Continental Airlines sees "significant" 2003 loss

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Continental Airlines sees "significant" 2003 loss  =

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Thursday February 13, 6:45 PM EST =


HOUSTON, Feb 13 (Reuters) - Continental Airlines (CAL) expects to post a =
"significant loss" in 2003 and its limited cash resources makes it less a=
ble to weather a long industry slump than rival carriers, the airline sai=
d in a securities filing on Thursday

The Houston-based No. 5 U.S. carrier in its annual report to the Securiti=
es and Exchange Commission also noted that rival airlines emerging from b=
ankruptcy will likely have lower cost structures and more operating flexi=
bility than Continental.

Continental has outstanding orders for 67 jetliners from Boeing Co. (BA) =
valued at $2.5 billion and slated for delivery through 2008, including fo=
ur due in the fourth quarter of 2003. The airline has no backstop financi=
ng from Boeing for those aircraft.

Continental said it has access to enough cash to see it through 2003, but=
 will need new financing to meet its ongoing capital requirements. The ai=
rline was unable to forecast whether sufficient financing would be availa=
ble.

The company as of Dec. 31, 2002 had $5.7 billion in long-term debt and ca=
pital lease obligations on its balance sheet, compared to $767 million in=
 stockholders' equity. =



=A92003 Reuters Limited. =


Roger
EWROPS

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