump-sum payments to retiring pilots and a $4 million reduction of an older charge related to the grounding of leased MD-80s.
Consolidated traffic during the quarter grew 15.2% to 23.37 billion RPMs. Capacity rose 10.9% to 28.26 billion ASMs and load factor climbed 3.1 points to 82.7%, a record for the period. Passenger RASM went up 11% to 11.42 cents and yield increased 6.9% to 13.81 cents. On mainline operations, unit costs rose 8.1% to 10.72 cents but went up just 1.3% to 10.05 cents holding fuel rate constant. CO paid $2.11 per gal. of fuel, a 26.4% increase.
The airline said it is in "advanced discussions" on a capacity purchase agreement for 40-50 regional jets to partially replace the 69 retained by ExpressJet (ATWOnline, May 8). With the addition of two 777s early next year, it anticipates growing mainline capacity 5% and consolidated capacity 3%-4% in 2007.
For the first six months of 2006, net profit was $132 million compared to an $86 million loss in the year-ago period. Revenues rose 20.3% to $6.45 billion, expenses increased 14.4% to $6.2 billion and operating result improved from a $54 million loss to a $255 million profit.
by Brian Straus