Continental Airlines to slash 1,700 more jobs
Houston: US-based Continental Airlines is
slashing 1,700 jobs following a drop in passenger numbers
during the summer season amid a quarterly loss of USD 214
million reported between April and June.
"We must take aggressive steps to increase revenue and
reduce costs," said Continental Airlines Chief Executive
Officer, Larry Kellner, who is stepping down on January 1 and
will be succeeded by President and Chief Operating Officer
Jeff Smisek.
The job reductions and fee changes will produce USD 100
million in annual benefits when fully implemented next year,
the fourth-largest US air-carrier said on Thursday.
The job cuts, which represent 3.9 percent of
Continental's workforce, reflect the pressure on the industry
from the collapse of business travel in the recession and
fare sales to fill planes.
The reductions are on top of 1,200 eliminated positions
the carrier has announced since May.
Besides, the carrier will add USD 5 to checked-bag fees
for customers who do not prepay online and increase by USD 5
the cost to make a telephone reservation.
Continental's quarterly loss was its seventh in a row.
The deficit of USD 1.72 a share widened from a loss of USD
5 million, or 5 cents, a year earlier. Sales fell 23 percent
to USD 3.13 billion.
The Houston-based carrier had previously cut 500 jobs for
reservation agents when it shut Florida call center last
week.
It had given leave of absence to 700 flight attendants.
The carrier cut 3,000 jobs in 2008 as fuel prices rose to
record highs.
Bureau Report