"Continental Airlines warned Tuesday its plans to break even or be profitable this year are "at great risk" due to high jet fuel and oil prices. A monumental problem out there for all the carriers," Continental's chief financial officer, Jeff Misner, said at an airline conference in New York. Shares of Continental (CAL: down $0.72 to $14.75, Research, Estimates), the nation's No. 5 airline, tumbled nearly 5 percent in active New York Stock Exchange trading.
Late on Monday, Continental reported that system-wide unit revenue, measuring how much money is taken in per available seat mile, fell an estimated 2.5 to 3.5 percent in February. UBS Warburg analyst Sam Buttrick called the results "disappointing" and well below his expectation of 2 percent growth. He widened his first-quarter estimated loss for Houston-based Continental to $1.20 per share from a previously estimated loss of 85 cents a share. "
CO will continue to lose market share to the likes of Jetblue and Song out of New York. JFK is a more important international port and served by many more international airlines than EWR and CO.
757 Transatlantic Service
CO has dropped the CLE-LGW flight, if there was really a fantastic demand for all the routes you listed above, other airlines would follow.
Domestic widebody service
The likes of DL, AA, and UA use widebody aircraft for domestic routes in part because of the large demand between their hubs, a little more than EWR-CLE or IAH-CLE. I realize they also ferry the aircraft for maintenance and rotation purposes.
Unfortunately CO is heading like all the major airlines into BK. How many times has CO emerged from BK? Twice? I do not think DL or AA have previously filed for BK and nor had UA until this past summer. The high price of unions is what will drive the airlines out of business and as USAirways has learned, it is hard to have the lowest operating costs when you have a stong union and higher east-cost operating expenses. CO needs to maintain a hub on the west coast, that is where the population is shifting!!!!
If CO operated a more fuel efficient fleet such as Airbus versus the 737 and MD-80, the higher cost of fuel would not be such an issue. CO still operate 767-200's (most airlines have retired the 200-series) and CO' were one of the last airlines to retire the DC-10. How old are CO's MD-80? No wonder they code-share with NWA.
[Edited 2004-03-03 06:02:31]
[Edited 2004-03-03 06:04:36]
HOLD THE PRESSES!!!
Alpha1 how many miles or trips do you fly per year? it seems to me as though you never leave the computer. People talk about great CO service and friendly desk agents. I guess CO must put on an extra smile when they hand out peanuts and coke. I can not remember the last time I talked to a gate agent? You print your boarding card on-line or from a Kiosk and board the plane when your row is called.
The majority of the people on this website, are frequent flyers who enjoy different aircraft and their configurations, we are not claiming to be financial wizards in the airline industry unlike you who claim that CO is in far better financial standing than the other airlines and will not file for BK. "CO will be the last major to do so, if they ever do. Operationally, they're heads and shoulders ahead of UA History has a way of repeating itself!!! The financial side of the business is left to the airlines, as a FF we chose the flights, routes, and aircraft that make the most sense to us.
P.S. You must know the financial secret as to why CO was the only airline to continue to buy the 757. You would think that such a strong and important airline such as CO would not allow Boeing to halt the production of such an aircraft?
[Edited 2004-03-04 05:15:11]