Should You Invest in Airline Stocks or the JETS ETF with Holiday Travel at Record Levels?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 04 2025
0mins
Source: NASDAQ.COM
Air Travel Surge: Airlines are experiencing a rally alongside retail stocks, with air travel hitting record levels, including over 3.1 million travelers screened by the TSA on the Sunday after Thanksgiving, marking the busiest day in its history.
Stock Performance: Delta and United Airlines are leading the stock surge among major airlines, with both companies showing resilience despite recent disruptions, while SkyWest and LATAM Airlines have received buy ratings due to positive growth prospects.
ETF Insights: The U.S. Global Jets ETF, which includes major airlines, is currently rated as a hold and has seen modest growth, but the overall airline industry is in the lower tier of Zacks rankings, prompting caution for investors.
Future Outlook: Despite operational challenges, the record air travel day signals a positive trend for the airline industry, with experts recommending stocks with strong potential for growth in the coming months.
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Analyst Views on LUV
Wall Street analysts forecast LUV stock price to fall
14 Analyst Rating
4 Buy
9 Hold
1 Sell
Hold
Current: 50.830
Low
34.00
Averages
44.21
High
60.00
Current: 50.830
Low
34.00
Averages
44.21
High
60.00
About LUV
Southwest Airlines Co. (Southwest) operates Southwest Airlines, a passenger airline that provides scheduled air transportation in the United States and near-international markets. The Company's fare products include four categories: Wanna Get Away, Wanna Get Away Plus, Anytime, and Business Select to provide customers options when choosing a fare. It also offers ancillary services, such as EarlyBird Check-In, Upgraded Boarding, and transportation of pets and unaccompanied minors, in accordance with Southwest’s respective policies. Its Rapid Rewards loyalty program enables program members to earn points for every dollar spent on Southwest base fares, also including purchases paid with LUV Vouchers, gift cards, or flight credit, with no portion of the purchase price paid with Rapid Rewards points. It operates over 803 Boeing 737 aircraft in its fleet and serves 117 destinations in 42 states, the District of Columbia, the Commonwealth of Puerto Rico, and ten near-international countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Legal Relief Options: Long-term shareholders of Southwest Airlines may have the opportunity to seek corporate governance reforms, return of funds, or court-approved financial incentive awards, providing greater protection of shareholder rights and potential economic benefits.
- Importance of Participation: Shareholder involvement can improve a company's policies, practices, and oversight mechanisms, promoting effective management and ultimately enhancing overall shareholder value, highlighting the significance of collective action in corporate governance.
- Legal Fee Arrangement: Halper Sadeh LLC will handle this case on a contingent fee basis, meaning shareholders will not be responsible for out-of-pocket legal fees or expenses, reducing the financial burden on shareholders and encouraging more investors to seek legal relief.
See More
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- First Aircraft Launch: The first Starlink-equipped aircraft will enter service this summer, a move that not only meets customer expectations for seamless connectivity but also has the potential to boost customer loyalty and brand image.
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- Executive Commentary: Southwest's Chief Customer & Brand Officer Tony Roach noted that free WiFi has been a huge hit with Rapid Rewards members, indicating strong customer demand for seamless connectivity while traveling, which suggests further innovations in service offerings in the future.
See More
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- Significant Technological Advantage: The Starlink satellite network consists of over 9,000 low-Earth orbit satellites, capable of supporting HD streaming and online gaming, greatly improving the inflight entertainment experience and likely attracting more customers to choose Southwest, enhancing its market competitiveness.
- Enhanced Customer Experience: As the largest U.S. airline offering free WiFi fleetwide, Southwest's integration of Starlink, supported by T-Mobile, will further elevate the flying experience, meeting customer expectations for seamless connectivity and promoting increased customer loyalty.
- Strategic Investment Outlook: This technological integration not only upgrades existing services but also reflects Southwest's commitment to the future of air travel, with expectations to attract more passengers through improved service, driving long-term growth for the company.
See More
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- Flight Suspension: The FAA temporarily halted all flights within an 11-mile radius of El Paso International Airport due to suspected cartel-operated drones entering U.S. airspace, highlighting significant security concerns.
- Military Response: The U.S. military took action to neutralize the drones using various counter-drone tools, including electronic disruption systems and directed energy weapons, indicating a robust defense against aerial threats.
- Flight Resumption: Hours later, the FAA lifted the restrictions, confirming that commercial aviation was not at risk and normal operations could resume, demonstrating a quick assessment and response to aviation safety.
- Increased Drone Activity: Criminal groups have increasingly deployed drones along the southern border for monitoring and smuggling, with U.S. Northern Command reporting over 1,000 drone incursions monthly, underscoring the growing severity of this emerging threat.
See More
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- Background of Restrictions: The FAA had imposed restrictions on Tuesday night, barring flights within an 11-mile radius of El Paso International Airport and below 18,000 feet for up to 10 days, indicating a serious concern for security issues.
- Local Reaction: Local leaders expressed shock at the sudden decision, with El Paso City Rep. Chris Canales noting that neither local government nor military bases received advance notice, highlighting a lack of transparency in government security management.
- Impact on Airlines: According to aviation data firm Cirium, Southwest Airlines, American Airlines, and United Airlines have hundreds of flights scheduled through El Paso this month, and the lifting of restrictions will help restore normal operations for these airlines, mitigating potential economic losses.
See More
