Airlines ETF Monthly Report: Key Takeaways
• Air fares are sinking more than usual from their summer peaks in time for fall getaways, reports Yahoo! Money. Senior economist at Hopper, Andrew Heritage, explained that this year’s decline in prices “from the highs of summer is steeper than usual.” Heritage says, “High jet fuel prices and pent-up demand coming out of two depressed summer seasons,” pushed this summer’s airfares during the peak vacation months to abnormal highs. [1]
• Boeing received preliminary U.S. regulatory clearance to restart deliveries of its 787 Dreamliner aircraft, reports Bloomberg, paving the way for the end to a drought that drained cash and dented the plane maker’s reputation for quality. The FAA approved Boeing’s plans to inspect and repair tiny manufacturing flaws in the Dreamliner’s carbon-composite frame. [2]
• A recent survey by McKinsey & Co. shows that Americans still planned a vacation this summer, “no matter what” – even as inflation remains a top concern. Nearly 70% of respondents said they were taking a trip regardless of rising prices, Covid, a potential economic slowdown or other worries. [3]
Macro Outlook
In both passenger and cargo markets, airlines continue to demonstrate resilience in a challenging post-pandemic context, reports the International Air Transport Association (IATA). Following the initial hit of the crisis, domestic passenger markets were the first to rebound since domestic travel faced less uncertainty and fewer constraints than international travel. [4]
Pilots at Lufthansa have rejected a wage offer by Germany’s flagship carrier, and according to union VC, could go on strike anytime. Lufthansa had hoped its latest offer put to the union on Thursday, August 25, would put an end to the dispute but it was not enough to avoid industrial action. [5]
Airlines are playing catch-up to woo luxury travellers, reads one CNBC headline. Dubai’s Emirates airline announced this month an investment of over $2 billion to improve its inflight customer experience, including cabin interior upgrades and new menus – with unlimited caviar. Finnair also launched a new line of premium economy cabins, featuring seats that provide around 50% more space than their economy seats. [6]
Please remember that past performance is not indicative of future performance, and when you invest in ETFs, your capital is at risk.
Airlines ETF Performance Table (As of 31.08.2022)
|
|
1M
|
3M
|
6M
|
YTD
|
12M
|
SI
|
|
U.S. Global Jets UCITS ETF (Acc)
|
-2.67%
|
-16.01%
|
-19.78%
|
-18.42%
|
-24.44%
|
-33.03%
|
|
U.S. Global Jets Index
|
-2.67%
|
-15.89%
|
-19.53%
|
-17.98%
|
-24.22%
|
-32.44%
|
Please note that all performance figures are showing net data. Source: Bloomberg / HANetf. Data as of 31/08/2022. 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