The fourth-largest US airline also said it is comfortable with its bookings over the next six weeks. The outlook, which was issued in a government filing, came as experts speculate on how massive capacity cuts, fare increases and unpopular fees will impact travel demand.
Continental introduced the fee to check a single bag last week, matching those implemented by rivals this year as carriers attempt to off set skyrocketing fuel bills. Continental said the US$100 million would be generated through the new revenue as well as cost savings from not having to check as many bags.
The airline, which plans to trim its domestic mainline capacity by 11 per cent in the fourth quarter, said it expects that number to be down 2.9 per cent inthe third quarter.
