In early January 2022, many commercial flights were cancelled due to weather and pandemic-related disruptions. As reported by the NY Times, storms disrupted flights by delivering whipping winds, rains and heavy snowfall at airports nationwide, and the fast-spreading Omicron coronavirus variant compounded the havoc by sickening thousands of airline workers. In fact, in a single day during the holidays, nearly one-third of United Airlines employees called out sick at Newark Liberty International Airport. [1]
The IATA reported November 2021 numbers for numerous international markets in January 2022. For European carriers, November international traffic declined 43.7% versus November 2019, but much improved compared to the 49.4% decrease in October versus the same month in 2019. Latin American airlines saw a 47.2% drop in November traffic, compared to same month in 2019, a marked upturn over the 54.6% decline in October compared to October 2019. [2]
One of the top holdings in the JETS Airlines ETF, Delta Air Lines in January 2022, reported for the fourth quarter and for 2021, and results, while certainly not at pre-pandemic levels, were nevertheless much better than expected. Delta reported sales of $9.47 billion during the quarter, beating expectations for $9.21 billion. For the full year, it reported $280 million in profit, compared to a loss of $12.4 billion for the previous year.[3]
Please note that all performance figures are showing net data.
Macro Outlook
From December 24, 2021, through January 4, 2022, more than 20,000 flights were cancelled worldwide, reports ETF Trends, which, in theory, should mean lost revenue and profits. However, Moody’s Investors Services sees limited financial strain for carriers stemming from the recent spate of cancellations. “Our global outlook for passenger airlines remains positive, despite recent events. We expect passenger volumes to snap back strongly through 2022 and 2023, which drives our positive industry outlook,” Moody’s reports. [4]
Announced on January 18, 2022, British flag carrier British Airways has resumed flights to Johannesburg with the Airbus A380. The airline resumed long-haul flights with its largest aircraft just over a month ago, reports SimpleFlying. While the Omicron variant had looked set to derail the airline’s plan to send the giant of the skies to South Africa’s largest city, the article continues, all eventually went to plan. [5]
Boeing Co, a holding in the JETS Airlines ETF, announced on January 24, that it is investing a further $450 million in Wisk Aero to support development of future pilotless flying taxis, reports Reuters. Wisk is California-based and owned by Boeing and Kitty Hawk (the air vehicle firm launched by Google co-founder Larry Page) and is one of dozens of electric vertical takeoff and landing (eVTOL) makers but differs in focusing its efforts on autonomous flight. [6]
U.S. Global Jets UCITS ETF Performance Table (As of 31.01.2022)
|
|
1M
|
3M
|
6M
|
YTD
|
12M
|
SI
|
|
U.S. Global Jets UCITS ETF (Acc)
|
0.50%
|
-4.13%
|
-7.01%
|
0.50%
|
NA
|
-17.50%
|
|
U.S. Global Jets Index
|
0.70%
|
-3.87%
|
-6.50%
|
0.70%
|
-27.59%
|
-17.06%
|
Please note that all performance figures are showing net data. Source: Bloomberg / HANetf. Data as of 31/01/2022Performance 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. Please note that all performance figures are showing net data.
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