Morgans Financial has elevated its rating for Australian Airlines to "holdings," a move that reflects a growing market optimism regarding the airline's recovery trajectory. This upgrade indicates that the investment firm sees the potential for stability in the face of ongoing economic challenges.

The decision comes as Australian Airlines navigates through fluctuating demand and operational adjustments stemming from the broader market conditions. By assigning a holding rating, Morgans Financial suggests that while there may not be immediate growth prospects, the airline's fundamentals are solid enough to warrant investor interest without indicating a sell-off.