Buy Airline Stocks or the JETS ETF Amid Record Holiday Travel?

Core Insights - Airlines are experiencing a rally alongside retail stocks due to expectations of a record holiday shopping season, with air travel reaching new peaks, including a record of over 3.1 million travelers screened in a single day by the TSA on November 30 [1][2]. Airline Performance - Flight bookings for Thanksgiving saw a 2% year-over-year increase, while Christmas reservations are up 1% so far [2]. - Delta (DAL) and United (UAL) are leading the surge in major airline stocks, benefiting from their efficiency and robust financial figures, with Delta trading under $70 and United over $100 [3][4]. Stock Ratings - Delta and United currently hold a Zacks Rank 3 (Hold), indicating a neutral outlook despite recent stock momentum [5]. - SkyWest (SKYW) and LATAM Airlines Group (LTM) are the only airlines with a buy rating, Zacks Rank 2 (Buy), supported by positive EPS revisions and minimal impact from flight disruptions [6]. Business Resilience - SkyWest's business is less affected by disruptions due to its ties to essential rural air service programs and long-term contracts, with government support preventing funding lapses [7]. - LATAM Airlines is recognized as a leading airline in Latin America, showing strong performance among foreign carriers [8]. ETF Insights - The U.S. Global Jets ETF (JETS) offers exposure to major airline stocks and holds a Zacks Rank 3 (Hold), with a year-to-date increase of 7% and trading at a 52-week high of $27 [9][10]. - The ETF's top holdings include Southwest, American, Delta, and United, each accounting for over 10% of its composition [10]. Industry Outlook - The Zacks Transportation-Airline Industry is currently in the bottom 40% of over 240 Zacks industries, but recent air travel momentum is promising, especially with the record travel day indicating positive trends ahead [11].