Categorized | News, Non-Alcoholic, Spirits

Continental Airlines tie in with Red Bull and Diageo to offer in-flight cocktails

Continental Airlines has said that it will begin selling “specialty cocktails” on its flights, the latest option to pay for in-flight goods or services as the airline industry looks to eke out revenue from its customers.

Continental said it has partnered with Stirrings, a cocktail-mixer brand, to offer its mojito and pomegranate martini, and the carrier also teamed with Red Bull to offer the energy drink. All three are offered with alcohol for $9 apiece or without for $3.

Airline companies, which struggled mightily during the recession, have looked for ways to squeeze additional revenue out of travelers–from implementing fees for checked baggage to having passengers pay for the use of pillows and blankets. On Monday, the U.S. Department of Transportation said U.S. airlines’ first-quarter ancillary revenue dropped 1% from a year earlier on reduced reservation-change fees and a decline in miscellaneous revenue.

In April, Continental–which is planning a merger with UAL Corp.’s (UAUA) United Airlines–said in April that its first-quarter loss widened by more than analysts had expected despite revenue gains as bad weather, higher fuel costs and slower-than-hoped economic improvement all hit its bottom line.

Shares of Continental were recently up 4.8% to $22.34 amid a broader airline-industry stock rally. Continental stock has climbed 25% in value so far this year.

-By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@dowjones.com;

Saturday, June 24, 8:56 pm

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