Continental Airlines reported a second quarter net loss of $17 million ($0.26 loss per share), which included a special charge of $19 million after taxes…
Continental Airlines reported a second quarter net loss of $17 million ($0.26 loss per share), which included a special charge of $19 million after taxes($30 million before taxes) due to the retirement of leased MD-80 aircraft.
Excluding the aircraft retirement charge,Continental achieved a net profit of $2 million ($0.03 earnings per share) for the quarter, which compares favorably to the First Call mean estimate of $0.09 loss per share.
A weak domestic fare environment caused in large part by the growth of low cost competitors and record high fuel prices continue to hurt the company`s financial performance. The price of West Texas Intermediate crude oil hit an all-time high of $42.33 per barrel on June 1, 2004, and continues at over $40 per barrel.
These results remain disappointing in a year where we hoped to break even, said Gordon Bethune, Continental`s chairman and chief executive officer. Our efforts to return to profitability were overwhelmed by the continuing soft domestic yields, a record high cost of fuel, and a $265 million burden of taxes and fees paid to the government over the last three months.
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