Airlines with leveraged balance sheets and volatile earnings are rarely treated as long-term investments. They trade at low multiples for a reason. What makes Bank of America’s latest view stand out is that it does not rely on a cyclical rebound or improved sentiment, but on a structural shift in earnings power that is only beginning to surface in reported numbers.

According to the bank’s analysts, 2026 represents an inflection point. Operational normalisation, the full realisation of integration synergies, and the return of operating leverage are converging. The narrative moves away from survival mode toward optimisation—creating the conditions for a meaningful re-rating rather than a temporary bounce.

Top points of the analysis

• Bank of America sees price growth potential of around 27% for the selected title.

• The main catalyst is a turnaround in profitability and strong upward EPS revisions.

• Acquisition integration and return of operating leverage improve margins.

• Valuation still does not…