Continental Airlines Posts First-Quarter Gains

Continental Airlines posted a higher than expected first-quarter profit helped by fuller planes, higher fares and a slight decline in fuel prices. It was the first time the airline reported a profit in the seasonally weak first quarter since 2001, marking another milestone in the recovery of long-suffering U.S. airlines, which began in earnest last summer.

Aggressive cost cutting and resurgent demand for air travel have helped airlines post profits, in many cases, for the first time in years. AMR, the parent of American Airlines, reported a similar earnings turnaround last week. Continental reported net income of $22 million, compared with a year-earlier net loss of $66 million.

The two major carriers made a profit despite the seasonally sluggish period for air travel, which was complicated by winter storms that caused mass flight cancellations. Continental said severe winter storms cut $10 million off its quarterly revenue, but said overall operating revenue still rose 8 percent to $3.18 billion. Its load factor increased 0.8 points to 78.7 percent.