Continental Airlines said that it did not expect to post a Q2 profit. Shares in the US airline industry fell between 3.3% and 7% on the news. CAL is apparently a bellweather for the airline sector.
It said that RPK (yields) fell 6 - 8% on the last FY. Traffic fell 8%.
United Airlines - a Star Alliance Member - also reported that in May, traffic fell 13.9%.
Merrill Lynch revised the airline sector's estimates to a loss of $4.3 billion from a previously forecast $3.2 billion. IATA estimates a $6 billion for this FY.
More information at the Financial Times website