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Continental Has USD$22 Mln Gain On Special Items

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Continental Airlines said on Friday it recorded an after-tax gain of USD$22 million in the second quarter reflecting a number of special items.

The company said it recorded a net gain of USD$78 million from the sale of its remaining interest in Copa Airlines, a special tax credit of USD$28 million, and another USD$3 million from the tax effects of special items.

It also recorded a USD$58 million pretax operating charge relating to write downs on aircraft swept up in capacity cuts planned for later this year, and a USD$29 million write down of student loan-related auction rate securities.

Continental anticipates it will record additional accounting charges in the third quarter of 2008 and beyond relating to future costs of capacity cuts.

The carrier was not able to estimate the amount and exact timing of future charges.

(Reuters)