Continental, Workers Agree to Benefit Cuts

Continental Airlines Inc., the fifth-biggest U.S. airline, said it agreed on $99 million in wage and benefit cuts with some non-union workers in a step toward avoiding hundreds of millions of dollars in losses this year.

The cuts for 12,000 ticket counter, gate and operations employees take effect Feb. 28, the Houston-based carrier said. They include unspecified changes to wages, overtime rules, and pension and holiday compensation.

Continental on Jan. 6 said it might lose hundreds of millions of dollars in 2005 and have “inadequate liquidity to meet its obligations” if $500 million in cuts weren’t obtained by the end of February. The airline, which reports fourth-quarter earnings Thursday, lost $157 million in the first three quarters of last year and has $984 million in debt and pension payments due this year.

From Bloomberg News