Continental Airlines on Tuesday posted a third-quarter loss, reversing a year-earlier profit, as it was hurt by record-high fuel prices and a one-time charge for retiring some aircraft.
The company also warned it would have a large loss for the year and for 2005 unless the current environment of high fuel and low yields improves.
The Houston-based carrier said it had a loss of $16 million, or 24 cents per share, compared with a profit of $133 million or $1.83 a share in the third quarter of 2003.
The airline said it posted one-time charges of $22 million in the quarter primarily due to the retirement of leased MD-80 aircraft. Excluding the charges, Continental recorded a profit of $6 million, or 8 cents share for the quarter, although that figure included a $15 million gain relating to the sale of the company's stake in Orbitz Inc stake.
Orbitz announced last month that it would be acquired by Cendant Corp.
Excluding special items, Wall Street analysts were expecting a loss of 17 cents a share, according to Reuters estimates.
Continental did not break down how much the record high costs of jet fuel added to its expenses in the quarter, but the carrier has said it expects fuel to add several hundred million dollars to its costs this year.
Its cost per available seat mile - a measure used by the industry for costs - increased 4.9 percent from the same year-earlier quarter, mostly due to fuel, to hit 9.45 cents, it said.
"With oil at stratospheric prices and the government siphoning off more than $1 billion annually in fees and non-income related taxes, it's amazing that we were able to produce these modest results for the quarter," said Gordon Bethune, Continental's chief executive.
Revenue for the quarter was $2.4 billion, 8.7 percent higher than the same period in 2003, due to increased revenue from international flights and more regional flying, it said.