Continental Air follows American on capacity cuts Tuesday August 20, 11:23 AM EDT HOUSTON, Aug 20 (Reuters) - Continental Airlines (CAL <http://money.excite.com/jsp/qt/full.jsp?time=0&symbol_search_text=CAL> ), the No. 5 U.S. airline, said on Tuesday it will cut back on flights and park aircraft along with initiating new fees for low-fare customers in an effort to turn the tide on financial losses since the Sept. 11 attacks. The moves are expected to generate pretax gains of about $350 million annually once fully implemented and $80 million for the rest of 2002, the company said. Domestic capacity, measured in available seat miles, will be down 17 percent in August 2003 from levels in August 2001. The actions follow a decision last week by AMR Corp.'s (AMR <http://money.excite.com/jsp/qt/full.jsp?time=0&symbol_search_text=AMR> ) American Airlines, the world's largest airline, to cut 7,000 jobs, retire aircraft and also make schedule changes.