DOW JONES NEWSWIRES
Continental Airlines Inc. (CAL) expects U.S. traffic to fall for
the third quarter while international traffic increases.
U.S. capacity, or the number of seats, also is expected to
decline for the quarter and year while international capacity
increases because of the international routes added in 2009 and the
restoration of it full schedule to Mexico after a contraction last
year related to H1N1 flu virus.
Meanwhile, its consolidated load factor--for both mainline and
regional operations--is projected at 85% to 86% in the third
quarter and 83% to 84% for the year. Load factor is a measure of
plane occupancy.
Continental said its mainline U.S. advanced booked seat factor
is down 0.6 points, but up 0.8 points internationally, for the next
six weeks compared with a year earlier.
U.S. capacity is seen sliding 1.3% and 0.9% in the third quarter
and 2010, respectively, for its mainline operations.
On a consolidated basis, U.S. capacity is expected to slide 0.7%
for the quarter and 0.5% for the year, while international capacity
grows 2.1% and 2.3%, respectively.
The nation's No. 4 airline by traffic, which plans to merge with
United Airlines parent UAL Corp. (UAUA) this fall, said the
estimates do not include possible effects of the planned deal.
Early this month, Continental said 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.
Last month, the airline reported a higher quarterly profit than
expected thanks to improved demand.
Its shares closed at $23.79 and were inactive after hours.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
kathy.shwiff@dowjones.com