Oil prices can significantly weigh on a company’s bottom line, with U.S. airliners consuming 19 to 20 billion gallons of jet fuel per year. However, U.S. airlines have cut costs by nearly 50% year-over-year as oil prices tumbled to $50 per barrel.
Consequently, S&P Capital IQ believes many airliners, including DAL and JBLU, will experience rising revenue this year as companies capitalize off the lower energy prices.
U.S. Global Jets ETF
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Max Chen contributed to this article.