Monthly Airlines ETF Report | February

Airlines ETF Key Takeaways

Shares of Spirit Airlines fell on January 17 by 10%, a day after a U.S. judge blocked the airline’s planned $3.8 billion merger with rival JetBlue Airways, reports Reuters. The federal judge agreed with the U.S. Department of Justice that the airline’s deal with JetBlue would harm ticket buyers. “We believe this is a positive for JetBlue as business at Spirit turned negative between the time the merger was announced to now,” TD Cowen analyst Helane Becker wrote in a note.

China’s international air travel market will extend its recovery, reports Bloomberg, with the nation’s aviation regulator expecting the number of weekly flights to hit about 80% of the pre-Covid level by the end of the year. Weekly international passenger flights may increase to 6,000 by the end of 2024, from more than 4,600 currently, the Civil Aviation Administration of China said in a statement following its annual work meeting.

Delta Air Lines earned $2 billion in the fourth quarter, posted record full-year revenue, and says it is buying more planes to boost its international flying, writes ABC News. However, the company did pull back on its profit forecast for 2024, saying full-year earnings will be $6 to $7 a share, which is lower than an earlier prediction of over $7 per share.

Macro Outlook

Global business travel is forecast to fully recover by 2024, reports Zacks Research, with spending expected to reach $1.48 trillion, slightly above the pre-pandemic levels of 2019, according to the Global Business Travel Association. This recovery, however, has its share of risks, including COVID-related disruptions, supply-chain strains, labour shortages, and increased costs.

India’s travel industry could continue to witness growth in 2024. The country has emerged as the largest source market for outbound travellers in Asia in 2022, surpassing China, South Korea, and Japan, reports Trade.gov this month. The latest report published at ITB Berlin 2024 indicates an impressive year-on-year rise of 190% for Indian outbound travellers, a sharp recovery from the depths of the COVID-19 pandemic.

United Airlines shares rose around 4% on January 23 after the Company reported higher-than-expected earnings and revenue for the fourth quarter, reports CNBC. The carrier hit its full-year adjusted earnings target of between $10 and $12 a share in 2023 and said bookings so far in 2024 have been solid.

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

Airlines ETF Performance
As of 31.01.2024

1M3M6MYTD12M2YSI
U.S. Global Jets UCITS ETF-1.69%26.24%-12.26%-1.69%-7.17%-11.49%-26.98%
U.S. Global Jets Index-1.71%26.29%-12.06%-1.71%-6.57%-10.73%-25.96%

Please note that all performance figures are showing net data. Source: Bloomberg / HANetf. Data as of 31/01/2024. 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 ‘Risk 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.