Continental Airlines to slash about 1,700 jobs

The US-based Continental Airlines, on Tuesday, posted a loss of US$213 million in the second quarter and said it will slash up to 1,700 jobs as a part of cost-cutting measures.

Grappling with declining revenues due to the global recession, the airline has reported a loss of US$213 million for the three months ended June 30, 2009, it said in a statement.

Continental Airlines would be cutting 1,700 jobs, including management and clerical positions, as part of cost-cutting measures, which are expected to rake in annual benefits worth US$100 million. The planned layoffs would be in addition to the previously announced elimination of 500 reservation agent positions and special company offered leaves of absence extended for 700 flight attendants.

The company said it is offering employees voluntary programmes to minimise the number of involuntary furloughs and reductions in force. Revenues for the second quarter stood at US$3.1 billion, a drop of 22.7 per cent over the same period a year-ago.

“Second quarter results were affected by declines in high yield traffic as many business travellers curtailed travel or purchased lower yield economy tickets,” it said.