Continental Expects to Show a Profit if Court OKs Plan
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WILMINGTON, Del. — Continental Airlines, nearing the end of its bankruptcy reorganization case, said Wednesday it expects to see profit this year and will scale back its orders for new planes by $1 billion.
Parent company Continental Airlines Holdings Inc. said the Houston-based airline expects to show net and operating profits through 1996 if its reorganization plan is approved by U.S. Bankruptcy Court.
“The company will achieve . . . and maintain profitability,” John Luth, Continental’s chief financial officer, testified during court hearings on the plan. He said the airline will show an operating loss of $181 million in January-April, 1993, before emerging from bankruptcy.
But the loss would be offset by a $795-million infusion as it clears debt off its books, thus giving Continental a net profit of $567 million for the period.
Continental is forecasting an operating profit of $168.3 million and a net profit of $26.9 million for the rest of 1993.
For 1994 it forecasts an operating profit of $26.9 million and a net profit of $79.3 million, Luth said.
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