Continental Airlines Sees Small 3Q Profit

Continental Airlines Inc. forecast a modest third-quarter profit as it and some other airlines reported stronger passenger traffic for September, though the outlook for the industry remains troubled.

Continental said its September traffic rose 9.8 percent to 6.2 billion revenue passenger miles - representing one paying passenger flown one mile - compared with the year-ago period, while revenue per available seat mile rose 8 percent to 9 percent from a year earlier. Because Continental typically is the only major airline to report monthly revenue figures, its performance is watched as a barometer of industry conditions.

The positive results disclosed Monday came despite the effects of hurricanes Katrina and Rita. The storms knocked out key Gulf Coast refineries, sending jet-fuel prices soaring, and disrupted airline traffic. Houston-based Continental said problems related to Hurricane Rita reduced its September operating results by about $25 million.

Some other U.S. airlines reported increased September traffic, although UAL Corp.'s United Airlines, which is trying to emerge from bankruptcy-court protection, said its September traffic fell 1.5 percent to 9.13 billion revenue passenger miles. The decline followed a 4.8 percent drop in available seat miles, a measure of capacity.

The traffic reports, along with a drop in oil prices, sent airline shares higher. Continental's Class B shares rose 57 cents, or 5.8 percent, to close at $10.48 on the New York Stock Exchange composite trading, while shares of American Airlines parent AMR Corp. were up 49 cents, or 4.4 percent, at $11.57. Southwest Airlines shares rose 2 cents to $14.84, while AirTran Holdings Inc. was up 3.3 percent, 43 cents, to $13.40. JetBlue Airways Corp. rose 42 cents, or 2.4 percent, to $18.10 on the Nasdaq Stock Market.

Continental didn't address its results for the year. Previously, the carrier had said it expects to report a significant annual loss because of high fuel prices. AMR said the hurricanes and jet-fuel prices would have a significant negative impact on American's third-quarter results.

As of the end of September, the price of jet fuel had more than doubled since the beginning of 2005.

News stories provided by third parties are not edited by "Site Publication" staff. For suggestions and comments, please click the Contact link at the bottom of this page.