Houston-based Continental Airlines announced Tuesday it will cut 1,700 jobs and raise fees for checking luggage.
Continental posted a large loss for the second quarter amid falling traffic. CEO Lawrence Kellner said Continental must take aggressive steps to increase revenue and reduce costs.
Continental lost $213 million in the quarter that ended June 30, compared with a year-ago loss of $5 million.
Excluding one-time charges, the loss was $169 million after revenue tumbled nearly 23 percent.
The 1,700 jobs cuts amount to about 3.4 percent of Continental's work force. Those layoffs are on top of plans to eliminate 500 reservations agents and to put 700 flight attendants on leave.
Also, the carrier boosted by $5 the fees for checking bags on U.S. flights. Continental also added $5 to the fee for booking a reservation over the phone.