HANetf : International air travel will survive the turbulence of any new Coronavirus variants to deliver a strong summer 2022 as demand returns, the US Global Jets UCITS ETF (ticker: JETS) says.
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Is a summer international air travel recovery coming despite Coronavirus fears?
- Summer 2022 will see a strong return for international travel even if new Coronavirus variants emerge, analysts believe
- Challenging conditions will remain but cargo demand will continue to boom, and new low-cost international offerings could launch
- US Global Jets UCITS ETF will take off on travel recovery and also benefits from the performance of support industries
The ETF, which is listed on the London Stock Exchange and other bourses across Europe, believes challenging conditions will continue for the airline industry, but analysts believe travellers will “probably insist on going anyways” even if new variants emerge. The industry will also benefit from continuing growth in cargo flights and potentially from the launch of new low-cost international airline offerings.
The U.S. Global Jets UCITS ETF points to average fares remaining well below 2019 levels and while new ticket sales are rising, demand for corporate and long-haul international continues to lag hitting revenues.
US travellers are more focused on domestic flights with 59% of customers preferring to stay in the States but interest in overseas destinations is climbing with holiday company G Adventures reporting a 35% rise in demand for November compared with 2019. Popular destinations include Peru, Costa Rica, and Morocco.
Frank Holmes, US Global Investors Inc CEO and Chief Investment Officer, said: “Technological advances and the easing of restrictions will dictate the tone of the air travel industry in 2022. However, cargo could continue to boom and of course the pandemic will continue to take its toll.”
Source: ETFWorld.co.uk
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