DOW JONES NEWSWIRES
Continental Airlines Inc.'s (CAL) traffic and capacity edged
lower in August from a year earlier, though its plane occupancy
rate increased and hit a new high for the month.
All three statistics had increased in both June and July as
demand continued to pick up from weak levels in early 2009.
Meanwhile, passenger revenue per available seat mile surged
again as business and pleasure travel picked up from low levels set
during the recession. The key performance measure jumped between
18% and 19% in August, Continental estimated Wednesday, after a 21%
increase in July.
For its mainline operations, Continental said traffic slid 0.7%
in August while capacity decreased 1.3%. Load factor, a measure of
plane occupancy, rose from 86.6% to 87.2%--a record for the
month--on international strength.
On a consolidated basis--which includes both mainline and
regional operations--traffic fell 0.4% while capacity lost 1.1% and
occupancy rose to 86.5% from 85.8%.
Last week, Continental and United Airlines parent UAL Corp.
(UAUA) said they expect their merger to close Oct. 1 after they
were notified the Department of Justice had concluded its
investigation of the proposed deal. The $3 billion stock swap would
create the world's biggest airline by capacity. On Monday, the U.S.
Department of Transportation granted a route-transfer exemption,
bringing the carriers another step closer to completing the
deal.
Last month, Continental reported a higher quarterly profit than
expected thanks to improved demand.
Shares closed at $23.17 and were inactive after hours. The stock
is up 29% so far this year.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com