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| Continental Airlines to cut 1,700 jobs |
| Press Trust of India / New York Jul 21, 2009, 19:49 IST |
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The US-based Continental Airlines today posted a loss of $213 million in the second quarter and said it will slash up to 1,700 jobs as a part of cost-cutting measures.
Grappling with declining revenues due to the global recession, the airline has reported a loss of $213 million for the three months ended June 30, 2009, it said in a statement today.
Continental Airlines would be cutting 1,700 jobs, including management and clerical positions, as part of cost-cutting measures, which are expected to rake in annual benefits worth $100 million.
The planned layoffs would be in addition to the previously announced elimination of 500 reservation agent positions and special company offered leaves of absence extended for 700 flight attendants.
The company said it is offering employees voluntary programmes to minimise the number of involuntary furloughs and reductions in force.
Revenues for the second quarter stood at $3.1 billion, a drop of 22.7 per cent over the same period a year ago.
"Second quarter results were adversely affected by significant declines in high yield traffic as many business travellers curtailed travel or purchased lower yield economy tickets due to the weakened economy," the firm said.
In addition, the H1N1 virus reduced second quarter consolidated passenger revenue by an estimated $50 million.
"In response to the significant decline in revenue, Continental is implementing a number of measures to raise revenues and reduce costs that are designed to achieve approximately $100 million in annual benefits when fully implemented in 2010," it added.
Globally, airlines are facing tough times in the wake of the raging financial turmoil.
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