Continental Air to scale back as oil prices soar
NEW YORK (Reuters) - Continental Airlines Inc said on Thursday it will stop flights from its hubs to more than 40 domestic and international destinations as of September 3 as it scales down in the face of soaring oil prices.
The bulk of the cuts will come at Continental's Houston and Newark, New Jersey, hubs. Among the services being discontinued include flights from Newark to Cologne, Germany, and from Houston to Washington.
The cuts were detailed as Continental released more information about the capacity reductions it announced last week in response to record fuel prices.
Last week, Continental said it would cut 3,000 jobs, or about 6.5 percent of its work force, and retire 67 older planes.
On Thursday, Continental said its cuts will result in an 11 percent decline in domestic mainline capacity, or available seat miles -- reflecting the number of seats for sale and length of flight -- in the fourth quarter, compared with the same period last year.
The changes will result in a 6.4 percent decline in consolidated -- mainline plus regional -- capacity in the fourth quarter.
On Thursday, Continental said that as of September 3, it will stop service between its hubs at Houston, Newark, Cleveland and Guam and more than 40 domestic and international destinations.
As a result, the airline will close its offices at 15 domestic and international locations.
The No. 4 carrier is the latest of the major U.S. airlines to announce large cutbacks as they grapple with unprecedented oil prices, which have doubled in the past year.
UAL Corp's United Airlines has announced plans to slash jobs and flights, following a similar move by AMR Corp's American Airlines.
Continental's shares were trading up 42 cents or 3.5 percent at $12.52 on Thursday afternoon after reaching as high as $13.20 earlier.
(Reporting by Mark McSherry; editing by Jeffrey Benkoe and Gerald E. McCormick)
