Airlines ETF Monthly Report: Key Takeaways
Delta Air Lines, one of the largest holdings in the JETS ETF, announced it will begin paying its flight attendants for their work beginning during the boarding process, writes Bloomberg, a shift from the industry standard (in which their hours begin only when the aircraft doors close). This change will begin June 2 and comes following pay increases that took effect on May 1. [1]
The European Union announced the relaxation of its guidance for mask wearing on flights starting May 16, reports Bloomberg, as many airlines have already abandoned those rules with COVID concerns easing. Wearing face masks at airports and inflight should be aligned with national measures, the European Union Safety Agency said. [2]
In May, the International Air Transport Association (IATA) announced passenger data for the month of March 2022, which demonstrates that the recovery in air travel continues. Total traffic in March was up 76% compared to March 2021. IATA’s Director General Willie Walsh said that although we are seeing the long-expected surge in pent up demand being realized, there are also long delays at any airports with insufficient resources to handle the growing numbers. [3]
Macro Outlook
More and more commercial carriers are increasing flights to Europe. United Airlines, for example, is planning to increase trans-Atlantic capacity 25% this summer compared with 2019, reports CNBC. Despite higher fuel prices and the Ukraine war, United is adding new routes and frequencies, including service to London, Zurich, Munich, Milan and Nice, France. [4]
United Airlines CEO Scott Kirby says that business travel across the Atlantic already exceeds what it saw in 2019, reports Bloomberg. “That business travel is recovering so rapidly makes us feel really, really confident,” Kirby commented. According to the World Travel & Tourism Council, corporate clients typically deliver bigger returns than those packed in coach, spending more than $1 trillion on travel in 2019. [5]
One of the world’s busiest airports, London’s Heathrow International Airport, saw over 5 million passengers during the month of April, and forecasts and estimate of 53 million passengers to be handled this year alone. Despite the promising numbers, writes SimpleFlying, Heathrow is still asking the Civil Aviation Authority to raise its passenger charges by over 56%. [6]
Please remember that when you invest in ETFs, your capital is at risk.
Airlines ETF Performance Table (As of 31.05.2022)
|
|
1M
|
3M
|
6M
|
YTD
|
12M
|
SI
|
|
U.S. Global Jets UCITS ETF (Acc)
|
-4.66%
|
-4.49%
|
1.82%
|
-2.87%
|
NA
|
-20.27%
|
|
U.S. Global Jets Index
|
-4.58%
|
-4.32%
|
2.17%
|
-2.47%
|
-22.45%
|
-19.68%
|
Please note that all performance figures are showing net data. Source: Bloomberg / HANetf. Data as of 31/05/2022. 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.
Learn more about the U.S. Global Jets UCITS ETF