Chicago ? United Airlines expects to emerge from bankruptcy by year’s end even if its pending application for a $1.6 billion federal loan guarantee is rejected, CEO Glenn Tilton said Friday.

Cash-crunched United believes it qualifies for and urgently needs the government backing, which the Air Transportation Stabilization Board is expected to rule on soon. But Tilton said the carrier’s 18-month restructuring has left it on solid enough footing to finish the reorganization regardless of the verdict.

United is targeting fall for its exit from Chapter 11, though that timing could be in jeopardy if the company doesn’t receive the long-sought loan guarantee.

“I think that the balance of the year would provide us … with sufficient time to complete the restructuring — with or without” the loan guarantee, Tilton told The Associated Press in an interview at United’s headquarters in Elk Grove, Ill.

Tilton declined to discuss any contingency plans if the government backing falls through, but he said the airline’s bankruptcy lenders have strongly endorsed its restructuring steps, and the overhaul has left it “resilient” despite continuing losses.

United’s restructuring moves have included $2.5 billion in annual labor cost reductions, including trimming employee wages and benefits, and extensive aircraft refinancing.

The airline would have posted an operating profit for the second quarter if not for recent jet fuel increases that have added $750 million to its estimated fuel tab for 2004, Tilton said.

“Whatever our fate, the business plan manifested in the application is a resilient business plan,” he said. “When we take that business plan forward to whatever the group of constituents will ultimately be that … take this company out of its restructuring, I think that we have done the work.”

Tilton’s comments come as some analysts voice skepticism that the government will approve United’s application for a loan guarantee, citing the recent losses of large carriers, high fuel costs, pricing pressures from discount carriers and US Airways’ continuing struggles despite the government’s help.

But few think a denial, while painful to United, would drive the airline out of business.

United Airlines CEO Glenn Tilton says he expects to be able to emerge from bankruptcy by year's end. He was pictured Friday at the company's corporate offices in Elk Grove, Ill.

UBS Securities analyst Sam Buttrick said in a note to investors Thursday that an ATSB rejection would simply move United to Plan B, “which would likely entail some combination of a longer stay in the protective custody of bankruptcy and redoubled cost-reduction efforts to achieve a cost structure that would attract market capital and perhaps some modest level of network downsizing.”

Further cuts could put employees’ pension plans at risk, especially in light of some huge looming payment obligations to those funds. Tilton declined to say whether he would consider such a drastic action if the loan guarantee is turned down.

“The only answer I could give you is that the current business plan is, in my view and the view of our banks, our financial advisers and the rating agency that we took the plan to, financeable. I’m focused on that business plan and I’m not focused on anything else.”

Tilton hailed United’s unions for agreeing to revised cutbacks to retirees’ medical and life insurance benefits.

“It’s an example of all of the constituent groups coming to recognize the need,” he said. “This is a balance between something that is unfortunate, unpleasant, but necessary.”

He also said that while its 4-month-old discount carrier Ted has proven successful so far, with planes 87 percent to 89 percent full, United will be “disciplined” about expanding it and will focus first on improvements.