It’s payday for Continental Airlines. The Houston based airline company said Thursday it’ll get a 413 million dollar initial payment under it’s co-branded credit card deal with Chase Bank USA.
The payment will add more cushion as the airline prepares to book severance and other charges in the coming months. Continental says the credit card deal with Chase will extend until 2016. Of the initial payment, 235 million dollars will cover the advance purchase of frequent-flyer-mileage credit cards.
Including fuel taxes and hedges, the carrier predicts to spend an average of $3.45 per gallon on fuel this year, and a penny more per gallon during the second quarter.
Continental also says it expects to have between 3.2 billion and 3.3 billion dollars in cash on hand at the end of the second quarter.