Tom Lydon Talks Continued Airline Concerns Amid Covid-19

With the seasons moving towards a time when families are typically getting ready for traveling, 2020 has obviously made things more challenging when it comes to airline travel. ETF Trends CEO Tom Lydon was on ‘The Ticker’ on Yahoo Finance on Thursday, discussing the status of airlines, with host Kristin Myers.

“As we get into the holiday season and COVID numbers increase, more people are going to be concerned about flying,” Lydon says, as he digs into the numbers when it comes to how these businesses have been doing, given everything that’s happened.

Airlines are not going away, and, as Lydon states, it’s unfortunate that while the companies are doing all they can, people are still concerned. Precautions are important, regardless of just how dire things may actually get. With that in mind, a key question is whether or not the airlines can hang on.

Independently, when looking at the major airlines, they do have enough cash on hand. However, at some point, they will have to let the government step in and help. With hopes of stimulus arriving anytime soon now dashed, it’s only made matters more uncertain.

JETS Lifts Off

Regarding the ETF space, the U.S. Global Jets ETF (JETS) has proven to be a great way to invest in the airlines, regardless of what’s going on around them, if investors feel that they will be able to recover. That in mind, while the ETF is down around 47% this year, at the beginning of the year, it had only $50 million in it, only to now be holding near $2 billion. This does show a sign of confidence for Americans looking into the airlines.

As far as rumors surrounding some airlines’ plans to begin booking the middle seats again, Lydon knows it comes down to personal choice. They are tough decisions to be made. At the same time, from the airlines’ perspective, efforts are being made to ideally feature safe travel, as families do begin considering the steps to take this holiday season.

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