Continental is warning of a “deteriorating financial condition“:
Continental Airlines issued a warning Tuesday it would have to lay off significant numbers of workers, downsize its fleet and dramatically cut wages and benefits if employee unions don’t agree to concessions by month’s end.
The airline says it needs $500 million in employee cutbacks. Last month, it reached tentative deals with unions leaders for about $330 million in reductions, but those still need approval from rank-and-file members. The rest is coming from nonunion employees.
Houston-based Continental said Tuesday, however, that if the union approvals didn’t happen by March 30, it would need to increase the $500 million in proposed cuts to $800 million — a 60 percent increase.
The airline said its “deteriorating financial condition” would require the increased cutbacks.
