“Sentiment on U.S. airline stocks has recovered somewhat,” Raymond James analysts said in a note to clients.

Furthermore, the transportation sector and the airline industry have been relatively insulated from the trade war concerns. Airline companies revealed favorable second-quarter demand despite protectionism fears that rocked the broader equities market.

While fuel costs are an ongoing concern, oil prices have started to pullback. U.S. crude has decreased 10% from its June multiyear high. Some analysts argue that higher supply from large foreign producers, like Saudi Arabia, could cap oil price gains and potentially diminish fuel costs.

For more information on the airline ETF, visit our Airline category.