Continental Expects ‘Significant Loss’

NEW YORK (Reuters) – Continental Airlines Inc. (NYSE:CAL – news) expects to post “a significant loss” in 2005 and may have to furlough employees and sell planes if workers do not ratify $500 million in wage and benefit cuts, the No. 5 U.S. carrier warned on Tuesday.

Continental said in a regulatory filing it could also face a cash crunch later this year if fuel prices rise further or if unions reject the tentative pay cut deal.

The Houston-based airline would seek $800 million in new pay cuts if its pilots, flight attendants and mechanics vote down the previous package, tentatively agreed with unions at the end of February and due to take effect at the end of March.
Reuters via Yahoo!.