Subsidies and exceptionals mask Continental figures

Continental Airlines has reversed 2002 losses with a full-year profit of $38m (€30.32m), the company said today.

Exceptional items and a US government subsidy saw Continental overcome a net loss of $161m (€128m) last year.

However, with the a $111m (€88.53m) 'government security fee reimbursement' and net gains of $136m (€108m) from exceptionals, including the sale of ExpressJet stock and stakes in Hotwire and Orbitz excluded from the figures, the company showed a net loss of $209m (€166m).

The world's seventh largest airline said it would struggle to break even in 2004 due to high fuel prices but would focus on trying to make $500m (€399m) in cost savings.

Continental surprised analysts somewhat when losses before exceptionals in Q4 came in at 58 cents a share. Losses of 81 cents a share had been forecast.

The airline saw its load factor - the number of seats filled per journey - rise 4.4% to stand at 75.5% overall.