Continental Slides Despite Signs of Progress

The airline industry's halting progress continued Tuesday.

Continental Airlines(CAL Quote) said it would post "significant" losses in the first quarter and expressed concerns about its second quarter, while noting that it turned cash-flow positive last month. The company's comments came as investors sold stocks in general and airline issues in particular on another day devoted to watching Middle East tensions increase.

"Based on current fuel price and revenue trends, the company's ability to reach profitability in the second quarter will be challenging," Contintental said in a statement. ...