With UAL bankrupt and constant questioning about their future plus the averted AA bankruptcy and also US Airways emerging from chapter 11, not much has been said about Continental, so how are they doing? We have not heard much of them in a while. Obviously they have been hit like all other airlines, but are they doing good or bad it retrospect to other airlines?
How is the situation at Delta and Northwest also?
By: EGNM - 30th April 2003 at 22:42
as said before, perhaps they’ve learn from previous mistakes at a time of a downturn in the market – 1991 Gulf War springs to mind…
By: Saab 2000 - 30th April 2003 at 20:42
Thank you. I appreciate your replies.
Generally I knew Continental were losing money (who isn’t :rolleyes: ), but weighed up against AA and UAL it is in a much better position. It has twice before been through Chapter 11 so it must be in one of the better postions in the US considering it had been through the process of re-structuring before.
How are Delta and Northwest?
By: Cyprioteagle - 29th April 2003 at 20:47
Continental Airlines are also not doing well, however they are in a better position than our friends United Airlines and American Airlines and once the airline industry recovers (if it recovers) we may see Continental Airlines becoming a major key player both globally and in domestic US market as they have better chances in surviving.
Some news that I managed to collect is that on April they reported a quarter 1 loss of US$221 million. The loss was occured because of a 4% increase in operating expenditure to US$2.26 billion. Operating Revenue increased to US$ 2 billion (a 2.5% increase from last year’s Quarter 1 results) because of improved cargo performance as Passenger Revenues remained at the same levels.
As a mean to reduce operating expenditure the airline has announced the closure of 12 ticket offices in New York, Los Angeles, San Fransico, Phoenix and Illinois. Also the airline is assessign a possibility of charging extra US$10 for every reservation or change of reservation made by passengers from the remaining 35 city offices, but charge nothing if passengers are wishing to use their website as a mean to promote transactions through the airlines website.
Finally, the airline also announced the retirement of four executive Vice presidents as part of the strategy to save US$ 500 million per annum. At least they didnt cut jobs at the lower spectrum like most airlines would do. Perhaps this is the reason why Continental Airlines is so popular among employees and gained their respect!!!!
By: EGNM - 29th April 2003 at 20:12
i think continental would be one of the strongest after their previous spell under chapter 11 – i can see where your coming from, we only hear about those in trouble!
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April 29, 2003 at 8:03 pm