HEY, Lets get profitable! but leave my pay alone.

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Continental Boosts Profit Sharing as Wage Cuts Near



Tuesday January 4, 2:24 PM EST


HOUSTON (Dow Jones)--Continental Airlines Inc. (CAL) sweetened the terms of its employee profit sharing program, a move that could help offset expected pay cuts, if the airline makes a profit.

In a press release Tuesday, Continental said that for the next five years it will share 30% of its first $250 million in pretax income, 25% of the next $250 million, and 20% of pretax income over $500 million.

Previously, the company shared 15% of any pretax profits.

The airline plans to implement $500 million in annual wage and benefit cuts by Feb. 28, and will start the new profit-sharing program after it meets that goal.

Among Continental employees, the profit-sharing pool will be allocated partly based on the severity of the cuts, partly based on wages.



Continental has previously said it expects to post a big loss in 2004, and may post a loss in 2005 as well.

Continental's New York Stock Exchange-listed shares were down 11.9%, or $1.66, to $12.30 in recent trading on heavy composite-volume of about 3.38 million shares, compared with average daily volume of 1.77 million shares.

Company Web site: http://www.continental.com

-Ian Salisbury; Dow Jones Newswires; 201-938-5400; AskNewswires@xxxxxxxxxxxx


Roger
EWROPS

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