What to watch after Alaska Airlines and Hawaiian Airlines closed their merger (NYSE:ALK)
Acquisition Completion: Alaska Air Group has successfully completed its acquisition of Hawaiian Holdings.
Next Steps: The airlines will now work towards obtaining a single operating certificate from the Federal Aviation Administration to enable joint operations.
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Analyst Views on JETS

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- Market Trends: The stock market is experiencing growth this year, driven by the transportation sector, including planes, trains, automobiles, trucks, railroads, and boats.
- Cultural Reference: The title "Planes, Trains and Automobiles" references a classic 1980s comedy, highlighting the intersection of entertainment and economic themes.

- Market Performance: U.S. airline stocks have experienced significant turbulence over the past year.
- Future Outlook: Despite past challenges, there is optimism for a smoother trajectory in the airline sector for 2026.
Joby Aviation's Expansion Plans: Joby Aviation is accelerating its efforts to integrate electric air taxis into daily travel by partnering with Metropolis Technologies to develop 25 vertiports across the U.S., adapting existing sites for efficient air-ground transportation connections.
Increased Production Capacity: The company plans to double its U.S. production capacity to support the output of four aircraft per month over the next two years, with potential aircraft and service sales exceeding $1 billion.
Regulatory Support for eVTOLs: The federal government's eVTOL Integration Pilot Program aims to facilitate early commercial operations of eVTOLs, with a presidential executive order directing the Department of Transportation and FAA to enable mature eVTOL services in select markets as early as next year.
Global and Technological Advancements: Joby is expanding internationally with agreements for pre-commercial flights in Saudi Arabia and is collaborating with Nvidia to enhance its Superpilot autonomous flight system, signaling a pivotal moment in aviation according to CEO JoeBen Bevirt.
Airfare Trends: U.S. airfares decreased by 5.4% in November year-over-year, while core inflation rose by 2.6%. Predictions for 2026 suggest a modest increase in airfares of 1-2%, influenced by factors like the World Cup.
Mergers and Acquisitions: Revived merger talks between Spirit Aviation Holdings and Frontier Group could lead to a transaction by year-end, aiming to create a larger ultra-low-cost carrier with improved operational efficiencies.
Airline Stocks Overview: Major U.S. airline stocks include American Airlines, Delta, Southwest, and others, with expectations of significant industry growth and profitability in the coming years.
Future Projections: Global airlines are anticipated to achieve record profits in 2026, with the airline sector expected to generate $1 trillion in revenue by 2025, according to industry forecasts.
Cruise Operators' Stock Surge: Shares of cruise operators experienced a significant increase as investors anticipated that lower interest rates would encourage consumers to book vacations on ships.
Broader Travel Industry Rally: The positive trend extended beyond cruises, with other travel companies also seeing stock gains for the second consecutive day following the Federal Reserve's decision to lower its benchmark interest rate for the third time in a row.
Current Performance of the Airline Sector: The US Global Jets ETF (JETS) is gaining attention as the airline sector shows strong performance, with major airlines like Southwest, Delta, and United reaching new highs, indicating a potential turnaround for investors.
Investment Strategy: The JETS ETF offers a way to invest in the airline sector without the risks associated with individual stocks, making it an attractive option for those looking to diversify their portfolios.
Market Analysis and Projections: A breakout above the $27 resistance level is seen as critical, with potential upside targets of $33 and possibly low $40s in the long term, supported by a favorable long-term chart setup.
Risk Management: Investors are advised to set stop-loss orders near the rising 50-day moving average to manage downside risk, as this level has historically provided support during upward trends.










