Quarterly revenue dropped to $3 billion from $3.57 billion last year, slightly higher than the expected $2.98 billion. CAL saw sales drop across all regions, with the U.S. and trans-Atlantic routes falling the most. CAL saw traffic drop 11.2% compared to a year ago, with empty planes outweighing the flights CAL cut. The company noted that it was helped by dropping fuel prices, as it spent nearly 42% less on fuel compared to a year ago.
Technically, CAL is enjoying a bit of an intermediate-term rally. The stock is riding higher along support of its 10-week moving average, which is on a course for a bullish cross of its 20-week counterpart. If this technical pattern comes to pass, we could see CAL push higher. Watch the $14 level, as it has provided resistance in the past, it could flip roles and act as support if given the chance.
The skies aren't all clear ahead though, as CAL's 10-month moving average is descending into the picture. This trendline has pushed the stock lower since the middle of 2007 and is still in a position to act as resistance. Will this morning's news help CAL continue its current rally and help the stock try to push through this long-term resistance? We shall see.
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