Continental Airlines Inc. on Wednesday posted a wider quarterly loss as record fuel prices and sweeping price cuts by rival carriers took a heavy toll on its business.
The airline also said it still expects to post a “substantial” loss for 2005 because of high fuel costs and cutthroat competition.
Like other traditional U.S. airlines, Continental has sunk deeper into the red this quarter even as its planes fly fuller as cutthroat competition has prevented it from raising fares enough to compensate for surging oil costs.
The Houston-based airline said its first-quarter loss increased to $184 million, or $2.77 a diluted share, compared with $124 million, or $1.90, a year earlier.
That compared with a forecast loss of $2.85 a diluted share, according to Reuters Research.
The No. 5 U.S. airline said revenue rose 8.6 percent to $2.5 billion.
Continental ended the quarter with $1.38 billion in cash and short-term investments, down from $1.46 billion at the end of last year.
Some analysts have warned that Continental and other leading airlines risk a liquidity crunch later this year if fuel prices stay at their current levels.
