Airlines ETF Report | March 2024

Airlines ETF Key Takeaways

The head of the U.S. Federal Aviation Administration told Congress in a letter on 5th February that lawmakers should not raise the mandatory retirement age of airline pilots to 67 from 65, saying it should first be allowed to conduct additional research, writes Reuters. “When it comes to raising the pilot retirement age, the FAA has made clear that a scientific and safety analysis must come first. That has not happened,” said Senator Maria Cantwell, the committee chair. “Aviation safety is paramount, and now is not the time to take a shortcut.”

All major international route areas expanded in 2023 on a year-on-year basis, reports the IATA. International passenger traffic saw a significant resurgence, with global Revenue Passenger Kilometers (RPKs) soaring by 42% over the previous year. This marked tremendous progress toward full recovery, reaching 89% of pre-pandemic levels despite the numerous challenges faced by airlines, such as labour shortages, supply chain constraints, high inflation, and geopolitical tensions.

Shares of JetBlue Airways gained double digits on February 12, following a stake-related disclosure by activist investor Carl Icahn, reports Yahoo! Finance. Per an SEC filing, Icahn currently has 9.91% stake in JetBlue, the article explains. Justifying his decision to buy a stake in the low-cost carrier, Icahn said that he believed JBLU shares were undervalued and represented an “attractive investment opportunity.”

Macro Outlook

13th February 2024 will be remembered as the day flight attendants from three different unions held a nationwide picket, writes Simple Flying. Members of TWU 556, the Association of Professional Flight Attendants representing American Airlines flight attendants, and the Association of Flight Attendants representing nearly 50,000 flight attendants at 19 airlines, gathered across the United States to demand better pay and conditions.

American Airlines has raised the price to check a bag for the first time in more than five years, reports CNBC, and said it would limit which travel agency bookings are eligible to earn frequent flyer miles. “Our cost of transporting bags is significantly higher” over the past few years, said Scott Chandler, American’s senior vice president of revenue management and loyalty. “Fuel is a big component of it.”

The global share of air cargo transported on dedicated freighters is slowly coming down, writes the IATA. The balance between dedicated freighters and passenger bellies will likely continue to shift in response to changing market dynamics.

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 29.02.2024

1M3M6MYTD12M3YSI
U.S. Global Jets UCITS ETF7.67%20.38%5.22%5.85%2.24%nan%-21.38%
U.S. Global Jets Index7.80%20.57%5.49%5.96%3.04%-21.11%-20.18%

Please note that all performance figures are showing net data. Source: Bloomberg / HANetf. Data as of 29/02/2024. 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.

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