Continental Airlines expects to post "a significant loss" in 2005 if the climate of high fuel prices and tough industry competition does not ease, the carrier said in a regulatory filing on Tuesday.

Continental also warned that several factors outside of its control, including even higher fuel prices, could result in the airline being unable to generate sufficient cash from operations or complete financing deals needed to keep adequate cash on hand through year-end.

Things are unlikely to get much better for Continental in 2006 and the following years, when it has "significant financial obligations due," Continental said in the filing with the Securities and Exchange Commission.

"We will have inadequate liquidity to meet those obligations if the current financial environment for network carriers continues and we are unable to increase our revenues or decrease our costs considerably," the airline said.

Continental, which said earlier this month it had lost an average of USD$4 million a day in February, is just the latest airline to indicate a bleak outlook for 2005.