Continental Airlines said it would take foreign exchange losses of about US$10 million in the second quarter from the decline of the Euro and the British pound against the US dollar.

Continental, which is seeking to merge with United Airlines also said domestic advanced bookings for its mainline flights for the next six weeks are down four to five percentage points compared with last year. Transatlantic early bookings, on the other hand, are up one to two percentage points, while Pacific bookings are up 10 to 11 percentage points.

Continental expects its cargo, mail and other revenue for the second quarter to be in the range of $385-395 million.