This Airline is Catching Investors’ Attention – Here’s Why

The phrase that fans of the NFL team New York Jets have been repeating for years has long sounded a bit flat. But for investors looking for market recovery stories, the US Global Jets ETF (ticker: JETS) might offer some reason for optimism.

The transportation sector has been among the top performers over the past month. Both the Dow Jones Transportation Average and the iShares US Transportation ETF (IYT) have reached new 52-week highs. One of the drivers behind this upward movement is the recovery of airlines.

Investing in the airline sector is generally not considered a place for stable returns due to its highly cyclical nature. When it moves, it usually moves together. The current rise is smoother but steady, and analysts believe we are entering a period of more moderate and sustained growth that could extend well into 2026.

The JETS ETF provides a convenient way to gain exposure to airlines without the risk of picking individual stocks. The four largest holdings make up about 45% of the fund: Southwest (LUV), American (AAL), Delta (DAL), and United (UAL). Three of them – Southwest, Delta, and United – are already hitting new highs, while American is climbing to its highest level in the past nine months.

The current upward movement offers a good balance between risk and potential return.

Market setup
The chart over the past year clearly shows a breakout to new highs. There is strong resistance around $27, which has been tested multiple times. The price is now moving above this level, opening the door for further gains. The breakout above $27 will define the risk going forward. Given the cyclical nature of the sector, the inflow of new capital into transportation, and the broader market picture, there is solid tailwind supporting prices.

Long-term view – based on a 10-year chart – shows a target of around $33. This represents potential growth of about 20% from current levels. Considering the four-year consolidation at the bottom, a more optimistic scenario allows for a move toward the low $40s.

Trading idea
We prefer a long position while the breakout remains in effect. Strong resistance exists around $33, but momentum is likely to carry the price to this level over the coming months. Although the sector is cyclical and may not quickly break through this barrier, the odds for further gains over a longer period look good.

From a risk perspective, stops are best placed near the 50-day moving average. Historically, when the fund is in a sustained uptrend, this average serves as a strong support. If the price falls below it and fails to quickly reclaim the $27 level, the short-term idea will be considered unsuccessful.

In the end, the US Global Jets ETF provides access to a part of the transportation sector with growth potential and is a suitable way to diversify at a time when airlines are just gaining momentum. And it may even be more enjoyable to follow than the New York football team.