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Thursday, June 05, 2008
Continental Airlines to Cut 3,000 Jobs, Fly Fewer Flights
FOXBusiness
![Continental Airlines [276]](/images/stories/continental-airlines-276.jpg)
Houston, TX--Continental Airlines will cut 3,000 jobs, according to a letter sent to Continental employees by CEO Larry Kellner and Jeff Smisek, president.
The company will also begin reducing mainline departures by 16% in September, resulting in a total capacity reduction of 11% and 67 planes.
The letter opened by saying, “The airline industry is in a crisis,” and went on to detail that recently implemented fare increases still wouldn’t be enough to cover the rising cost of fuel.
The letter highlighted the cost of jet fuel in relation to each Continental employee, saying, “The price of Gulf Coast jet fuel closed yesterday at $151.26 -- about 75 percent higher than what it was a year ago. At that price and at our current capacity, our fuel expense this year would be $2.3 billion more than it was last year. That increase alone amounts to about $50,000 per employee.”
The letter said that 3,000 positions, including management would be “eliminated through voluntary and involuntary separations, with the majority expected to be through voluntary programs.” Larry Kellner and Jeff Smisek have declined to accept a salary for the rest of the year, and have also declined any bonuses.
Continental says it will provide more details on the flights subject to elimination by the end of next week.
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