IATA had previously said profits were “within reach” for 2023. For 2022, IATA narrowed its industry-wide loss forecast to $6.9 billion from $9.7 billion. Economists expect a “surge in travel” this holiday season, reports Yahoo Finance.
According to Hopper’s 2022 Holiday Travel Outlook, released in September, the average domestic ticket price for a Christmas trip is $463. Christmas air fares are now on average 31% higher than in 2019 and 39% higher than last year. International Christmas airfare is now $1,300 per ticket, up 26% from 2019 and 20% from 2018.
Travel ETFs may surge on optimism that consumers will continue to travel despite fares rising during this holiday season. If this isn’t enough, IATA data shows the airline could be profitable in his 2023. Heavy Business Expected Dec 22-30 (Read: Airline ETF Timing (jet – free report)? ).
Against this backdrop, below are some ETFs you can play with to cash in on your Christmas trip.
US Global Jets ETF (jet – free report)
The underlying US Global Jet Index tracks the performance of airlines around the world, with an emphasis on domestic passenger airlines. The fund’s asset base is $2.06 billion. Delta Air Lines (11%), Southwest Airlines (11%), American Airlines (10.5%) and United Airlines (9.98%) occupy the top four positions. Fund fees are 60 bps.
SPDR S&P Transportation ETF (XTN – free report)
The underlying S&P Transportation Select Industry Index represents the transportation segment of the S&P Total Market Index. The fund’s asset base is $415.3 million. Among the divisions by sector, trucking (39.17%), airlines (26.1%) and air freight and logistics (19.3%) occupy the top three positions. The fund charges a fee of 35 bps.
iShares US Transportation ETF (IYT – free report)
The underlying S&P Transportation Select Industry FMC Capped Index (USD) measures the performance of companies in the industrial transportation, aviation and general industrial services industries in the US stock market. The fund’s asset base is $697 million. The IYT fee is 39 bps. Rail (31.5%), Air Freight & Logistics (31.2%), Trucking (21.1%), and Airlines (14.7%) occupy the top four geographic segmentations.
ETFMG Travel Tech ETF (over there – free report)
The underlying Prime Travel Technology Index NTR is a global securities firm engaged in the travel technology business that provides technology via the internet and internet-connected devices such as mobile phones to facilitate the booking and booking of travel. Track the performance of exchange-listed stocks or their corresponding ADRs or GDRs. , ride sharing and promotions, travel price comparisons and travel advice.
The fund’s assets are $144.8 million. Travel bookings and bookings account for about 55% of funds, followed by travel price comparison (15.97%), travel advice (15.71%), and ride-hailing (12.3%).