Continental Airlines reported a second quarter 2008 net loss of $3 million. Excluding $22 million of previously announced net after tax special items, Continental recorded a net loss of $25 million.
In response to these challenges, Continental implemented a number of initiatives in the second quarter of 2008 to maintain its competitive position in the industry and bolster its cash balance including:
— Announcing capacity reductions beginning in September 2008,
— accelerating the retirement of 67 Boeing 737-300 and 737-500 aircraft, removing a majority of the least fuel efficient aircraft form its mainline fleet by the end of 2009, driving the difficult decision to eliminate approximately 3,000 positions across all work groups
— Entering into a new seven-year capacity purchase agreement with ExpressJet Airlines, Inc. to provide regional jet service at lower rates, resulting in approximately $50 million of annual savings
— Raising approximately $900 million through a variety of initiatives including an amended credit card marketing agreement, issuance of common stock, sale of Continental’s remaining equity interest in Copa Holdings, S.A. (Copa) and several secured borrowings
— Entering into framework agreements for a planned transition to the Star Alliance, linking worldwide networks and services of alliance members including United, Lufthansa, Air Canada, Singapore, ANA and Air China, to benefit customers and create revenue opportunities, cost savings and other efficiencies
