Airline ETFs Rally on Delta's Bullish Outlook

Group 1: Delta Air Lines Performance - Delta Air Lines reported earnings per share of $2.10, exceeding the Zacks Consensus Estimate of $2.04, but down 11% from the previous year [2] - Revenues slightly decreased year over year to $16.65 billion, surpassing the Zacks Consensus Estimate of $16.2 billion [2] - The company restored its 2025 guidance, projecting earnings of $5.25-$6.25 per share, with the Zacks Consensus Estimate at $5.11 [3] Group 2: Industry Impact - Delta's strong earnings have led to a rally in the broader U.S. airline sector, with U.S. Global Jets ETF (JETS) rising 7.3% and Themes Airlines ETF (AIRL) increasing by 7.9% [1][5] - Other airlines also experienced significant gains, including United Airlines (14.3%), American Airlines (12.7%), Alaska Air (9%), and Southwest Airlines (8%) [5] Group 3: Market Trends - Delta indicated strong momentum in the airline industry, with stabilized bookings, a 5% increase in premium ticket revenues, and an 8% rise in loyalty program revenues, despite a decline in standard main cabin fares [4] - CEO Ed Bastian noted improvements in consumer and corporate confidence, which are crucial for sustained travel demand [4] Group 4: Fuel Costs - Falling oil prices have positively impacted airline stocks, with Delta's fuel expenses dropping 11% year over year and per-gallon costs down 14%, easing margin pressures [6] Group 5: ETF Insights - U.S. Global Jets ETF has an asset base of $885.5 million and a trading volume of nearly 4 million shares daily, charging 60 bps in annual fees [8] - Themes Airlines ETF manages assets worth $1 million, with American firms comprising 42% of its holdings, and charges 35 bps in annual fees [9]