Airline ETF sets 52-week low amid oil price spike and continued fighting in Ukraine
Mar. 07, 2022 2:31 PM ET
By Jason Capul
The U.S. Global Jets ETF (NYSEARCA: JETS) and it's $3.4B assets under management have felt selling pressure lately, as investors dump shares of the exchange traded fund. The recent spike in oil prices, fueled by Russia's invasion of Ukraine, has pushed the airline sector sharply lower.
In Monday's intraday trading, JETS had fallen 9.4% on the day and was down 19% on the year. At the same time, the fund's five top holdings had all reached 52-week lows.
The prospect of high fuel prices has sent investors fleeing from airline stocks lately. This has come as oil prices (Cl1: COM) have surpassed $120 per barrel. As oil spikes, so in turn, has the cost of jet fuel, now at its highest level in 13 years.
Moreover, the escalation of war between the Ukraine and Russia have raised concerns about travel demand, as Europe faces a major conflict and some commentators worry about the potential of World War III.
JETS' top five holdings are Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), and Alaska Air Group (NYSE: ALK), which are weighted at 10.31%, 10.06%, 9.51%, 9.46%, and 3.29%, respectively. Each have dropped to a 52-week trading low on Monday.
In afternoon trading, DAL found itself -10.7%, UAL was -13.4%, LUV was down 7.7%, while AAL was -9.7%, and ALK was -9.6%.
JETS and its top five positions are not the only airline stocks that are feeling the heat today. See a list of other airline stocks that are also trading to the downside.
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