Investors have continued to unwind bearish bets against European airlines over the past month, according to Citi.
The bank published fresh positioning data, drawn from its quantitative team, showing how investors are betting on the sector.
The figures track long positions, where investors profit if shares rise, and short positions, where they profit if shares fall.
Short positions across European airlines were cut notably over the month, Citi said, a sign that pessimism towards the sector is easing.
Ryanair Holdings PLC (LSE:RYA), the Irish low-cost carrier, recorded the most bullish shift over the month.
The airline has now moved close to the zone where most investors hold long positions.
British Airways owner International Consolidated Airlines Group SA (LSE:IAG) remains the most firmly held long position in the sector.
Air France-KLM (OTC:AFLYY) has drifted into what Citi described as investor apathy, attracting neither strong buying nor selling.
easyJet PLC (LSE:EZJ) is still a consensus short, meaning most investors are betting against it, but its positioning continues to improve.
Citi attributed that shift largely to expectations of mergers and acquisitions activity involving the airline.
Hungarian carrier Wizz Air Holdings PLC (AIM:WIZZ) and Germany's Lufthansa both remain consensus shorts.
However, both have seen investors trim their bearish bets over the past week and month.
