DALLAS -- (AP) Continental Airlines Inc. said today it will cut 1,700 jobs and raise fees for checking luggage after it posted a large loss for the second quarter amid falling traffic.
The Houston-based airline said it lost $213 million, or $1.72 per share in the quarter ended June 30, compared with a loss of $5 million, or 5 cents per share, a year earlier.
The 1,700 jobs cuts Continental announced amount to about 3.4 percent of its work force. They are on top of plans to eliminate 500 reservations agents and to put 700 flight attendants on leave.
Continental aims to raise $100 million a year with higher fees. The carrier boosted by $5 the fees for checking bags on U.S. flights -- to $20 for a first bag, $30 for a second for passengers who check bags at the airport instead of online. The change took effect immediately for flights on or after Aug. 19.
The airline also added $5 to the fee for booking a reservation over the phone, and it said more revenue-raising measures were coming.
Traffic measured in miles flown by paying passengers fell 6.4 percent compared with the second quarter of last year. Continental, including its regional affiliates, cut capacity even more sharply, by 7.8 percent, resulting in slightly fuller planes despite fewer passengers.
Airlines can cut capacity by flying fewer flights or using smaller planes.
The Houston-based airline said it lost $213 million, or $1.72 per share in the quarter ended June 30, compared with a loss of $5 million, or 5 cents per share, a year earlier.
The 1,700 jobs cuts Continental announced amount to about 3.4 percent of its work force. They are on top of plans to eliminate 500 reservations agents and to put 700 flight attendants on leave.
Continental aims to raise $100 million a year with higher fees. The carrier boosted by $5 the fees for checking bags on U.S. flights -- to $20 for a first bag, $30 for a second for passengers who check bags at the airport instead of online. The change took effect immediately for flights on or after Aug. 19.
The airline also added $5 to the fee for booking a reservation over the phone, and it said more revenue-raising measures were coming.
Traffic measured in miles flown by paying passengers fell 6.4 percent compared with the second quarter of last year. Continental, including its regional affiliates, cut capacity even more sharply, by 7.8 percent, resulting in slightly fuller planes despite fewer passengers.
Airlines can cut capacity by flying fewer flights or using smaller planes.
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