The industrial sector is taking off, and aviation giants United Airlines (UAL) and Delta Air Lines (DAL) are leading the charge. These two companies have propelled the Industrial Select Sector SPDR Fund (XLI) to impressive heights, with the ETF surging by 6.10% in the past month, outpacing the broader S&P 500’s 3.72% gain.
United Airlines Takes Off
United Airlines has soared by an astounding 41% in the past month, contributing significantly to the XLI ETF’s rise. The airline has been on a winning streak, up 51.78% over the last six months and 81.68% year-to-date. This bullish sentiment among investors stems from the airline’s impressive third-quarter financial results and its recently announced $1.5 billion share buyback program.
United’s third-quarter revenue reached $14.843 billion, exceeding analyst expectations of $14.783 billion. The airline also reported adjusted earnings per share of $3.33, comfortably beating the forecast of $3.13. These strong results have given United’s stock the fuel it needs to skyrocket, further propelling the XLI ETF.
Delta Keeps Climbing
Delta Air Lines, while not quite matching United’s dramatic ascent, has also seen impressive gains. Its stock has climbed 18% over the past month, 15% over the past six months, and a remarkable 59% over the past year. This growth trajectory is driven by Delta’s strong performance, despite reporting mixed third-quarter results.
Although Delta’s earnings per share came in at $1.50, just shy of the $1.52 consensus, due in part to a 9% drop in average fuel prices from the prior year, the airline still beat revenue expectations, bringing in $15.677 billion, slightly higher than analysts’ projections of $14.674 billion. Despite the mixed bag, Delta’s performance continues to make waves, reinforcing its position as a leading stock in the industrials space.
XLI ETF Soars
The aviation sector’s surge has propelled the XLI ETF to new heights. With both United and Delta driving much of the altitude gain, the ETF has not only kept pace with the broader market but has significantly outperformed it. This performance highlights the strong investor confidence in the aviation industry’s future growth potential.
