Continental Airlines to receive $413 million for extended credit card deal with Chase

Continental Airlines Inc. said Thursday it will get a $413 million initial payment under its cobranded credit card deal with Chase Bank USA, adding to the carrier's cash cushion as it prepares to book severance and other charges in the coming months.

The agreement with Chase extends the credit card deal through the end of 2016, Houston-based Continental said in a filing with the Securities and Exchange Commission. Of the initial payment, $235 million covers the advance purchase of frequent flyer mileage credits.

Continental said it expects to have between $3.2 billion and $3.3 billion on hand at the end of the second quarter.

Including fuel taxes …