Continental to book $44 million in 2Q charges

[July 15, 2009]  HOUSTON (AP) -- Continental Airlines Inc. says it will record a $31 million charge against the value of its Boeing 737s in its fiscal second-quarter results because of the falling market value of those planes.

The write-down covers 737-300 and 737-500 planes as well as spare parts. Continental is phasing out the 737-300 and many of its 737-500s by January.

The airline already reported a $58 million special charge on those planes last July.

Continental also says it will book an $8 million non-cash charge for disposing of three 737-800s, and a $4 million charge to write off obsolete spare parts. All together it is taking $44 million in special charges in the quarter ended June 30, almost all of it for planes and parts.

Continental is due to report second-quarter results on July 21.

[Associated Press]

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