Despite the turbulence the airline industry has faced in recent years — from pandemic shutdowns to winter storms to rising fuel prices — the winds may finally be shifting in the industry’s favor, according to a new report from Bank of America (BofA). With fuel costs easing and pricing power returning, there are several reasons to believe now could be an ideal time to reconsider the sector.

BofA points to four key tailwinds that could help the airline industry outperform in the coming months.

Steady TSA throughput despite lower capacity. Data from the Transportation Security Administration (TSA) show flight demand has remained strong, despite airlines reducing their overall capacity. This is crucial because it indicates people are still flying even though airlines are offering fewer seats. Less capacity combined with solid demand is typically a recipe for improved pricing power, which can support earnings. Today, the TSA regularly clears more tha