Not really news.... Walter DCA By Patrick Markey NEW YORK, Jan 16 (Reuters) - Continental Airlines Inc. (CAL), the fifth-largest U.S. carrier, on Wednesday reported a $149 million fourth-quarter loss, as the lingering travel slump after the Sept. 11 attacks on the United States and the weak economy eroded its revenues. But the Houston-based carrier showed signs of a steady recovery from the steep revenue drop it faced immediately after the assaults and its shares rose nearly 6 percent during Wednesday trading. The shares finished trading up $1.71 at $31.10 on the New York Stock Exchange. Continental Airlines Chairman and Chief Executive Gordon Bethune said the fourth quarter proved difficult, but the airline still expects to break even by March and report a "modest" second-quarter profit. "No doubt about it, this is a tough economic environment to operate in and just like past hurdles that looked insurmountable, Continental will emerge, I believe, successfully," Bethune told investors on a conference call. In an indicator of industry outlook, Continental said it is in talks with commercial aircraft maker Boeing Co. (BA) on deferring some firm aircraft orders due for delivery between 2002 and 2005. Continental, one of the few airlines to post profits during 2001, reported a fourth-quarter net loss of $149 million, or $2.58 per diluted share, including $174 million in cash payments from the federal bailout program initiated by last year's attacks. Excluding the government cash and special items, the airline reported a fourth-quarter loss of $220 million. NO LOAN GUARANTEE SEEN U.S. airlines, battered by the economic slump and slowdown in lucrative business travel, have trimmed their fleets and slashed fares to lure wary passengers back to the skies. But Bethune said it was now "increasingly remote" that Continental would need to apply for the loan guarantee portion of the Bush administration's $15 billion bailout package. Continental said it still faces a daily cash burn of about $3 million to $4 million through January and February and does not expect a significant pickup in high-yield business travel demand until after that. Airlines draw about two-thirds of their revenue from the high-paying business travelers. Yields have suffered as corporate customers stay away and the industry trims fares. The airline said its fleet capacity will be down about 13 percent in the first quarter and down about 11 percent in the second quarter. While it plans to take delivery of about 20 Boeing aircraft during the first half of this year, the airline expects no further Boeing deliveries until after the first half of 2003. An exclusive Boeing customer, Continental currently has orders for 41 Boeing jets, plus options. The carrier took delivery of 36 Boeing jets in 2001, including 13 after the September hijacking assaults. The airline said its revenues fell more than 28 percent to $1.74 billion from $2.43 billion a year earlier and it ended the fourth quarter with $1.13 billion in cash. Wall Street analysts were encouraged that Continental's revenues appeared to be improving as traffic strengthened through the quarter. "They will probably lead the industry in recovery and they still have a chance of posting a small profit in the second quarter," ABN Amro airline analyst Ray Neidl said. Industry watchers believe U.S. carriers will post a loss totaling $6 billion to $8 billion for 2001, though a recent drop in oil prices and a steady return of air traffic have eased airline woes somewhat. Most analysts are expecting an industry turnaround by late 2002.