Continental to slash 1,700 jobs
Job cuts, represent 3.9 per cent of workforce.
By PTI |
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 $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 $100 million in annual benefits when fully implemented next year, the fourth-largest US air-carrier said Thursday.
The job cuts, which represent 3.9 per cent 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 $5 to checked-bag fees for customers who do not prepay online and increase by $5 the cost to make a telephone reservation.
Continental's quarterly loss was its seventh in a row. The deficit of $1.72 a share widened from a loss of $5 million, or 5 cents, a year earlier. Sales fell 23 per cent to $3.13 billion.
"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 $100 million in annual benefits when fully implemented next year, the fourth-largest US air-carrier said Thursday.
The job cuts, which represent 3.9 per cent 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 $5 to checked-bag fees for customers who do not prepay online and increase by $5 the cost to make a telephone reservation.
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Continental's quarterly loss was its seventh in a row. The deficit of $1.72 a share widened from a loss of $5 million, or 5 cents, a year earlier. Sales fell 23 per cent to $3.13 billion.
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