Of course, oil, airlines’ largest input cost, is a pivotal part of the JETS story. Deutsche Bank “estimates that nearly 110 percent of the earnings gain will derive from lower fuel prices. It states that ‘the industry over the past several years has demonstrated its ability to successfully offset most, if not all, of the rise in fuel expense via a combination of cost savings and various revenue initiatives,” according to U.S. Global Investors.
However, some analysts believe a more normalized oil price could be beneficial to JETS and the airline stocks the ETF holds. With oil prices sliding to multi-year lows, some sell-side analysts think investors are not giving airline stocks enough credit for the benefits of lower fuel costs.
U.S. Global Jets ETF
