CSFB Raises Outlook for Airlines

A week before the airlines release quarterly results, Credit Suisse First Boston raised its earnings estimates for the industry.

CSFB analyst Jim Higgins raised forecasts above the Wall Street consensus on eight airlines, including bellwether Continental Airlines (CAL Quote), which is the first airline to release earnings, on July 16.

The note comes on the heels of Continental's disappointing release of June revenue data, which fell below CSFB forecasts and indicates that the quarter could be softer from a top-line perspective. But in Higgins' view, the industry is poised for a decent quarter, if only because of cost-cutting. As a result, the analyst raised industrywide estimates 20%. ...