JETS ETF Breaks Above Pre-COVID Highs for First Time in Six Years on Falling Oil

Key Facts

In a development reflecting the airline sector's recovery years after the pandemic, the JETS ETF surpassed its pre-COVID highs for the first time, according to reports. The rally was driven by falling oil prices, capacity discipline among carriers, and resilient travel demand that held up despite economic pressures.

The breakout comes as oil prices continue to slide; the U.S. EIA weekly report for the week ended June 24 showed a crude stock draw of 6.1 million barrels, exceeding expectations. Meanwhile, the U.S. Services PMI improved to 51.3 in June, signaling sustained economic activity that supports travel demand.

Investors are also watching the Fed's bank stress test results scheduled for June 24, which could influence risk appetite for cyclical sectors like airlines.