The Airlines Trading Card Game: How JETS ETF Stacks Up Against Individual Carrier Picks

The holiday travel surge has turned the airline sector into an unexpected collector’s market—much like how trading cards attract investors seeking both value and potential upside. With the Transportation Security Administration processing a record 3.1 million travelers on the Sunday after Thanksgiving (November 30th), marking the busiest screening day in its 23-year history, the aviation industry is experiencing unprecedented momentum that extends far beyond the holiday season.

Record Bookings Paint a Rosy Picture

Air travel reservations have climbed notably compared to last year, with a 2% year-over-year increase in Thanksgiving flight bookings and Christmas reservations running 1% higher so far. These figures represent more than seasonal spikes—they signal a structural shift in consumer travel behavior that’s outpacing pre-pandemic recovery rates. For investors playing the “trading cards” of the airline space, distinguishing between mainstream plays and niche opportunities has become critical.

The JETS ETF: A Diversified Bet on Aviation

The U.S. Global Jets ETF (JETS) remains one of the most accessible entry points for aviation exposure, maintaining a Zacks Rank #3 (Hold) despite headwinds. Since its 2015 inception, JETS has delivered a modest +7% year-to-date return and recently touched a 52-week high of $27. The fund’s portfolio is anchored by major carriers—Southwest (LUV), American Airlines (AAL), Delta (DAL), and United (UAL) each exceed 10% weighting—with secondary positions in SkyWest (2.77%) and LATAM (0.49%).

However, investors should note that the broader Zacks Transportation-Airline Industry currently ranks in the bottom 40% of over 240 tracked sectors, suggesting caution despite recent rallies.

Individual Carriers: The Rare Winners

Two carriers stand apart with actual buy ratings. SkyWest (SKYW) and LATAM Airlines Group (LTM) both hold Zacks Rank #2 (Buy) designations, buoyed by positive earnings revisions over the last 60 days. SkyWest’s resilience stems from its essential rural service contracts and the protected $600 million Essential Air Service program, which continued funding despite the recent government shutdown. LATAM, meanwhile, dominates Latin American routes across Brazil, Peru, Colombia, and Ecuador, positioning it as a notable outperformer among international carriers.

Delta and United, while showing strong operational metrics and trading at attractive multiples (DAL under $70, UAL above $100), received downgraded ratings to Hold following the shutdown disruption assessment. Yet both carriers demonstrate the efficiency and earnings profiles that draw serious investors seeking trading opportunities in mature, profitable businesses.

The Bottom Line

The choice between JETS and individual airline stocks mirrors collecting strategy—diversification through an ETF offers safety but capped upside, while picking individual carriers like SkyWest or LATAM offers higher conviction with commensurate risk. The recent record-breaking air travel day in U.S. history provides genuine tailwinds, but operational recovery and earnings stability remain the true differentiators for 2024.