Continental Airlines has reported second quarter profits of $198 million – the highest in five years.
Providing further evidence that the US airline industry is set for recovery, net income excluding special charges was $208 million.
Operating income in the second quarter of 2006 was $244 million, more than double the second quarter of 2005.
This was in spite of fuel price increases costing over $200 million and a $60 million accrual for employee profit sharing.
“Our plan is working and as a result, everyone wins,” said Larry Kellner, chairman and chief executive officer.
The carrier anticipates growing its mainline capacity approximately 5% and its consolidated capacity between 3% and 4% in 2007.
“After five years of challenges and hard work, it’s great to see a pay-off for everyone’s efforts,” said Jeff Misner, executive vice president and chief financial officer. “But, even with all the progress made, we must continue our focus on eliminating unnecessary costs.”
Earlier this week, American Airlines and Southwest Airlines also reported strong second quarter profits. See earlier story.
By Bev Fearis
