DALLAS, Texas - April 22, 2010 - Continental Airlines lost $146 million in the first quarter - a wider loss than analysts expected - as higher fuel costs offset an increase in revenue.

The Houston-based airline said Thursday that revenue rose 7%, a possible sign that travel is slowly recovering from a deep slump.

The average price of a gallon of jet fuel jumped 17%, and Continental joined Delta Air Lines and American Airlines in reporting big first-quarter losses.

The good news for Continental: analysts believe it will make money the rest of this year as travel demand builds, especially on lucrative international routes.

Continental Airlines, Inc. said it lost $1.05 per share in the first quarter. Without severance costs and other one-time write-downs, the loss would have been 98 cents per share.

Analysts, who usually don't include one-time items in their forecasts, expected a loss of 86 cents per share, according to a survey by Thomson Reuters.