Continental Airlines estimates a $30 million reduction in its consolidated May revenues due to falling demand triggered by the H1N1 flu that originated in Mexico.
After the onset of the flu Continental temporarily cut its capacity to Mexico by 50%. Prior to those cuts the carrier operated approximately 450 flights per week to the country, the largest amount of any US carrier.
At the time it announced the capacity decrease Continental said it was achieving the cuts through frequency reductions, which would allow for continued service to all of its 29 Mexican destinations.
Overall for May Continental says its consolidated unit revenues fell 19.5%-20.5% year-over-year, while the carrier's mainline unit revenues tumbled by 19%-20%.
May's results were a further deterioration from Continental's April unit revenue performance that included the Easter holiday. Continental's consolidated unit revenues dropped 13% in April, as mainline unit revenues decreased 11.3%.
Source: Air Transport Intelligence news
