Continental Airlines’ 2Q2009 financial results are unlikely to make for pleasant reading. For Jun-2009, consolidated and mainline passenger revenue per available seat mile (RASM) are both estimated to have decreased between 19.5 and 20.5% year-on-year. For May-2009, consolidated passenger RASM decreased 19.9% compared to May-2008, while mainline passenger RASM decreased 19.1% year-on-year.
As a result, second quarter consolidated RASM is expected to have declined by approximately 17.5%, following a 12.5% reduction in 1Q2009.
Continental Airlines Reports June 2009 Operational Performance
On the positive side, Continental ended 2Q2009 (30-Jun-2009) with an unrestricted cash, cash equivalents and short-term investments balance of approximately USD2.77 billion, up from USD2.65 billion as at 31-Mar-2009.
It also reported record domestic load factors in Jun-2009 (see below), which could signal some traction on pricing is imminent for the US carriers.
Continental Airlines’ Jun-2009 traffic report – edited press release
Continental Airlines reported a June consolidated (mainline plus regional) load factor of 84.8%, 1.1 points above the June 2008 consolidated load factor, and a mainline load factor of 85.2%, 1.0 point above the June 2008 mainline load factor.
The carrier reported an all time record domestic mainline June load factor of 88.1%, 2.2 points above the June 2008 domestic mainline load factor, and an international mainline load factor of 82.5%, 0.1 points above June 2008.
During the month, Continental recorded a US Department of Transportation (DOT) on-time arrival rate of 80.5% and a mainline segment completion factor of 99.8%.
In June 2009, Continental flew 8.1 billion consolidated revenue passenger miles (RPMs) and 9.5 billion consolidated available seat miles (ASMs), resulting in a consolidated traffic decrease of 6.5% and a capacity decrease of 7.8% as compared to June 2008.
In June 2009, Continental flew 7.2 billion mainline RPMs and 8.5 billion mainline ASMs, resulting in a mainline traffic decrease of 6.3% and a mainline capacity decrease of 7.5% as compared to June 2008. Domestic mainline traffic was 3.7 billion RPMs in June 2009, down 6.5% from June 2008, and domestic mainline capacity was 4.2 billion ASMs, down 8.8% from June 2008.
Continental's regional operations had a June load factor of 81.5%, 1.8 points above the June 2008 regional load factor. Regional RPMs were 846.5 million and regional ASMs were 1,038.8 million in June 2009, resulting in a traffic decrease of 8.2% and a capacity decrease of 10.3% versus June 2008.
Want more analysis like this? CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find out more and take a free trial.