Continental Airlines to cut 3,000 jobs, 67 planes as fuel costs soar

0 Comments | AFP, June, 2008

WASHINGTON (AFP) — US carrier Continental Airlines said Thursday it will cut 3,000 jobs and 67 less fuel-efficient planes from its fleet and reduce services to cope with soaring energy costs.

"The airline industry is in a crisis. Its business model does not work with the current price of fuel and the existing level of capacity in the marketplace. We need to make changes in response," the company said in a letter to its more than 45,000 workers from chairman and chief executive Larry Kellner and president Jeff Smisek.

"We will need to reduce our capacity to match the reduced demand ... Although these changes will be painful, we must adapt to the reality of today's market to successfully navigate these difficult times," the letter added.

Continental said the...