Continental Airlines Inc. (CAL) announced Thursday that it expects a slight decline in capacity for the first quarter, while consolidated and mainline load factors are expected to be about 4 to 5 points higher from the previous year. In a filing with the Securities and Exchange Commission, or SEC, the company noted that mainline domestic advanced bookings are running flat to down 1 point for the next six weeks. Separately, Continental said it reached a tentative agreement on a new four-year labor contract with the Transport Workers Union.
For the first quarter of fiscal 2010, the company's Cargo, Mail, and Other revenue is expected to be between $355 million and $365 million.
For the first quarter, consolidated load factor is projected between 79% and 80%, while mainline load factor is estimated in a range of 80% to 81%. Domestic and Latin America load factor is estimated between 81% and 82%, Transatlantic load factor between 76% and 77%, and Pacific load factor in the range of 79% to 80%.
For the quarter, capacity in available seat miles, or ASM, is projected to decline 0.2% on a consolidated basis, due to expected 1.6% decline in domestic capacity, while international capacity is expected to grew 1.5% from last year. Total mainline capacity is expected to remain flat with the previous year. Mainline domestic capacity is projected to decline 1.8%, and Transatlantic capacity is expected to fall 5.55, while the company sees 5% growth in Latin America capacity, and 15.5% increase in Pacific capacity.
The company said it anticipates ending the first quarter with an unrestricted cash, cash equivalents and short-term investments balance of between $3.1 billion and $3.2 billion.
For the next six weeks, the company said that mainline domestic advanced booked seat factor, i.e., percentage of available seats that are sold, is running flat to down 1 point, compared to the same period last year, and mainline Latin advanced booked seat factor is running up 3 to 4 points. The company also said that Transatlantic advanced booked seat factor is running down 2 to 3 points, Pacific advanced booked seat factor is up 4 to 5 points, and regional advanced booked seat factor is running flat to up 1 point for the next six weeks.
For the full year 2010, Continental expects consolidated as well as mainline load factor between 81% to 82%.
For the year, consolidated capacity is expected to be up 1% to 2% from last year. Mainline capacity is projected to be up 1% to 2%, with its mainline domestic capacity down about 1% and its mainline international capacity increasing 4% to 5%. According to the company, the international increase is primarily due to the run-rate of international routes added in 2009 and the restoration of the company's full schedule to Mexico following its capacity pulldown last year related to H1N1.
Continental estimates that its non-cash pension expense will be approximately $215 million for 2010.
As of March 18, 2010, the company's scheduled debt and capital lease payments for the full year 2010 are $982 million, with approximately $143 million, $454 million, $76 million and $309 million scheduled in the first, second, third and fourth quarters of 2010, respectively.
Further, the company said that it expects to receive six 787-8 aircrafts from Boeing in 2011, of which four will be delivered in the third quarter, and two in the fourth quarter. The company also expects to receive four 737-900ERs in the second quarter of fiscal 2011, and three 737-800s, of which two will be delivered in first quarter and one in third quarter of fiscal 2011.
In a separate statement, Continental announced Thursday that it has reached a tentative agreement on a new four-year labor contract with the Transport Workers Union, or TWU, that represents Continental dispatchers. The TWU is expected to hold a ratification vote in the coming weeks.
Continental, together with Continental Express and Continental Connection, has more than 2,500 daily departures throughout the Americas, Europe and Asia, serving 133 domestic and 135 international destinations.
CAL closed Thursday's regular trading session at $22.66, up $0.09 or 0.40%, on a volume of 2.26 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.