Continental to take $31M charge against value of 737s; expects total 2Q charges of $44 million

Continental to book $44 million in 2Q charges

HOUSTON — 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.