Continental Airlines PRASM Increases 18-19% For August

Continental Airlines, Inc. CAL reported that August consolidated and mainline PRASM increased 18-19% y/y, a shade higher than Deutsche Bank's forecast of a 17-18% increase. Deutsche Bank also points out that although unit revenue for the month was at the high end of the estimate, fuel cost guidance for the September quarter was revised $0.01 higher than previous guidance (now $2.22/gal). Deutsche Bank maintains its EPS forecast, Buy rating, and $34 price target. Continental Airlines, Inc. closed yesterday at $22.34.