During the month of July, Chicago-based United Airlines announced that it would repurchase $3 billion worth of its own shares. The U.S. Global Jets ETF (JETS), which owns United as one of its top four holdings, reacted to the news by moving up nearly 2 percent on the day of the statement, July 23.
There has been a recent trend of buybacks in the airline industry as Delta Airlines similarly announced it plans “$6 billion in new stock buybacks and added dividends through 2017.”
Article summary written by U.S. Global Investors.