An Airline sector-related exchange traded fund took flight on Friday after House Speaker Nancy Pelosi promised relief for the beleaguered industry that just saw its financial aid dry up.
The U.S. Global Jets ETF (NYSEArca: JETS), the lone ETF dedicated to airline stocks, gained 0.7% on Friday, testing its short-term resistance at the 50-day simple moving average.
Pelosi said relief for the airline industry was progressing through Congress and lawmakers will provide new help for airlines either through a broad-based stimulus bill or “bipartisan standalone legislation,” Bloomberg reports.
Carriers like American Airlines Group Inc. and United Airlines Holdings Inc. have started to cut 33,000 employees after $25 billion in federal payroll support expired on Wednesday, September 30. The March aid package previously required airliners to prohibit job cuts until October 1. The industry continues to suffer from the sudden plunge in flights after the coronavirus pandemic hit global economies.
“As relief for airline workers is being advanced, the airline industry must delay these devastating job cuts,” Pelosi said in a statement.
Airlines have petitioned with lawmakers and the White House in recent weeks for an additional $25 billion more in financial aid to preserve jobs until March after a significant rebound in travel failed to bring customers in over the summer, CNBC reports.
“As promised we will reverse our furlough process and recall any impacted team members if the Payroll Support Program is extended in the next few days,” American Airlines said in response to Pelosi’s promise.
However, the relief bill continues to struggle to gain traction. Representative Peter DeFazio, chair of the House Transportation and Infrastructure Committee, failed on Friday to pass approval of the assistance measure, Reuters reports.
Republicans “killed this legislation,” DeFazio said. “These people’s lives are at stake.”
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