Deutsche Bank upgraded Air France-KLM, International Consolidated Airlines Group and Deutsche Lufthansa to hold from buy, and said the German airline was its top pick. While airlines will lose money in Q1, profits are expected to increase in Q2 and beyond, with Deutsche Bank forecasting a much quicker recovery in network airline profits than before. The analysts predict that yields, or average fares, will remain 20% above pre-Covid levels for the first nine months of the year, before softening in Q4, while fuel costs will come down as jet fuel in the spot market has dropped and the euro has increased in value. However, they do acknowledge that non-fuel unit cost targets will be tough to meet, owing to disruptions at airports, air-traffic control issues and potential labor union activities. Deutsche Bank has hiked its new operating profit estimates for the year by 32% at Lufthansa, by 7% at Air France-KLM and by 16% at IAG.