JETS ETF Rallies After-Hours On Hopes Of Consolidation Among US Airlines

• Duffy, however, added that he wouldn’t pre-commit to anything.
• He also reportedly warned that companies will have to peel off some of their assets if there is a merger involving two major airlines.
• Last month, Semafor reported that JetBlue is considering selling itself to a rival airline and has tapped advisers to assess the viability of the plan.

US Global Jets ETF (JETS) rallied 9% after-hours on Tuesday after U.S. transportation secretary Sean Duffy reportedly said that there is room for consolidation in the industry.

Trump loves to see big deals happen, Duffy said in an interview with CNBC, as per a report from Bloomberg. Duffy, however, reportedly added that any potential deal in the industry would face scrutiny on impact on ticket prices and competition.

The report also noted that the comments come amid rising jet fuel prices in light of the U.S.’s ongoing war with Iran.

Duffy Views

Duffy, however, added that he wouldn’t pre-commit to anything, as per the report. He also reportedly warned that companies will have to peel off some of their assets if there is a merger involving two major airlines in order to avoid a consolidation of market share.  

Currently, four major carriers — American Airlines (AAL), Delta Air Lines (DAL), United Airlines (UAL) and Southwest Airlines (LUV) — control the majority of the U.S. domestic passenger market. Shares of the companies rallied between 5% and 8% after hours at the time of writing.

Merger Talks

Last month, Semafor reported that JetBlue (JBLU) is considering selling itself to a rival airline and has tapped advisers to assess the viability of the plan. The company reportedly considered scenarios of how a deal with United Airlines, Alaska Airlines, or Southwest Airlines might fare in Washington.

JetBlue’s deal to acquire Spirit Airlines was blocked on antitrust grounds in 2024.  

How Did Retail Traders React?

On Stocktwits, retail sentiment around JETS, which provides exposure to the global airline industry, stayed within the ‘neutral’ territory over the past 24 hours, while message volume remained at ‘high’ levels.

JETS has gained nearly 38% over the past 12 months. 

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