Continental Airlines to receive $413 million for extended credit card deal with Chase

: Continental Airlines Inc. said Thursday it will acquire a $413 million initial payment under its cobranded recognition card trade with Pursuit Depository Financial Institution USA, adding to the carrier's hard cash shock absorber as it set ups to book rupture and other complaints in the approaching months.

The understanding with Pursuit widens the recognition card trade through the end of 2016, Houston-based Continental said in a filing with the Securities and Exchange Commission. Of the initial payment, $235 million screens the progress purchase of frequent circular milage credits.

Continental said it anticipates to have got between $3.2 billion and $3.3 billion on manus at the end of the 2nd quarter.

Including combustible taxations and hedges, the bearer predicted it will pass an norm of $3.45 per gallon on combustible this year, and a penny more per gallon during the 2nd quarter.

Airlines attempt to come in into hedge contracts ahead of clip to lock in more than advantageous rates for the future, but doing so have grown increasingly hard as the cost of combustible have soared in recent months. Today in Business with Reuters

For this quarter, Continental said it have about 20 percentage of its combustible necessitates hedged. The air hose have about 43 percentage of its combustible necessitates hedged in the 3rd quarter, and 48 percentage in the 4th quarter. Those hedgerows could be valuable if oil terms rise sharply in the 2nd one-half of the twelvemonth — the greatest stakes are on petroleum oil trading between about $120 and $140 a gun barrel in the 2nd one-half of the year.

Early Thursday, visible light sweet, petroleum for July bringing was down $1.75 in electronic trading on the New House Of York Mercantile Exchange to merchandise at $134.45.

The bearer reiterated programs to cut 3,000 jobs, but did not spell out which places would be lost. The expected occupation cuts stand for about 6.5 percentage of the company's work military unit of 45,000.

Continental last hebdomad said it would cut down capacity by 11 percent, and retire 67 Boeing 737-300 and 737-500 airplanes by the end of 2009.

The retrenchment is expected to ensue in potentially big accounting complaints related to airplanes and trim parts, rupture costs, contract expiration costs and other expenses. Continental said Thursday it "is not able at this clip to gauge the amount and timing of these charges."

For the adjacent six weeks, Continental said it is "comfortable" with its forward engagements and anticipates demand will "remain solid throughout the summer."

While domestic and Latin American engagements over the adjacent six hebdomads are running higher than at this clip last year, trans-Atlantic engagements are down 2 to 3 per centum points and bookings to Asia are running 4 to 5 points behind last year. Net Income borders are typically wider on international paths than on domestic ones.

Continental Airlines shares rose 80 cents, or 6.7 percent, to $12.90 in morning time trading.