BofA/ML Raises Earnings Estimates on Airlines

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Analysts at Bank of America/ML raised its earning estimates on airlines this week, increasing them by 10 to 30 percent. Their estimates assume that there will not be a recession in the US, and account for a 10 percent rebound in oil prices. The industry is benefiting from lower costs related to declining jet fuel prices.

BofA's top pick is Delta Airlines (NYSE: DAL). It also likes Alaska Air Group, Inc (NYSE: ALK), Westject, US Airways Group, Inc. (NYSE: LCC), JetBlue Airways Corporation (Nasdaq: JBLU) and Hawaiian Holdings Inc. (Nasdaq: HA).

Investors who are bullish on this sector can also purchase shares of Guggenheim Airline ETF (NYSE: FAA). FAA is lower by 4 percent in the past 30 days, but higher by 10 percent so far this year.

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