With all the work CAL has done making their fleet efficient, this should help them turn a profit some time this year
CHICAGO, June 5 (Reuters) - Continental Airlines (CAL.N: Quote, Profile, Research) said on Monday it expects its planes to be fuller in the second quarter, compared with a year ago, and said a quarter of its fuel requirements for the period were hedged at prices below current market rates.
For the second quarter, Continental said it expects its mainline load factor -- a measurement of how many seats are bought on its flights -- to increase 2.5 to 3.5 percentage points over the year earlier quarter.
The airline also said it has hedged about 25 percent of its expected fuel requirements for the period, using crude oil swaps, at an average price of $66.69 per barrel. U.S. crude oil futures were trading at $72.95 a barrel on Monday.
Continental, the No. 4 U.S. airline by revenue, said it sees its bookings for the next six weeks "slightly better than last year."
Major airlines throughout the industry are predicting strong summer bookings, record load factors and higher fares.
As a result, some analysts are forecasting revenue improvements for the industry, which lost $34.9 billion between 2001 and 2005. Airlines have been battered by soaring fuel costs and low-fare competitors that force some carriers to sell seats below cost.
For the third quarter, Continental said it has hedged about 17 percent of its expected fuel requirements, using crude oil swaps, at an average price of $72.96 per barrel.
The airline said it expects to end the second quarter with an unrestricted cash and short-term investments balance of between $2.4 and $2.5 billion.
Shares of Continental were down 50 cents at $24.73 on the New York Stock Exchange in late morning trade.
CHICAGO, June 5 (Reuters) - Continental Airlines (CAL.N: Quote, Profile, Research) said on Monday it expects its planes to be fuller in the second quarter, compared with a year ago, and said a quarter of its fuel requirements for the period were hedged at prices below current market rates.
For the second quarter, Continental said it expects its mainline load factor -- a measurement of how many seats are bought on its flights -- to increase 2.5 to 3.5 percentage points over the year earlier quarter.
The airline also said it has hedged about 25 percent of its expected fuel requirements for the period, using crude oil swaps, at an average price of $66.69 per barrel. U.S. crude oil futures were trading at $72.95 a barrel on Monday.
Continental, the No. 4 U.S. airline by revenue, said it sees its bookings for the next six weeks "slightly better than last year."
Major airlines throughout the industry are predicting strong summer bookings, record load factors and higher fares.
As a result, some analysts are forecasting revenue improvements for the industry, which lost $34.9 billion between 2001 and 2005. Airlines have been battered by soaring fuel costs and low-fare competitors that force some carriers to sell seats below cost.
For the third quarter, Continental said it has hedged about 17 percent of its expected fuel requirements, using crude oil swaps, at an average price of $72.96 per barrel.
The airline said it expects to end the second quarter with an unrestricted cash and short-term investments balance of between $2.4 and $2.5 billion.
Shares of Continental were down 50 cents at $24.73 on the New York Stock Exchange in late morning trade.
