Continental Reports $136 Million First Quarter Loss

Continental Airlines reported a first-quarter net loss of $136 million ($1.10 diluted loss per share). First-quarter results were adversely affected by significant declines in high-yield traffic as many business travelers curtailed travel or purchased lower-yield economy tickets due to the weakened economy.

Fuel expense declined $527 million (41.8 percent) in the first quarter of 2009 compared to the first quarter of 2008. Excluding $4 million of aircraft-related charges, Continental recorded a net loss of $132 million ($1.07 diluted loss per share).

Total revenue for the quarter was $3 billion, a decrease of 17 percent compared to the same period in 2008. Passenger revenue for the quarter fell 18.8 percent ($606 million) compared to the same period last year due to lower fares and passenger traffic declines.

Consolidated average fares dropped 7.4 percent during the quarter compared to first quarter 2008, declining 16.3 percent in March 2009 versus March 2008. Consolidated revenue passenger miles (RPMs) for the first quarter decreased 11.2 percent year-over-year on a capacity decrease of 7.2 percent, resulting in a first quarter consolidated load factor of 75.2 percent, 3.3 points lower than the first quarter of 2008.

Consolidated yield for the first quarter decreased 8.6 percent year-over-year. Consolidated passenger revenue per available seat mile (RASM) for the first quarter decreased 12.5 percent year-over-year. Mainline RPMs in the first quarter of 2009 decreased 11.2 percent compared to the first quarter of 2008, on a capacity decrease of 7.6 percent year-over-year.

Mainline load factor was 75.8 percent, down 3.0 points year-over-year. Continental’s mainline yield decreased 7.6 percent in the first quarter over the same period in 2008. As a result, first quarter 2009 mainline RASM was down 11.2 percent compared to the first quarter of 2008.