News
Continental Airlines to cut 3,000 jobs, cut capacity by 11 per cent in `crisis’ (Continental-Airline

June 5, 2008, New York – Continental Airlines Inc. said Thursday it is cutting
3,000 jobs and reducing capacity in the fourth quarter by 11 per cent, citing record fuel costs and an industry in “crisis.''

Also, the company's chief executive and president say they will
not take a salary for the rest of this year and will decline
bonuses.

The job cuts represent about 6.5 per cent of the company's total
staff of 45,000.

The carrier said it will start pulling back on flights in
September, when it expects mainline departures will be down about 16
per cent year-over-year. This will result in a total capacity
reduction of about 11 per cent.

By the end of the second quarter, Continental will operate 375
mainline aircraft. Houston-based Continental plans to take 67 planes
out of service through 2009.

The company said several fare increases have not been enough to
offset the rising cost of fuel. With the price of jet fuel about 75
per cent higher than a year ago, Continental estimates it will spend
$2.3 billion more this year than last.

“These actions are among many steps Continental is taking to
respond to record-high fuel prices as the industry faces its worst
crisis since 9-11,'' the company said in a statement.

On Wednesday, United Airlines set plans to take 70 more jets out
of service and cut U.S. capacity by 17 to 18 per cent in 2008-09.
That came two weeks after a similar move by  American Airlines,
which said it would slash domestic capacity 11 to 12 per cent after
the peak summer travel season.