Delta's Robust Q2 Earnings Drive Airline Sector Surge. Today we highlight UAL and JETS.
On Thursday, Delta Air Lines Inc. (DAL), the first major airline to report Q2 earnings, delivered robust earnings and an optimistic full-year outlook. DAL cited better than expected financial results, strong demand for premium and international travel, and restored full-year guidance, leading to the DAL’s stock to shoot up almost 12% for the day. The stock is still a 3 for 5'er and has shown relative weakness against its peers. However, this event triggered a broader ripple effect across the airline industry, with other airline stocks seeing notable rallies, as shown by the chart below.
United Airlines Holdings Inc. (UAL) is set to report earnings after market close on July 16, 2025. UAL is a 4 for 5’er, after moving into a positive trend earlier this month, and ranks in the top half of the aerospace airline sector matrix. Following the 14% spike on Thursday, the stock reversed into a column of Os on Friday, providing a pullback opportunity for those looking to gain exposure. The technical picture for UAL is strong and improving. Initial support can be seen at $80, with additional support and the bullish support line seen at $77. Investors are closely watching UAL’s earnings, as its performance could set the tone for Southwest Airlines (LUV) & American Airlines (AAL), which are set to report July 23 and July 24, respectively, after market close.
Although not commonly cited in NDW’s analyst observations, it should be noted that airline stocks carry elevated volatility, as quantified by their RRisk & Beta. For diversified exposure to the global airline industry, consider investing in the U.S. Global Jets ETF (JETS), which tracks a broad range of airline stocks worldwide. The ETF’s top four holdings include UAL, DAL, AAL, and LUV, with each of them representing just over 10% of the fund’s total weight. JETS moved into a positive trend in mid-May and currently sits on its third consecutive buy signal. Along with a strong fund score of 5.35, JETS also has a positive score direction of 3.80. This means that JETS has moved up from a fund score low of 1.55 within the past 6 months to a fund score of 5.35. The weekly OBOS indicates that the fund is nearing overbought levels, but is still within favorable levels. Long exposure can be considered here. Initial resistance can be at $27, its multi-year high. Initial support is at $21.50, with additional support at $19.
