Airlines ETF Monthly Report: Key Takeaways
The U.K. ended its COVID travel restrictions at the start of February, scrapping the requirement for 2-day antigen tests. This is the first time no testing has been required since early 2020, which should boost U.K. bookings. France also lifted most of its restrictions for vaccinated travellers at the start of February. [1]
The Federal Aviation Administration announced progress in expanding 5G service at airports. Last week the FAA announced that it came to an agreement with Verizon and AT&T on how to allow more aircraft to safely use key airports while also enabling more towers to deploy the new 5G service. [2]
Online travel firms and commercial airlines are set to reap the benefits of governments lifting travel restrictions, especially following new research showing that the European Union’s (EU) efforts had little impact on controlling new infections. A December-January study of Italy and Finland’s pre-departure testing measures found that they were completely “ineffective at preventing the spread of Omicron.” [3]
Macro Outlook
Financial leaders at U.S. companies say business travel is likely to boom by the end of 2022, reports Business Traveller. A poll from SAP Concur, over half of the finance managers surveyed say it’s very or extremely likely that their industry will see a substantial increase in business travel by year-end. Business travellers themselves are even more positive, with 73 percent saying an increase is very likely this year. [4]
A group representing international airlines has urged to end the mandated 14-day quarantine for unvaccinated travellers, reports Travel Daily Media. The Board of Airline Representatives of Australia (BARA), which represents 34 airlines that comprise 90% of Australia’s international flights, are urging the government to “evaluate the need” for hotel quarantine. [5]
Travel and tourism in the U.S. will outpace pre-pandemic levels this year, with the sector projected to generate $2 trillion, or 6% more than it did in 2019. That’s according to new economic modelling by the World Travel & Tourism Council (WTTC), working with Oxford Economics. This year’s recovery is dependent on two conditions: 1) steady vaccine rollout and 2) the lifting of international travel restrictions. [6]
Airlines ETF Performance Table (As of 28.02.2022)
|
|
1M
|
3M
|
6M
|
YTD
|
12M
|
SI
|
|
U.S. Global Jets UCITS ETF (Acc)
|
1.20%
|
6.61%
|
-6.28%
|
1.70%
|
NA
|
-16.52%
|
|
U.S. Global Jets Index
|
1.21%
|
6.78%
|
-5.83%
|
1.93%
|
-17.03%
|
-16.05%
|
Please note that all performance figures are showing net data. Source: Bloomberg / HANetf. Data as of 28/02/2022. 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. Please note that all performance figures are showing net data.
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