Continental Airlines, one of the few majors that had not been under bankruptcy court protection in the past three years, received some good news and bad news in its first-quarter 2006 earnings report. The good news is that the airline reported its first quarterly operating profit since the first quarter of 2001, compared with an operating loss of $173 million in the first quarter of 2005. Operating income was $11 million, despite a 31 percent increase in fuel prices in the first quarter compared to the same period last year. During the quarter, Continental's flight attendants also ratified a new collective bargaining agreement; that and other new labor agreements are expected to save Continental nearly $500 million annually. Yet, while the airline's financial picture has brightened, it still recorded a first-quarter 2006 net loss of $66 million.
