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Airline Stocks Appear to “Take Off” As Travel Gains Altitude

from Seeking Alpha March 23, 2021
Airline Stocks Appear to “Take Off” As Travel Gains Altitude

As vaccinations ramp up, the U.S. Global Jets ETF (JETS) has benefitted. JETS is an airline-focused fund with 39 holdings in global airline stocks. Air travel was decimated due to the pandemic, but as more people are vaccinated there is a greater feeling of safety of traveling and not contracting the virus.

In a Seeking Alpha article, editor Jason Capul highlights JETS’s rising NAV over the past six months and strong inflows of funds. “JETS is the only true air travel-based exchange traded fund” and has outperformed the S&P 500 for the six months ended March 15. JETS’ assets under management (AUM) rose to over $4 billion as more investors bet on airline stocks and the global travel recovery.

Capul attributes some of the recent strong performance in JETS to its number one holding, Southwest Airlines, which said March’s operating revenue was better than expected. “The company has continued to experience an improvement in leisure passenger bookings with beach and other nature-inspired destinations continuing to outperform other regions,” Southwest said in a statement.

Read the latest JETS updates in this press release.

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U.S. Global Investors has authored and is responsible for the summary on this page. All opinions expressed and data provided are subject to change without notice. Opinions are not guaranteed and should not be considered investment advice. The outbreak of the COVID-19 pandemic and the resulting actions to control or slow the spread has had a significant detrimental effect on the global and domestic economies, financial markets and industries, including airlines. U.S. Global Investors continues to monitor the impact of COVID-19, but it is too early to determine the full impact this virus may have on commercial aviation. Should this emerging macro-economic risk continue for an extended period, there could be an adverse material financial impact to the U.S. Global Jets ETF. The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies.