Airline ETF Poised for Rebound, But... | ETF Trends

The airline exchange traded fund (ETF) Guggenheim Airline (NYSEArca: FAA) could see some take off this year on continually improving passenger demand. But will high gas prices send it skidding off the runway?

The Federal Aviation Administration released its annual travel forecast on Tuesday, a report that covers the next 20 years. In 2011 alone, airline travel is expected to go up to 3.5%. [Blizzard 2010: Will the Airline Industry Get Snowed In?]

There could be some ancillary benefits to the growing number of travelers, too.

For one, David Koenig for Yahoo Finance reports that the increase in travel will also the need for changes including a new satellite-based air traffic control system to replace the current radar-based technology. This could lead to more revenue for other sectors, as well.