The rising cost of fuel continues to hit Guam residents and businesses hard. Continental Micronesia announced today its plans to implement schedule reductions. Beginning July 26th the airline will discontinue service between Saipan and Manila. In addition, beginning July 28 Continental Micronesia will suspend flights from Guam to Hong Kong. Likewise, beginning October 2 flights from Guam to Denpasar, Bali will also be suspended. "While these are very difficult decisions to make, the record fuel costs, combined with lower customer demand in these markets, lead to the decision to suspend service," stated Continental Micronesia Chief Executive Officer Mark Erwin.


Since January 2007, jet fuel costs have spiked dramatically, increasing almost $100 per barrel or more than 140 percent. Each dollar of oil increase has an annual impact to Continental Airlines of $45M. "These schedule changes in Asia Pacific will result in a four percent year-over-year decline in CMI mainline capacity and combined with the April 2008 suspension of Nagoya-Honolulu service will result in 21 percent year-over-year decline in a CMI mainline capacity (available seat miles, or ASMs) in the fourth quarter. These changes are part of the worldwide mainline system capacity reduction previously announced by Continental Airlines last week," said Erwin.