Continental to slash 3,000 jobs on high fuel costs

05 June 2008 15:56  [Source: ICIS news]

HOUSTON (ICIS news)--US carrier Continental Airlines will cut about 3,000 jobs and retire 67 aircraft as it contends with record high jet fuel costs, the company said on Thursday.

For 2008, Continental said its jet fuel expenses would increase by $2.3bn year on year, or $50,000/airline employee.

To save money on fuel, Continental said it would remove the least efficient aircraft from its fleet.

The company planned to retire 67 Boeing 737-300 and 737-500 aircraft, with 27 of them being removed in September, Continental said, adding by the end of 2009, all 67 would no longer be in the fleet.

At the same time, Continental would continue placing orders for fuel-efficient aircraft from Boeing, the company said. As a result, the net effect would bring the company's mainline fleet down to 344 at the end of 2009, compared with 375 in the second quarter of this year.

($1 = €0.65)

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By: Al Greenwood
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