Soaring fuel costs hit Continental

Higher fuel costs were blamed for eating up much of Continental Airlines Inc.'s first-quarter net income.

Excluding special items, the Houston-based airline on Thursday reported a net loss of $80 million, or 81 cents per share, on revenue of $3.6 billion, for the three months ended March 31, 2008. That compared with net income of $22 million, or 21 cents per share, on revenue of $3.2 billion, for the same quarter in 2007.

Analysts polled by Thomson Financial expected Continental (NYSE: CAL) to have a net loss of 93 cents per share.

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The company said fuel costs during the quarter increased 53.2 percent, or $364 million, compared with the first quarter of 2007. Meanwhile, jet fuel went as high as $139.67 a barrel during the quarter.