Airlines ETF Monthly Report | December

Airlines ETFKey Takeaways | December

According to a recent report from Jeffries three of the major U.S. airlines (American Delta and United) spent $2.2 billion on maintenance in the third quarter of this year. That is a 45% increase from the same period in 2019. This is due to discretionary maintenance older aircraft and general inflationary pressures.

United Airlines was anticipating its busiest Thanksgiving ever reports Simple Flying with almost 6 million people expected to fly with the airline during the holiday travel period. United added over 550000 seats to meet the increased demand and will operate an average of 3900 flights per day.

The International Air Transport Association (IATA) announced that the strong post-pandemic passenger traffic trend continued in September. “The third quarter of 2023 ended on a high note with record domestic passenger demand for the month of September and continued strong international traffic” said Willie Walsh IATA’s Director General.

Macro Outlook

Airlines have seen a drop in bookings in the weeks following the start of Israel’s war against Hamas in the Gaza Strip and some expect it to cut into their future profits reports CNBC. According to travel analytics firm ForwardKeys international flight bookings were 20% below 2019 levels in the three weeks after the attack by the Palestinian militant group Hamas against Israel on Oct. 7 and 5 percentage points below the period of three weeks before the attack.

Ryanair Holdings Plc announced this month that it will pay out a dividend of $430 million and plans to hand over about a quarter of annual profit to shareholders reports Bloomberg as Europe’s biggest discount airline benefits from growing traffic. Ryanair also said that it might pay out special dividends and institute stock buybacks in the future.

Demand for international travel is at record highs in the US according to a consumer survey conducted by the Conference Board reports Yahoo! Finance despite lingering conflict in Ukraine and burgeoning conflict between Israel and Hamas. I think it’s going to continue to stay strong Delta CEO Ed Bastian said. Some of the risks around European travel into the next year I’d say is something that we’re guarded around. But we’re not seeing any reductions in anticipated travel.

Sources available upon request. Past performance is not indicative of future performance and when you invest in ETFs your capital is at risk.

Airlines ETFPerformance
As of 30.11.2023

1M

3M

6M

YTD

12M

2Y

SI

U.S. Global Jets UCITS ETF

12.91%

-12.59%

-8.02%

-1.80%

-10.47%

-16.60%

-34.69%

U.S. Global Jets Index

12.91%

-12.51%

-7.65%

-1.15%

-9.89%

-15.79%

-33.80%

Please note that all performance figures are showing net data. Source: Bloomberg / HANetf. Data as of 30/11/2023.Performance before inception is based on back tested data. Back tested data does not represent actual performance and should not be interpreted as an indication of actual or future performance. Past performance for the index is in USD. Past performance is not an indicator for future results and should not be the sole factor of consideration when selecting a product. Investors should read the prospectus of the Issuer (“Prospectus”) before investing and should refer to the section of the Prospectus entitled &lsquoRisk Factors’ for further details of risks associated with an investment in this product. When you invest in ETFs and ETCs your capital is at risk.