Leading the sector higher on Thursday, JetBlue (NYSE: JBLU) was up 3.9%, Spirit Airlines (NYSE: SAVE) was up 3.3%, American Airlines Group (NYSE: AAL) was up 3.3%, United Continental (NYSE: UAL) was up 2.5% and Southwest Airlines (NYSE: LUV) was up 2.3%.
The airline ETF includes a heavy tilt toward the top four airlines, including 12.2% LUV, 11.7% DAL, 11.5% AAL and 11.3% UAL, along with 3.8% in JBLU.
Airline industry observers, though, should watch for potential rough patches ahead. For instance, oil prices have jumped almost 60% off their mid-February lows, which will increase jet fuel costs. Labor costs are increasing as employees demand higher wages and profit sharing. Airfares have dipped. Geographical risks, such as terror attacks and the Zika virus, have weighed on vacationers’ sentiment.
U.S. Global Jets ETF