PRASM, or passenger revenue per available seat mile, is an important measure of performance in the airline industry.

While airline industry may be struggling in the short-term, Becker anticipates improvements in the second half of the year, especially as companies enjoy low oil costs and increase domestic fares. [Greater Efficiency, Global Travel Demand Provide Tailwinds for Airline ETF]

“The outlook for the airlines continues to improve as the industry started raising fares in the domestic market and while cutting capacity,” Cowen added. “We expect all the ‘bad news’ in the shares to be reflected in the stocks after the June traffic releases. As investors look to 2H we expect airline shares to rise as oil prices have stabilized a bit in the $55 to $65 per barrel range, meaningfully lower than last year while managements make appropriate capacity reductions.”

U.S. Global Jets ETF

For more information on the airline industry, visit our airlines category.

Max Chen contributed to this article.