Continental Airlines expects to have at least USD$1.5 billion in cash on hand by the end of the year, its chief executive said on Wednesday.

"We're very well positioned for a successful future," said Lawrence Kellner, adding that he was "comfortable" with a prior forecast of unrestricted cash at USD$1.5 billion by year end.

On Tuesday the company said it expected to end the second quarter with an unrestricted cash and short-term investments balance of between USD$2 billion and USD$2.1 billion.

Airlines typically prosper during the summer travel months then struggle during the autumn and winter when passenger demand wanes.

"That should be an adequate level to get them through the winter," said Ray Neidl, an analyst at Calyon Securities.

The Houston-based airline last week closed on a loan transaction initially worth about USD$300 million secured by its Air Micronesia and Continental Micronesia units, helping to solidify its cash position.

Also during the presentation, Continental Chief Financial Officer Jeff Misner said Continental is still talking to its flight attendants about wage and benefit concessions that would allow it to reach a goal of USD$500 million in cost cuts.

The flight attendants earlier this year were the sole labor group to reject new contracts the airline said it needed to avoid a cash crunch.