US Global Jets ETF Drops from $31.33 to $23.81 as Fuel Costs Surge 124%
The US Global Jets ETF plunged from about $31.33 to $23.81 as jet fuel costs surged 124% since January 1 and 81% since the Iran conflict began. Citi maintains Buy ratings on Delta Air Lines and SkyWest, highlighting Delta’s Trainer refinery covers 75% of its fuel and strong profit margins.
1. ETF Plunge Driven by Surging Jet Fuel Costs
The US Global Jets ETF fell from around $31.33 to a low of $23.81 as jet fuel prices jumped 81% since the Iran conflict began and 124% since January 1, triggering a selloff in airline shares.
2. Citi’s Continued Bullish Position on Airlines
Despite the broad selloff, Citi analysts maintain Buy ratings on Delta Air Lines and SkyWest, citing their lower sensitivity to oil-price shocks and potential for outperformance versus peers more exposed to fuel volatility.
3. Delta Air Lines’ Protective Strategies
Delta’s Monroe Energy Trainer refinery covers 75% of its fuel needs, helping shield margins, while its industry-leading pre-tax profit margin and declared dividend of $0.1875 per share offer additional support to investors.