UPDATE 1-Continental Airlines posts profit on higher fares

* Excluding items, Continental posts $1.60/shr profit

* Revenue rose 18.6 pct; mainline fares jump 16.3 pct

NEW YORK, July 22 (BestGrowthStock) – Continental Airlines (CAL.N: ),
which is being bought by United Airlines, posted a
second-quarter profit (Read more your timing to make a profit.) on Thursday helped by higher air fares
and trimmed capacity.

Continental posted net income of $233 million, or $1.46 per
share, compared with a net loss of $213 million or $1.72 per
share a year earlier.

Excluding $24 million of merger-related costs and other
charges, Continental reported a profit of $1.60 per share.

Revenue rose 18.6 percent to $3.7 billion. Fares on flights
Continental flies jumped 16.3 percent in the quarter.

Earlier this year, United, a unit of UAL Corp (UAUA.O: ),
said it would buy Continental in an all-stock deal to create
the world’s largest airline. The companies expect to close the
deal in the fourth quarter of 2010.

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(Reporting by Deepa Seetharaman; Editing by Derek Caney)

UPDATE 1-Continental Airlines posts profit on higher fares