HOUSTON (AP) — Continental Airlines Inc. says it will record a $31 million charge against the value of its Boeing 737s in its fiscal second-quarter results because of the falling market value of those planes.
The write-down covers 737-300 and 737-500 planes as well as spare parts. Continental is phasing out the 737-300 and many of its 737-500s by January.
The airline already reported a $58 million special charge on those planes last July.
Continental also says it will book an $8 million non-cash charge for disposing of three 737-300s, and a $4 million charge to write off obsolete spare parts. All together it is taking $44 million in special charges in the quarter ended June 30, almost all of it for planes and parts.
Continental is due to report second-quarter results on July 21.
Copyright 2009 The Associated Press.
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