Thanksgiving Travel Boom: Why Airline ETFs Could Be Your Next Smart Play

The U.S. airline industry is heating up again. After months of operational chaos triggered by the government shutdown, airlines are now riding a wave of strong demand. Industry forecasts predict over 31 million passengers will fly between November 21 and December 1, marking a notable uptick for the season. This travel surge presents a compelling investment opportunity, particularly through airline-focused ETFs that let you tap into the industry’s recovery without betting on individual carriers.

The Case for Diversification Over Single Stocks

Picking individual airline stocks can be risky. The sector faces constant headwinds: volatile fuel costs, labor negotiations, and operational hiccups that can ground entire fleets. When one airline stumbles—think sudden IT failures or crew shortages—shareholders feel the pain directly. Airline ETFs solve this problem by spreading your investment across multiple carriers and related businesses. A portfolio holding Southwest Airlines, Delta Airlines, United Airlines and others means one company’s bad day doesn’t sink your entire position. This balanced exposure approach smooths out volatility while keeping you positioned for industry growth.

Why Now? The Thanksgiving Effect

The numbers tell the story. Airlines for America reports approximately 2.8 million passengers flying daily during the peak travel window—a 1% increase from 2024 levels. More importantly, United Airlines saw bookings jump 16% in mid-November compared to the same period last year, when disruptions peaked. The airline plans to carry 6.6 million customers through early December, up over 4% year-over-year.

Higher passenger volumes translate directly to revenue gains. Airlines can maintain premium ticket pricing during peak travel, boosting their revenue per available seat mile (RASM). Travelers who delayed booking due to the shutdown are now making purchases, creating a double-demand effect that should strengthen airline balance sheets heading into year-end.

Three ETF Options for Airline Industry Exposure

U.S. Global Jets ETF (JETS)

This fund provides broad exposure to global airline operators with a focus on U.S. carriers. Its largest positions include Southwest Airlines (11.51%), Delta Airlines (10.46%), and United Airlines (10.19%). Year-to-date performance shows a 1.4% gain, with momentum accelerating since mid-November (up 3.4% since November 15). JETS offers the most straightforward way to gain diversified airline exposure.

MAX Airlines 3X Leveraged ETNs (JETU)

For investors seeking amplified returns, JETU provides 3X leverage to the airline sector, including airlines, aircraft manufacturers, and air freight operators. United Airlines leads the fund at 9.22% weighting, followed by American Airlines at 9.05%. The fund has declined 18.4% year-to-date but recovered 1.5% since mid-November, reflecting the sector’s recent strength despite earlier headwinds.

MAX Airlines -3X Inverse Leveraged ETNs (JETD)

JETD works in the opposite direction, moving inversely to airline valuations with 3X leverage. With United Airlines (9.22%) and American Airlines (9.05%) as major holdings, this fund has plunged 47% year-to-date as the sector recovered. JETD lost an additional 2.8% since November 15 and suits only bearish traders expecting airline stocks to decline.

The Bottom Line

Thanksgiving travel forecasts signal genuine tailwinds for the airline industry. Rather than cherry-picking individual stocks exposed to fuel price swings or labor disputes, airline ETFs offer a smarter entry point. JETS remains the core choice for most investors, while JETU caters to those comfortable with leverage. Understanding each fund’s structure—especially leverage multiples—is essential before investing. The holiday travel boom is real, but smart diversification beats single-stock gambling every time.