Six Picks In The Airline Sector 10.04.04, 2:07 PM ET Tear Sheet | Chart | News Credit Suisse First Boston maintained an "outperform" rating and $19 target price on Continental Airlines (nyse: CAL - news - people ), citing the company's better-than-expected September revenue. Continental reported unit revenue dropped 1% to 2% on mainline capacity that was 6.8% higher. The carrier's load factor rose 2.9%, beating CSFB's expectation of a 1.3% rise. "We keep in mind that the results come in against tough year-ago comparisons due to the security surcharge holiday in effect from June to September," the research firm said. The Pacific region posted a 5.9% increase in load factor on a 1.1% decline in capacity. Transatlantic load factor rose 1.3% on a 24.5% increase in capacity while Latin America rose 1.9% on 10.8% more capacity. Domestic traffic rose 5.6% on a 1.3% increase in capacity. "Airline stocks continue to face one of the most difficult operating environments ever, as the combination of high crude prices, rising kerojet refining margins and a weak revenue environment weighs on stocks," CSFB said. "While the situation is severe, we find it difficult to believe that the current combination of high fuel prices and excess capacity can coexist for many more quarters, and are more interested in accumulating the shares at this point than anything." The research firm said its top picks in the airlines sector are: AMR (nyse: AMR - news - people ), rated "outperform" with a $22 target price; Alaska Air Group (nyse: ALK - news - people ), rated "outperform" with a $35 target; Northwest Airlines (nasdaq: NWAC - news - people ), rated "outperform" with a $16 target; America West Holdings (nyse: AWA - news - people ), rated "outperform" with a $17 target; and Southwest Airlines (nyse: LUV - news - people ), rated "outperform" with a $20 target. Roger EWROPS