Continental Airlines

Continental Airlines Inc., cutting 3,000 jobs as jet fuel soars, is offering workers health coverage for a year and free travel privileges until 2023 to encourage them to leave voluntarily.

U.S. airlines had more flights arriving on time, fewer passengers bumped from flights (or involuntarily denied boarding in airline lingo), fewer lost bags and fewer customer complaints last year, according to an analysis of Department of Transportation data. The Airline Quality Rating 2012 report says 10 of the nation's top 15 airlines improved their performance between 2011 and 2010. AirTran Airways , Hawaiian Airlines , JetBlue Airways , Frontier Airlines and Alaska Airlines ranked highest, and Continental Airlines (now United Airlines)

Continental Retreats on Fare Hikes: Continental Airlines withdrew an increase in summer discount fares after its competitors refused to follow with hikes of their own. The Houston-based airline owned by Texas Air Corp. announced last month that its popular Max Saver tickets purchased after May 26 would increase by as much as $80. "We withdrew that (plan) today," said John Nelson, Continental's executive vice president for marketing. "We can't afford to be noncompetitive in our prices."

Los Angeles International Airport will look a little different Tuesday as Alaska Airlines moves into a new space, and other airlines are switching terminals too. Alaska moves from Terminal 3 into a $271-million renovated space in Terminal 6 that includes a bigger lobby, more ticket kiosks and bag-drop areas, six international gates and electrical outlets on half of the seats in the gate area. ("No more sitting on dirty carpeting in the corner," the airline's statement promises.)

Continental Airlines Inc., the nation's fourth-largest carrier, posted a second-quarter loss of $3 million as fare increases failed to keep pace with rising jet fuel costs. The deficit of 3 cents a share compared with net income a year earlier of $228 million, or $2.03 a share, the Houston airline said Thursday. Excluding one-time gains and costs, Continental had an operating loss of $25 million, less than analysts expected. Continental is among the big U.S. airlines cutting seating capacity, grounding planes and paring payrolls to blunt this year's 49% jump in fuel prices.

Continental Airlines flight 1403 made history when it landed at O'Hare International Airport in Chicago on Monday, becoming the first revenue passenger trip in the U.S. powered by biofuel. The Boeing 737-800 burned a "green jet fuel" derived partially from genetically modified algae that feed on plant waste and produce oil. In completing the flight from Houston, parent company United Continental Holdings Inc. won by two days the competition to launch the first biofuel-powered air service in the U.S. On Wednesday, Alaska Airlines started 75 passenger flights along with its sister airline, Horizon Air, that will take place over the next few weeks using a biofuel blend made from recycled cooking oil. The 20% biofuel blend the planes will use will reduce carbon dioxide emissions 10%, Alaska Airlines officials said.

Los Angeles International Airport will look a little different Tuesday as Alaska Airlines moves into a new space, and other airlines are switching terminals too. Alaska moves from Terminal 3 into a $271-million renovated space in Terminal 6 that includes a bigger lobby, more ticket kiosks and bag-drop areas, six international gates and electrical outlets on half of the seats in the gate area. ("No more sitting on dirty carpeting in the corner," the airline's statement promises.)

Continental Airlines will begin daily nonstop service to Hilo (ITO) on Hawaii's Big Island from Los Angeles (LAX) next year, giving its Southern California customers another option for traveling to Hawaii . The new flights, beginning June 9, will use 160-seat Boeing 737-800 jets with 16 seats in first class and 144 in economy. Round-trip fares start at $625 plus tax for 14-day advance purchase, Continental spokeswoman Christen David said Wednesday. The daily outbound flight will leave Los Angeles at 5 p m. and arrive in Hilo at 7:40 p.m. The daily inbound flight will leave Hilo at 8:55 p.m. and arrive in Los Angeles at 5:15 a.m. the next morning.

Continental Airlines Inc. said Chairman and Chief Executive Gordon Bethune, 62, who restored profit at the fifth-largest U.S. carrier, would retire Dec. 31. President and Chief Operating Officer Larry Kellner will succeed him. Continental also said David Bonderman would quit as a director. Bonderman has faced union criticism for staying on the board after selling his Continental stake while retaining a stake in America West Holdings Corp., parent of rival America West Airlines.

The carrier paid a $402,000 fine for alleged safety violations, including improper pilot training, during the airline's rapid growth after a 1983 reorganization. The Federal Aviation Administration announced that Continental agreed to pay the fine as part of a settlement of all outstanding enforcement actions against the carrier.

The latest step in the merger of two of the nation's largest airlines -- United Air Lines and Continental Airlines -- was plagued with glitches over the weekend, but most of the airline's flights were on schedule by Sunday. The merger announced in 2010 will form the largest airline in the nation, under the name United. Many planes have yet to be repainted to carry the new United logo, but airline officials say the merger should be completed by the end of the year. On Saturday, all flights previously booked on Continental became United flights.

Another airline merger took a key step forward Thursday when the Federal Aviation Administration approved a certificate to allow Southwest Airlines and its subsidiary AirTran Airways to operate as one. The certificate is a crucial development in Southwest Airlines' $1.4-billion purchase of Orlando, Fla.-based AirTran, which was first announced in 2010. Since then, the two low-fare airlines have operated as separate carriers. Southwest officials say it will still take several years to repaint the exterior and remodel the interior cabins of AirTran's fleet of 138 jets before the two airlines can be completely integrated.

Almost two months after its parent company filed for bankruptcy, American Airlines said it would eliminate its two to three daily flights in and out of Bob Hope Airport and end service to Burbank. It will also end direct flights to India. The financially troubled airline based in Fort Worth also announced Monday that it planned to lay off 150 workers throughout the company, primarily because of the loss of a United States Postal Service domestic mail contract and the closing of an equipment refurbishment shop in St. Louis.

Continental Airlines serves Angus cheeseburgers on its flights. United Air Lines doesn't even have the right ovens to heat them. United loads passengers in window seats first. Continental boards from the back. And United has a specific way to load dogs onto a plane -- always tail-first as they ride up the conveyor belt in carrier cages. On Continental, there's no strict policy. These are just three of the thousands of differences in the daily practices and policies of United and Continental airlines.

Continental Airlines flight 1403 made history when it landed at O'Hare International Airport in Chicago on Monday, becoming the first revenue passenger trip in the U.S. powered by biofuel. The Boeing 737-800 burned a "green jet fuel" derived partially from genetically modified algae that feed on plant waste and produce oil. In completing the flight from Houston, parent company United Continental Holdings Inc. won by two days the competition to launch the first biofuel-powered air service in the U.S. On Wednesday, Alaska Airlines started 75 passenger flights along with its sister airline, Horizon Air, that will take place over the next few weeks using a biofuel blend made from recycled cooking oil. The 20% biofuel blend the planes will use will reduce carbon dioxide emissions 10%, Alaska Airlines officials said.

The U.S. airline industry has been on a hiring trend lately, but don't expect that to continue too much longer. For the ninth straight month, the airline industry added full-time employees in August, with employment numbers up 2.8% from the same month last year, according to the U.S. Transportation Department's Bureau of Transportation Statistics. In August, commercial passenger airlines employed 388,523 full-time workers in the U.S., up 10,688 workers from August 2010, according to the bureau.

How do airlines die? Somewhat slowly but surely, in the case of Continental Airlines. The October 2010 merger with United Airlines means Continental planes and flight codes are on their way to the aviation graveyard alongside Pan Am, TWA and other big-time carriers. (Nostalgia buffs take heart: the "Pan Am" TV series is set to start 10 p.m. Sept. 25 on ABC.) United spokesman Rahsaan Johnson explains what happens next. First planes get rebranded as United (which has been ongoing)