The price of crude oil began to fall in October and hit the $50 per barrel mark in late November. ETF Trends writes that lower oil prices could be a tailwind for airline stocks, since fuel is one of their largest operating expenses. Many analysts are positive about the industry’s potential growth and have predicted a strong end of 2018. Macquarie analysts said “Generally speaking, we believe we are seeing the construction of a strong demand and revenue environment into the end of the year, lending itself to fare increases and ancillary opportunities.”
For investors seeking exposure to the airline industry, the U.S. Global Jets ETF (JETS) is the only available pure-play fund that focuses on the global aviation industry.
Read the full article, “Airline Stocks, ETF Could Fly Into the New Year,” on ETFtrends.com.
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Ancillary fees/revenue, in the airline industry, is revenue from non-ticket sources, such a baggage fees and on-board food and services, and has become an important financial component for low-cost carriers.