Continental Airlines Goes Back in Black

Continental posted its first full-year profit since 2003 in spite of a narrow fourth-quarter loss and said the result shows its plan is actually paying off.

The carrier recorded a $343 million full-year gain, while the seasonally weak fourth quarter netted the airline a $26 million loss.

Chairman and CEO Larry Kellner said Continental, in contrast to most of its competitors, plans to continue to provide amenities such as complimentary meals, pillows and blankets. He said they help position the brand and satisfy customers, especially corporate travelers.

The full-year profit includes a $92 million gain from the sale of a portion of Continental’s investment in Copa Airlines. But the result is still a major improvement from the airline’s $68 million loss in 2005.

Continental ended 2006 with $2.48 billion in unrestricted cash and short-term investments. The air carrier credited its cost reduction efforts and a 17 percent improvement in revenue for overcoming $510 million in additional expenses attributable to higher fuel prices.