Continental Airlines

Continental Airlines

Another and another and another! CAL continues to add international flights. World wide business demand for air travel is very strong. The list of "highly profitable" new flights is growing. Highly profitable is in quotes because in total, CAL will barely scrape up a small profit for the third quarter. Considering the price of oil the past couple of months, this has been a remarkable accomplishment.

When cyclical businesses finally make the turn, the standing players usually do quite well for many years thereafter. I see 4 or 5 great years ahead for CAL , AMR and LCC. The action for the past several sessions have been neat. The indexes have fallen but CAL , AMR and LCC have enjoyed nice moves; perhaps too much too fast but then again, CAL hit $16 not long ago. It could be back at $16 pretty quick.