US carrier Continental Airlines today reported a higher-than-expected first-quarter loss of $221 million.
The war in Iraq and its effect on oil prices added $135 million to the airline's fuel bill.
The airline, which is seen as a bellwether for the rest of the US airline industry, said the net figure, equivalent to $3.38 a share loss, included a previously announced after-tax charge of $41 million which relates to the reduced value of the airline's MD-80 fleet.
Last year the airline reported a net loss of $2.61 a share, or $166 million.
The First Call estimate for the quarter was for a loss of $2.80 a share, or $3.43 when the special charge was included.
Taking into account the special charge, consolidated passenger load factor fell to 68.9 per cent from 73 per cent, while cost per available seat mile including special charges rose to 10.25 cents from 10.09 cents a year earlier.
"First-quarter results were significantly impacted by the war in Iraq and its effect on fuel prices. Fuel prices were 63.7 per cent higher, year over year, resulting in approximately $135 million of additional fuel expense," Continental said in its results statement.
Mr Gordon Bethune, chairman and CEO, also blamed the threat of domestic terrorism, SARS, a poor economy and high tax burdens.
AFP