Topic: Oil

Oil prices went through a wild ride at the very start of 2020 due to escalating tensions between the U.S. and Iran. Jet fuel can make up 25 percent of an airline’s total expenses, which does leave the industry somewhat exposed to oil price volatility. However, investors shouldn’t be deterred from investing in airlines. Al … Continued

The price of crude oil began to fall in October and hit the $50 per barrel mark in late November. ETF Trends writes that lower oil prices could be a tailwind for airline stocks, since fuel is one of their largest operating expenses. Many analysts are positive about the industry’s potential growth and have predicted … Continued

During a recent webcast titled “Your One-Way Ticket to Investing in Major Airlines,” U.S. Global Investors CEO Frank Holmes and ETF Trends editor Tom Lydon discussed various factors that could impact the airlines industry in coming months. At the time of the webcast, the airlines industry was expected to have $33.8 billion in net profits … Continued

Projections for the number of seats offered to airline passengers came down in August, helping bolster sentiment according to the Wall Street Journal. Investors had been concerned that offering too many seats would lead to many remaining unfilled, potentially resulting in decreased profits and lower ticket prices. In addition to these updated projections, airlines benefited … Continued

During the second quarter, Berkshire Hathaway increased its stake in Delta Airlines (DAL) and Southwest Airlines (LUV), while decreasing its holdings in American Airlines (AAL) and United Continental Holdings (UAL). While the company stated that these moves “were a response to the 10% limitation” rather than a reflection of its views on the individual securities, … Continued

Although airlines underperformed in the beginning of 2018, improving fundamental factors, like lowering oil prices and the improving U.S. economy, may encourage both business and leisure travel. The airline sector shows relatively cheap valuations and improved dividend-yield growth according to ETF Trends. The U.S. Global Jets ETF (JETS) is the only ETF dedicated exclusively to … Continued