Key insights
- U.S. Global Investors CEO Frank Holmes highlights strong travel demand and Delta's earnings as positive indicators for the airline sector and the broader economy. He suggests the JETS ETF offers an opportunity to capitalize on this trend, driven by post-pandemic travel and evolving travel patterns. Delta's refinery ownership provides a competitive advantage. Strength in cruise and cargo sectors further supports a positive outlook.
U.S. Global Investors CEO Frank Holmes joined Steve Darling from Proactive to discuss the strength of global travel demand and what it means for airline investments and the Jets ETF.
Holmes highlighted that despite ongoing geopolitical tensions and rising fuel costs, the airline industry continues to perform strongly, pointing to record quarterly revenue reported by Delta Air Lines as a key example.
He described the sector’s performance as a positive signal for the broader economy, noting, “It’s like the canary in the coal mine, but in a good way… global travel demand is just strong.” Airlines have been able to pass on higher ticket prices while maintaining robust demand, supported by increased global mobility in the post-pandemic environment.
The discussion also explored evolving travel patterns, including strong north-south traffic between North America and Latin America, as well as rising activity across Asia. Holmes pointed to the growing influence of digital nomads and seasonal travelers, who are helping drive bookings beyond pre-pandemic levels. He also highlighted a competitive advantage held by Delta, noting that its ownership of a refinery helps manage fuel costs and protect margins during periods of oil price volatility.
Beyond airlines, Holmes emphasized continued strength in adjacent sectors such as cruise travel and cargo shipping, suggesting that the “underlying belly of the global economy remains pretty strong.” Looking ahead, he expressed optimism that geopolitical disruptions will prove temporary, while global travel demand continues its upward trajectory—supporting long-term opportunities in airline equities and ETFs such as the U.S. Global Jets ETF (JETS).
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