This article from NYTimes.com has been sent to you by psa188@xxxxxxxxx /-------------------- advertisement -----------------------\ Explore more of Starbucks at Starbucks.com. http://www.starbucks.com/default.asp?ci=1015 \----------------------------------------------------------/ Continental's Loss Widens Amid Travel Slump April 16, 2003 By REUTERS CHICAGO, April 15 - Continental Airlines Inc. posted a wider first-quarter loss today as the Iraq war caused fuel prices to spike and sapped demand for air travel, leaving revenue flat while costs increased. The airline, the nation's fifth largest, also said that it might have to cut more workers and flights if demand for travel softened further. "We are not sitting idly by and waiting for the revenue picture to improve," Jeff Misner, Continental's chief financial officer, said in a statement. "Our goal is to align our cost structure with the revenue environment that exists today." The Houston-based company said its quarterly loss climbed to $221 million, or $3.38 a share. A year earlier it posted a net loss of $166 million, or $2.61 a share. A 64 percent year-over-year increase in jet fuel prices took a toll in the quarter, adding $135 million to costs, the airline said. Total revenue rose 2.5 percent, to $2.04 billion from $1.99 billion a year earlier. Analysts expect the nation's airline industry to post operating losses totaling about $3 billion for the quarter. The war in Iraq and the outbreak of severe acute respiratory syndrome, or SARS, have hurt demand for air travel, which was already at its lowest level in decades. Last month, Continental said it expected to cut 1,200 jobs, or 2.5 percent of its work force, by the end of the year as part of a plan to trim $500 million a year in expenses. It will also cut 2 percent of its flights this summer because of weak demand. The airline said its loss included an after-tax charge of $41 million, or 63 cents a share, related mostly to the reduced market value of its MD-80 aircraft fleet and spare parts for grounded planes. http://www.nytimes.com/2003/04/16/business/16CONT.html?ex=1051525537&ei=1&en=dd782265ea6ff300 HOW TO ADVERTISE --------------------------------- For information on advertising in e-mail newsletters or other creative advertising opportunities with The New York Times on the Web, please contact onlinesales@xxxxxxxxxxx or visit our online media kit at http://www.nytimes.com/adinfo For general information about NYTimes.com, write to help@xxxxxxxxxxxx Copyright 2003 The New York Times Company