) issued new 3Q10 guidance. Capacity discipline continues to be the name of the game in the airline industry. Revenues continue to improve, but are not back to 2008 levels yet. The Continental/United merger is still expected to close on Oct 1. Dahlman is now forecasting EPS of $1.93 up from its prior estimate of $1.22. the current consensus estimate is $1.89, which is likely to come closer to Dalhlman's estimate given the new guidance. Going into the 4Q, forward bookings continue to be strong at Continental, although the stock should remain range bound until the merger is complete. Risks include high fuel costs, the economy, credit card processing fees, liquidity, fares, labor, and insurance costs to name a few. Continental closed Wednesday at $23.79