StoriesAugust 17, 1993

Associated Press

HOUSTON Continental Airlines, saying its financial comeback has fallen short of expectations, plans to cut 2,500 full-time jobs, halt service to nine cities Spokane among them and retire 30 older planes.

The Houston carrier, which emerged from its second bankruptcy in late April, lost $24.4 million, or $1.45 per share, for the period between April 28 and June 30.

''These results are less than we could have hoped for,'' Daniel Garton, Continental's chief financial officer, said Monday. ''We have to be realistic. Continental is coming back, we are going to return to profitability. (But) you can't turn on a dime. We're going to improve with time.''

Earlier this year, the airline's former chief financial officer testified in bankruptcy court that the carrier expected to resume making money once it implemented its bankruptcy reorganization plan.

John Luth, who has since been named senior vice president for restructuring, also said the airline expected an operating profit of $168.3 million between May and the rest of the year.

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Garton said the results reported Monday ''are short of what those projections are.'' But he also said he believes the results ''are in line with the industry.'' He said much of the loss was the result of discounts of up to 35 percent spread throughout the industry off and on since spring.

The staff reductions from a workforce of more than 42,000 will occur in part through attrition and will be completed by the end of the year. Layoffs were possible but only as a last choice, he said.

Of the nine cities scrapped by the airline, three are in the United States: Bismarck and Minot, in North Dakota, and Spokane. Service will cease Sept. 30.

Effective Oct. 30, Continental no longer will serve Australia and New Zealand. It will cease operations in Vancouver, British Columbia, effective Oct. 1.

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