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
Should l Buy LUV?
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 rise
14 Analyst Rating
4 Buy
9 Hold
1 Sell
Hold
Current: 43.030
Low
34.00
Averages
44.21
High
60.00
Current: 43.030
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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- Executive Speakers: Key executives, including CEO Bob Jordan and COO Andrew Watterson, will present at the conference, conveying the company's strategy and future outlook, thereby boosting investor confidence.
- Live Webcast: The conference will be webcast live, allowing global investors to participate in real-time, which enhances transparency and strengthens engagement with investors, likely improving shareholder relations.
- Investor Relations Link: Investors can access the webcast link via Southwest Airlines' Investor Relations homepage, further enhancing communication channels between the company and its investors, supporting long-term growth.
See More
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- Conference Invitation: Southwest Airlines has been invited to speak at the J.P. Morgan Industrials Conference, showcasing its influence and recognition in the aviation industry, which is expected to attract investor interest.
- Executive Speakers: Key executives, including CEO Bob Jordan and COO Andrew Watterson, will present, conveying the company's strategy and future direction, thereby enhancing investor confidence.
- Live Webcast: The event will be webcast live, allowing investors to access it via the Southwest Airlines Investor Relations homepage, which increases information transparency and interaction, fostering communication with investors.
- Schedule Details: Scheduled for March 17, 2026, at 11:30 AM EDT, timely information dissemination will help investors stay updated on company developments, further driving market attention towards Southwest Airlines.
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See More
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- Conference Invitation: Southwest Airlines has been invited to speak at the J.P. Morgan Industrials Conference, highlighting its significant position in the aviation industry, which is expected to attract investor attention and enhance the company's image.
- Executive Speakers: Key executives, including CEO Bob Jordan and COO Andrew Watterson, will present at the conference, conveying the company's strategy and future outlook, thereby boosting investor confidence.
- Live Webcast: The conference will be webcast live, allowing global investors to participate in real-time, which enhances transparency and strengthens engagement with investors, likely improving shareholder relations.
- Investor Relations Link: Investors can access the webcast link via Southwest Airlines' Investor Relations homepage, further enhancing communication channels between the company and its investors, supporting long-term growth.
See More
Southwest Airlines Invited to J.P. Morgan Conference
- Conference Invitation: Southwest Airlines has been invited to speak at the J.P. Morgan Industrials Conference, showcasing its influence and recognition in the aviation industry, which is expected to attract investor interest.
- Executive Speakers: Key executives, including CEO Bob Jordan and COO Andrew Watterson, will present, conveying the company's strategy and future direction, thereby enhancing investor confidence.
- Live Webcast: The event will be webcast live, allowing investors to access it via the Southwest Airlines Investor Relations homepage, which increases information transparency and interaction, fostering communication with investors.
- Schedule Details: Scheduled for March 17, 2026, at 11:30 AM EDT, timely information dissemination will help investors stay updated on company developments, further driving market attention towards Southwest Airlines.
See More
Airlines Struggle with Increasing Jet Fuel Prices and Extended Security Wait Times, Leading to Declining Stock Values.
- Impact of Fuel Costs: Major U.S. airlines are facing increased jet fuel costs due to recent geopolitical tensions.
- Travel Disruptions: The ongoing conflict involving the U.S. and Israel's actions against Iran is causing travel disruptions, affecting airline operations.
- Stock Market Effects: These challenges are negatively impacting the stock performance of major airlines.
- Overall Industry Strain: The combination of higher costs and operational disruptions is creating significant strain on the airline industry.
See More
Oil Spike Pressures Airline Stocks
- Oil Price Surge: West Texas Intermediate crude has surged into the $100-per-barrel range due to supply disruptions in the Strait of Hormuz and escalating Middle East conflicts, marking a 60% increase over the past month, which significantly impacts airlines as jet fuel constitutes one of their highest variable costs.
- Rating Downgrade: Rothschild & Co analyst downgraded American Airlines (AAL) from Buy to Neutral and cut the price target from $17 to $12.50, citing limited financial flexibility in a high-cost environment, which exacerbates market concerns regarding airline stocks.
- Earnings Forecast Risks: If oil prices remain above $100, profit forecasts for Delta Air Lines (DAL) and United Airlines (UAL) may need substantial downward revisions, despite Delta's Monroe Energy refinery providing a partial hedge that United lacks, highlighting the vulnerability of these airlines to fuel price fluctuations.
- Investor Sentiment Cautious: The market exhibits cautious sentiment towards the short-term trajectory of airline stocks, with traders likely viewing any strength in major U.S. airline stocks as an opportunity to de-risk rather than a signal to buy, reflecting uncertainty about future profitability.
See More
US Airline Stocks Decline as Crude Oil Prices Rise Over 14%
Airline Shares Decline: Shares of U.S. airlines have dropped significantly, reflecting concerns in the market.
Crude Oil Price Surge: The decline in airline shares coincides with a surge in crude oil prices, which have increased by more than 14%.
See More
Two Most Affected Stocks Since the Start of the Iran War Decline Again, But There’s Reason for Optimism.
- Impact of Rising Oil Prices: Surging oil prices are negatively affecting the stock market, leading to broader economic concerns.
- Travel Industry Struggles: The travel sector is experiencing significant challenges, facing a harder hit compared to other industries due to rising fuel costs.
See More
