Continental Airlines Inc. has reported net loss of $170 million during the fourth quarter. The company relates the loss to fuel- hedging, pension and settlement costs. The loss has been reported despite an increase in the company revenues.

Continental, which is the fourth biggest U. S. carrier said that its fourth-quarter net loss increased to $266 million, or $2.33 per share as compared to $32 million, or 33 cents per share last year.

It is believed that bankrupt Lehman Brothers Holdings Inc. was the counterparty for a large part of Continental's hedging contracts. However, Continental did not confirm Lehman as the counterparty.It clarified that at the time it had ended all contracts with what it called a "bankrupt counterparty."

Continental and other U. S. carriers have been cutting capacity to get rid of unprofitable flights. The decision has come in wake of the decrease in expenditure like vacations and travel by the consumers.

Other companies that reported losses due to high fuel include Delta Air Lines Inc. (DAL) and Southwest Airlines Co.