Wall Street confident of Continental Airlines

Sunday, 12 Apr, 2005 0

At least one US air carrier is seeing brighter skies these days: Continental won Standard & Poor’s top rank.

Why?

Labor-cost reductions, higher revenues and fuller flights led S&P’s Equity Research Services to find signs of an improving financial picture.

S&P predicts Continental may return to profitability in 2006, but cites one continuing problem: high fuel prices.

Continental is the sixth-largest airline in the US, measured by revenue passenger miles.

Overall, S&P found the growth in airline passenger levels and fuller flights as encouraging signs for the future.

“We expect industry conditions to improve slightly in 2005,” said S&P.

Report by David Wilkening



 

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