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$JETS - Recovery of the Airline Industry

Long
AMEX:JETS   U.S. Global Jets ETF
“The U.S. Global Jets ETF $JETS provides investors access to the global airline industry, including airline operators and manufacturers from all over the world.”

TECHNICALS

$JETS is currently trading at $25.50 which is 13% below their most recent high of $28.98 which was made in March 2021. The stock has been in an upward trend since October 2020 as a result of increased vaccinations around the world and strong guidance. As seen on the chart, between 2017 and early 2020 $JETS established a strong support zone between $27.50 and $28.50. With travel expected to increase into the summer and vaccinations continue to be rolled out, $JETS can potentially see a 10% move and settle between $27.50 and $28.50 in the coming months.


RECOVERY

Based on their most recent earnings reports, airline companies such as $AAL, $DAL, $LUV, and $UAL have all posted that their revenue is up 100% or more from their pandemic lows. Although revenue is sitting around 50% of pre-pandemic levels, the growing number suggests that the industry is recovering.


RISKS

The greatest risk to the travel industry at the moment is the massive increase in covid cases in India and the emergence of the new covid variant B.1.617. Although much more information is needed, the new variant appears to be spreading at a much faster rate than before and it is unknown if vaccines will help prevent the contraction of the virus.

Anthony, OptionsSwing Analyst

Comments

How will this inflation I keep hearing about affect the airline industry?
Reply
Thanks 🙏🏻 Well explained and great knowledge.
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