In an attempt to reinvigorate the business, United Continental Holdings (NYSE: UAL) tapped former American Airlines Group (NYSE: AAL) executive Scott Kirby to be its new president, lifting airline industry shares and sector-related exchange traded funds.
The U.S. Global Jets ETF (NYSEArca: JETS), the only dedicated airline industry-related ETF on the market, rose 2.4% Tuesday. JETS, though, was down 10.8% year-to-date.
Kirby, the former president of American Airlines, will be taking on the newly created president tag at United Continental, a move one analyst said gives United someone regarded as “one of the best revenue managers in the industry,” Investor Business Daily reports.
SEE MORE: When to Buy the Airline ETF JETS
UAL shares jumped 7.9% and were testing their resistance at the 200-day simple moving average on Tuesday. Meanwhile, AAL shares gained 1.8%.
JETS include a 14.1% tilt toward AAL and 12.8% to UAL.
“United has lacked intellectual rigor,” consultant Robert Mann told Fortune. “Scott going over there will absolutely shake up the place.”[related_stories]