=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2004/04/15/f= inancial0841EDT0033.DTL --------------------------------------------------------------------- Thursday, April 15, 2004 (AP) Continental reports quarterly loss, high fuel costs a factor (04-15) 05:41 PDT HOUSTON (AP) -- Continental Airlines narrowed its first-quarter loss, but executives said higher fuel costs remain an obstacle to profitability. The Houston-based carrier lost $124 million, or $1.88 per share, includi= ng $35 million in earlier announced after-tax special charges, compared with a loss of $221 million, or $3.38 per share, from the year-ago period. The loss per share, excluding the special items, was $1.36 for the quart= er ended March 31, compared to a $1.43 loss per share expected by Thomson First Call. The special items included a non-cash charge of $22 million after taxes, related to the ending of a 1993 service agreement with United Micronesian Development Association, and a $12 million after-tax charge associated with future obligations for rent and return conditions related to three MD-80 aircraft that were permanently grounded during the quarter. Revenue for the latest quarter improved 11 percent to $2.27 billion, compared with $2.04 billion in the year-ago period. Executives said the carrier's jet fuel expense for the latest quarter would have been $102 million lower if prices had been at their five-year average through last year. "We've made tremendous progress removing non-value added costs from our operations while maintaining a superior product," Continental chairman and chief executive Gordon Bethune said in a statement accompanying the report. "The outrageously high cost of fuel remains a challenge to our return to profitability." Airline officials said their regional operations continued to provide significant growth for the company, with revenue passenger miles for regional operations up 43 percent on a capacity increase of 35.8 percent during the first quarter, compared with the same period in 2003. ---------------------------------------------------------------------- Copyright 2004 AP