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Citi expects potential US rate cuts to influence travel demand



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** Citi expects U.S. Federal Reserve's potential interest-rate cuts to cause change in consumer demand for U.S. airlines

** Travel demand could see a boost if looser credit acts to be stimulative for consumers, brokerage says

** Citi sees lower net interest expenses to potentially help earnings before tax (EBT) for airlines

** Lower net interest expenses could help JetBlue JBLU.O and American Airlines AAL.O more compared with others because of their "levered balance sheets," Citi says

** Expects dividend payers such as Delta Air DAL.N to become more attractive to investors as fixed income yields decline with Fed's rate cuts

** YTD, S&P 500 passenger airlines index down 3.6%



Reporting by Shivansh Tiwary in Bengaluru

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