From: Vahe Stepanian < Sent: Wednesday, October 15, 2014 3:25 PM To: [email protected] Cc: Subject: AAL + US Airlines [C] Classification: Confidential Good Morning Jeffrey - quick update on AAL. Recall you currently hold the following position: Please let us know should you wish to hold or add to the position. Separately, Vinit / Nav's team in Lo=don is highlighting US airlines (majors specifically) per the below. To summari=e, they believe selling lm puts to monetize implied volatility around the 60% level is attractive with 3Q earnings on tap and volatility rising across equity markets. Details included below. Thank you, Vahe Forwarded by T=zia Smith/db/dbcom on 10/15/2014 10:46 AM From: Uzair Aqeel/db/II IIPPIPM To: Nay Gupta/db/c Vinit Sah=i/db/ci Date: 10/15/2014 08:38 AM Subject: KCP Capital Markets Ideas - US Airli=es (IJ Classification: For internal use onl= The equity sell-off has left US airlines oversold on a technical basis. We are starting to see interest in getting long the sector given the attrac=ive valuations, particularly as the majors are expected to produce record free cash flow this year. Delta Airlines is=about 20% off from the September high (Source: Bloomberg, Oct-15, 2014) At the same time, the dramatic dr=p in oil prices will eventually feed into improved margins. Indeed, this is one of the few US sectors that actually benefit from lower oil prices. =ont> WTI crude oil is =own almost 25% since the June peak (Source: Bloomberg, Oct-15, 2014) EFTA_R1_01775638 EFTA02592627