JETS ETF Cruising Higher: 5 US Airline Stocks Gaining Altitude In June With Room To Climb

U.S. airline stocks rocketed in June, with the U.S. Global Jets Exchange Traded Fund JETS demonstrating one of the highest quarterly returns among equity industry benchmarks.

A 4.5% increase on Tuesday, June 27 marked the biggest trading day for JETS since January 2023, pushing the ETF close to its 2023 highs, which were previously reached in February.

JETS is up 15.4% in the past month, three times the SPDR S&P 500 ETF Trust’s SPY 4.5% gain.

However, despite the recent strong performance, the ETF that tracks stocks in the aviation industry still has more than 50% upside potential to catch up to pre-Covid-19 levels.

Chart: JETS ETF Takes Off in June, But Remains Well Below Pre-Covid Heights

JETS ETF: Performance Contribution In June

The JETS ETF is a highly concentrated ETF, with four airline companies accounting for up to 45% of the fund’s total holdings.

Let’s take a look at the stocks that are propelling the aviation industry forward in June.

Delta Airlines, Inc. DAL: Delta has gained 28% over the past month, adding 2.8% to the ETF’s overall performance.
Delta hosted an investor day presentation on Tuesday, with executives describing a “constructive industry backdrop” emphasizing unsatisfied travel demand. Delta increased its free cash flow expectation for 2023 from $2 billion to $3 billion and also boosted its revenue forecast for the June quarter. To return to its end-of-2019 levels, DAL has to rise by 35% from its current price of $46.
American Airlines Group Inc. AAL: American Airlines has soared 21% over the last month, contributing 2% to the JETS’ monthly performance. A 70% upside potential currently separates AAL from its December 2019 levels.
Southwest Airlines Co. LUV: Southwest Airlines posted a 19% performance for the past month, adding 2% to the ETF return. To return to its pre-Covid levels, LUV must experience a 65% increase.
United Airlines Holdings, Inc. UAL: United Airlines rose 18.6% in the last month, adding 1.8% to the JETS’ monthly performance. UAL has to rise by at least 60% to reach its pre-Covid levels.