Continental Plans to Trim Seating Capacity

Continental Airlines Inc. said it’s reducing planned growth in its seating capacity for next year to 6% from 9% to prepare for a possible slowing of the U.S. economy. Executives of the Houston-based carrier told analysts at a New York meeting that it would retire aircraft and take fewer new-plane deliveries. Airline stocks rose as Continental’s announcement eased concern that rivals could lose business to a larger Continental or be forced to reduce fares on new Continental routes, analysts said. The airline industry is expected to grow about 5% this year, as carriers add more planes and routes, analysts said, raising some concern that there won’t be enough demand to fill the additional seats. On the NYSE, Continental rose $2, or 4.4%, to close at $47. Boeing shares rose 13 cents to $43.13.