Citi Flags SkyWest as Least Oil-Sensitive with 81% Jet Fuel Spike
Citi highlights SkyWest as one of two least oil-price sensitive carriers even as jet fuel costs surge 81% since the Iran conflict began and 124% since January. The US Global Jets ETF plunged from $31.33 to $23.81, underscoring sectorwide stress that Citi argues undervalues SkyWest's resilience.
1. Citi Bulls on SkyWest's Oil Resilience
Analysts at Citi have identified SkyWest as one of two airline companies least sensitive to oil price shocks, positioning it for outperformance despite an 81% rise in jet fuel costs since the Iran conflict began. This endorsement follows concerns that rapid fuel inflation will weigh on all carriers, making low-sensitivity names stand out.
2. Sectorwide Cost and Price Pressures
Jet fuel prices have surged 124% since January, driving airlines to raise fares and pressuring margins across carriers. The US Global Jets ETF tumbled from $31.33 to $23.81, reflecting investor anxiety over reduced travel demand driven by geopolitical tensions.