Continental may cut jobs as fuel prices soar

http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1084907686941

Continental Airlines, the fifth largest US carrier, is considering lay-offs and cuts in wages and pension benefits in the most drastic response yet by the struggling US aviation industry to the impact of the surging oil price.

The airline announced that it had raised its fares worldwide with immediate effect with increases of $10 for each leg of a flight up to 1,000 miles and $20 above 1,000 miles.

It warned that with fuel prices at current levels and the present weak fare environment, it expected to make a loss in the second quarter to the end of June and "a significant loss for 2004 and beyond".

...more...

background info:

http://www.smarterliving.com/air/news.php?id=4699&ctid=i4699c17p231

Just because your carrier declares bankruptcy does not mean that it's going out of business, however. According to a CNN report, 19 airlines have filed for bankruptcy in the past 20 years, including some familiar names: Continental (twice), Frontier, and America West, all of which are still flying. But airlines that are being operated by the courts have been required as part of their reorganization to pare their flight schedules and reduce their spending on amenities like in-flight meals.

I'm not sure if it's a record price, but it's incredibly high. When oil goes to that price, it has a huge fallout. Think of the agri-business which is dependent on cheap gas prices. Trucking companies, transportation companies, and.....the airlines.

Stan Goff said our economy will come to a standstill when oil reaches $50/barrel. This should be a very interesting summer...

will be breaking out by August. Shrub will declare martial law and suspend Constitution. Its all going according to plan. Shhh...... :tinfoilhat: