Continental to cut 1,700 jobs
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Continental Airlines posted a steeper second-quarter loss as the slump in business travel and fears about the H1N1 virus hurt revenue, and said it will cut its work force by 4%. Reuters reported that the Houston-based carrier will cut 1,700 jobs and increase checked baggage fees by US$5, effective 19 August.The airline’s net loss for the April-June period widened to US$213 million, from US$5 million in Q2 2008. Revenue dropped 22.7% to US$3.1 billion as business travellers cut back on travel or bought cheaper economy-class tickets. The A(H1N1) virus cost the carrier about US$50 million in passenger revenue, the report added.Continental said its job cuts, which will include management positions, could save the firm US$100 million by next year. The cuts are part of “aggressive steps to increase revenue and reduce costs”, Continental’s CEO, Larry Kellner, said. The new round of planned job cuts come after it eliminated 500 reservation agent positions. The company also offered leaves of absence for 700 flight attendants.
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