Continental earnings rise on international demand

NEW YORK (Reuters) - Continental Airlines (CAL.N) posted a better-than-expected 15 percent increase in quarterly earnings on Thursday on strong demand for trans-Atlantic and other international flights.

The fourth-largest U.S. carrier by passenger traffic said second-quarter net profit rose to $228 million, or $2.03 per share, from $198 million, or $1.84 per share, in the same period a year ago.

Excluding a one-time charge related to the settlement of a pilot pension plan, Continental posted earnings of $2.10 cents per share, beating Wall Street expectations of $1.84, according to Reuters Estimates.

Operating revenue rose 5.8 percent to $3.71 billion as yield -- a measure of average ticket prices -- rose 1.5 percent and capacity increased 4.7 percent.

Continental shares have fallen about 30 percent since hitting a five-year high of $52.40 on January 17.