yul332LX
Posts: 798
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Continental Reports $2m Profit After Charge

Wed Jul 21, 2004 4:38 am

Here's a report:

Continental Airlines became the first of the US legacy airlines to nudge profitability when it reported a net profit from operations of $2m after excluding a one-off $19m charge for the retirement of old aircraft, ahead of analysts' expectations.

Gordon Bethune, chief executive, called the results disappointing and blamed the continued high cost of fuel and price competition, which led yields on its mainline routes to fall 1.6 per cent in the quarter
...
The high taxes and fuel pushed up Continental's costs per available seat mile by 8.7 per cent to 9.42 cents from 8.67 cents. Delta, however, reported a higher cost structure. Its costs rose 9.7 per cent to 10.88 per available seat mile.


Source: http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1087373844315&p=1012571727108
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drerx7
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RE: Continental Reports $2m Profit After Charge

Wed Jul 21, 2004 4:53 am

I believe the $2 million profit is before the charge. So for this quarter there was a $17 million dollar loss.
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highliner2
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RE: Continental Reports $2m Profit After Charge

Wed Jul 21, 2004 8:15 am

Yeah, I listened in on the conference call this morning, the loss was because of the costs associated with returning the MD80s. They still sounded awfully disappointed with the results, however, I'm still predicting that they may be one of, if not THE best quarterly results for any of legacies. AA's come out tomorrow I believe, be interesting to see how they did. I've heard they may actually have a shot at a profit this quarter but that's just rumor so who knows. For those who have never listened to a earnings conference call I strongly recommend it, very insightful, especially when you get to hear Bethune use one of his metaphors. I believe my favorite one today was "if your gonna cut the tail off a dog, do it only once" referring to the labor negotiations I believe. He also really opened my eyes to how high the taxation of the industry is, even as the gov't is giving these 'bailouts', sounds like they're taking way more than they're giving, really opened my eyes. Go CO!
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whitehatter
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RE: Continental Reports $2m Profit After Charge

Wed Jul 21, 2004 8:22 am

In the current climate, with fuel and insurance at all-time highs, it isn't such a bad performance at all. Insurance is a big item at the moment, still at a considerable premium over pre-911 days.

At least CO isn't deeply in red ink. The summer should reverse that.
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A330323X
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RE: Continental Reports $2m Profit After Charge

Wed Jul 21, 2004 8:25 am

I'm still predicting that they may be one of, if not THE best quarterly results for any of legacies. AA's come out tomorrow I believe, be interesting to see how they did. I've heard they may actually have a shot at a profit this quarter but that's just rumor so who knows.

Not many people agree with me, but I think US is likely to post a small profit for the 2nd quarter.
I'm the expert on here on two things, neither of which I care about much anymore.
 
MAH4546
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RE: Continental Reports $2m Profit After Charge

Wed Jul 21, 2004 8:50 am

I'm still predicting that they may be one of, if not THE best quarterly results for any of legacies. AA's come out tomorrow I believe, be interesting to see how they did. I've heard they may actually have a shot at a profit this quarter but that's just rumor so who knows.

Some are saying AA will show a very small profit, though the general consensus is, profit or not, their results will show signs of their financial state improving greatly.
a.