UAL Corp will pursue all options to ensure future

PHILADELPHIA (Reuters) - The parent of United Airlines, which held unsuccessful merger talks with Continental Airlines Inc (CAL.N: Quote, Profile, Research, Stock Buzz), said on Sunday it would pursue all options to ensure a sustainable future.

"Ensuring you have the right partner is everything," UAL Corp said in a statement. "We will pursue all options to ensure a strong, sustainable future for our airline and will not shy away from the tough choices necessary to create value for our shareholders."

Earlier on Sunday, Continental said it had decided against merging with any other airline at this time but will explore alliances with other carriers.

Continental had called off talks with United due to the other carrier's weak financial condition, and "the increasing cost of oil increases the risk of doing an airline merger," a source briefed on the matter told Reuters on Sunday.

(Reporting by Jessica Hall; Editing by Tomasz Janowski)

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