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HAGÅTÑA, Guam (Pacific Daily News, April 21) - Continental Airlines has reported a net loss of $184 million during the first quarter this year.

Extraordinarily high fuel prices and weak domestic yields continue to adversely affect results despite cost reduction efforts and recent fare increases in some domestic markets, according to the airline.

Fuel costs for the quarter increased $137 million in the first quarter, primarily because of a 39.5 percent increase in fuel prices compared to the same period last year.

Continental expects to achieve about $418 million of annual savings from pay and benefit cuts and work rule changes when they are fully implemented.

The company continues to work with the flight attendants, the only domestic group that did not ratify their agreement, along with Continental Micronesia employees and the remaining international work groups to reach agreements on pay and benefit reductions.

"While we lost money in the first quarter, I appreciate the commitment shown by my co-workers who took painful yet necessary action to quickly ratify new agreements," said Chairman and Chief Executive Officer Larry Kellner in a press release.

April 22, 2005

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