Source: Reuters Author: Deepa Seetharaman 09/17/2009
Subject Concerned: Airlines Cargo Aviation Fuel
Continental Airlines expects fuller planes in the third quarter and has seen slower declines in premium bookings in the past three months, the company said in a filing on Sep. 17.
The world's fifth largest airline said it expects load factors, a measure of how full a plane is, to be 3 points higher in the third quarter than in the year-ago period.
The Houston-based carrier plans to shrink mainline capacity by 4.2 percent in the third quarter and 5.1 percent in 2009.
Revenue from premium travelers picked up slightly over the summer, the carrier said.
In August, high-yield revenue on mainline and regional flights was off 28 percent, better than the 31 percent decline seen in July and the 35 percent drop in June.
Continental expects to pay US$1.99 per gallon for fuel in the third quarter.
Costs per available seat mile for the carrier's mainline operators would range from 10.36 cents to 10.41 cents in the third quarter, and 10.66 cents to 10.71 cents for the full year, it estimated.
Continental expects to end the third quarter with cash, cash equivalents and short-term investments of US$2.5 billion to US$2.6 billion.
Cargo, mail and other revenue is expected to total between US$360 million and US$370 million in the third quarter.
Continental shares closed 30 cents lower at US$16.32 on the New York Stock Exchange.
Continental is the third carrier this week to say business is picking up after Delta Air Lines and UAL Corp's United Airlines.
On Sep. 17, the International Air Transport Association (IATA) noted that travel demand, especially for premium seats, was beginning to rebound.