Consequently, Deutsche Bank has raised AAL and DAL to Buy from Hold, “as we think at current levels they represent an attractive entry-point compared to our 12 month price targets.”

Looking ahead, Deutsche Bank believes that energy prices will continue to play a role on the airline industry outlook.

“If sustained, could spell upside for EPS estimates,” Linenberg added.

Oil prices have jumped over 20% in the past week but dipped on Tuesday. Given the current swing, Linenberg argues that any micro and macro concerns have been “more than fully discounted in [airline]share prices.”

U.S. Global Jets ETF

For more information on the airline industry, visit our airlines category.

Max Chen contributed to this article.