Continental Connection Flight 3407 from Newark, New Jersey to Bufallo, New York crashes into a house, killing 50. http://biz.yahoo.com/ap/090213/plane_into_home_aircraft.html?.v=4
CAL reports airline-specific metrics for January 2009. Results show decrease in fliers from January 2008. http://biz.yahoo.com/prnews/090202/da65698.html?.v=1
Crude oil prices dropped $1.58 on 12/24 to $37.40/barrel signaling improved profitability for airlines.
The company reported both larger revenue ($4.16 vs $4.12) and net loss (-$236 vs -$164) than analysts expected for the 3rd Quarter. Average full prices jumped from $2.16/gallon last year to $3.49 this quarter. The company also claimed that Hurricane Ike cost them $50 million in various capacities.
Continental rose nearly twice as much as the Amex Airline Index after announcing they would generate $100 million from their new bag check fee. The source of the $100 million will be from both actual fee revenue and cost saving related to less bags being checked. [1]
Following the lead of the rest of the industry, Continental announced the cutting of 3000 jobs and retiring of 67 planes from its fleet.
Rumors surface on Jan 9 and are confirmed on Jan 15 of merger talks with Delta. Airline industry mergers historically drive up share prices because they consolidate markets, reduce competition, and help drive up ticket prices.
Fuller planes and increased capacity led to a higher load factor for the airline. The percentage of seats filled increased to 79.0 percent from 78.2 percent one year prior.
