S&P: Continental Airlines unchanged

Standard & Poor's said Continental Airlines Inc. (B/negative/B-3) reported an encouraging $100 million net profit for the second quarter.

Even so, S&P said the company expects a "substantial" full-year loss, due largely to high fuel prices and management noted that the airline "still has a ways to go" to reach full-year breakeven results.

The agency said its ratings and outlook on Continental are not affected.

Continental benefited from stronger revenues generated by its international operations and from domestic operations, which reported slightly improved pricing for the first time in awhile, the agency noted.

Unfortunately, fare increases achieved in the domestic market were insufficient to offset 49% higher fuel costs, S&P added.

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