The aviation sector has been flying in turbulent skies recently, thanks to heightened oil price volatility. With Brent crude oil prices slipping below $70 per barrel on March 6, followed by a sharp rebound on March 7, airline stocks and sector-focused ETFs have been on a rollercoaster ride. Investors are keeping a close watch on energy costs, a key component of airline operations, and how they impact the broader aviation market.

U.S. Global Jets ETF (NYSE:JETS) – Down 1.05% at the time of publication Friday.

The fund is one of the most popular aviation ETFs, offering exposure to major airlines, aircraft manufacturers, and airport operators. The fund holds stocks from global carriers such as Delta Air Lines (NYSE:DAL), American Airlines (NASDAQ:AAL), and Southwest Airlines (NYSE:LUV). While JETS has struggled amid oil price fluctuations, its diversified approach provides investors with broad exposure to the airline industry.

iShares Transportation Average ETF (BATS:IYT) – Up 0.66% at the time of publication Friday.

While not solely focused on airlines, the iShares Transportation Average ETF includes a significant allocation to aviation stocks alongside railroads, trucking, and logistics firms. Given the importance of fuel costs across the transportation sector, IYT's performance is closely linked to oil price movements, making it an interesting choice for investors looking for a broader transportation play.

SPDR S&P Transportation ETF (NYSE:XTN) – Up 0.08% at the time of publication Friday.

This fund tracks an equal-weighted index of U.S. transportation stocks, including airlines, railroads, and shipping companies. This ETF offers a more balanced approach compared to JETS, which is heavily weighted toward major airlines. As a result, XTN may offer a smoother ride for investors during periods of oil price volatility.

U.S. airline stocks tumbled again on Tuesday, hitting their lowest levels since late last year following data indicating economic concerns. United Airlines (NASDAQ:UAL), which has the highest exposure to China among U.S. airlines, fell about 6%, along with Delta Air Lines. American Airlines dropped close to 4%, while domestic-focused carriers such as JetBlue Airways lost nearly 6% on Tuesday.

Airlines, particularly full-service carriers with extensive international networks, had been performing well due to strong demand and moderating domestic flight growth. However, some analysts now anticipate potential demand impacts, particularly for price-sensitive customers ahead of the crucial spring travel season, according to CNBC. Adding to the concerns, U.S. consumer spending fell in January for the first time in nearly two years, as per the U.S. Commerce Department.