High Fuel Prices Won't Stop Summer Travel

The nightmares are becoming more common... I'm a member of a Facebook group with about 1.2 million international female travelers. And in recent weeks, it's clear that folks are having more trouble getting around... [Chaikin PowerFeed]( High Fuel Prices Won't Stop Summer Travel By Karina Kovalcik, senior quantitative analyst, Chaikin Analytics The nightmares are becoming more common... I'm a member of a Facebook group with about 1.2 million international female travelers. And in recent weeks, it's clear that folks are having more trouble getting around... You see, every third post seems to involve some kind of travel horror story. Airlines are rescheduling flights left and right. Most flights are extremely overbooked. And perhaps worst of all, people are being forced to deal with astronomical prices... One woman paid more than $600 to fly across the country. It wasn't even a nonstop flight and she dealt with all sorts of headaches along the way... The airline delayed her original flight. Then, she missed her connection and had to sleep on the airport's floor until the next day. To top it off, the airline downgraded her "economy plus" seat to "economy." And yet, she still had to pay almost 1.5 times the normal price for that outcome. But as crazy as it sounds, these types of stories are a good sign for the airline industry... Recommended Links: [Be Warned: A Specific Type of Market CRASH Is Coming Soon]( It's actually much bigger and more important than what happens to the Nasdaq or S&P 500. Yet some of the world's best investors are practically drooling in anticipation. Because this crash will create a slew of 100%-plus opportunities... backed by legal protections that stocks can only dream of. A top analyst tracking the story believes this could happen within months – and you must prepare now. [Get the full story here right away](. [Stocks Could Crash on July 19 at 4 p.m. ET]( The number of Nasdaq stocks down 50% or more has now hit a near record. And on July 19, it could get worse – much worse. At 4 p.m. Eastern time that day, one of America's most beloved firms will make an announcement that could send it plummeting. And take down hundreds of other stocks with it. [The man who called the 2020 Crash is posting a new public warning here](. If you haven't booked a flight recently, let me clue you in... Airfare prices are already up 40% since the beginning of the year. And they were projected to go up another 10% in May. (The official numbers aren't published yet.) Now, you might think soaring fuel costs are to blame for rising airfare prices. After all, [oil and gas prices are near record highs](. And as you can see, jet fuel prices are surging... [Chaikin PowerFeed] In other words, jet fuel prices surged roughly 40% in the first quarter of 2022. You might've noticed that this fuel-price increase matches the 40% bump in airfare prices so far this year. But it isn't an apples-to-apples comparison... That's because fuel only accounts for 10% to 12% of airlines' total expenses. Even after factoring in the projected 10% rise in May, the fuel-price increase still only works out to a 6% total rise in airlines' expenses. But remember, the airlines' income from selling tickets has increased between 40% and 50% in 2022. So what's the real reason for the surge in prices? Put simply... People want to travel. Demand for flights is increasing. We can see that trend playing out in the data, too... The Transportation Security Administration ("TSA") reports daily "travel checkpoint" numbers. And on Monday, the government agency said more than 2.3 million people passed through its checkpoints. That's up around 22% year over year. And importantly, the data shows that many folks have put their COVID-19-induced travel fears behind them... The latest numbers are only about 7% below the number of travelers in 2019. And they absolutely crush the approximately 353,000 folks who traveled on the same day in 2020. In other words, we're one the edge of making new travel highs. And it's happening even though the airlines are still recovering from their pandemic downturn. The Power Gauge sees the growing opportunity in the airline industry as well. The system recently flipped to a "bullish" rating for the U.S. Global Jets Fund (JETS). This exchange-traded fund has about $3.5 billion in net assets. It holds shares in all of America's major airlines. United Airlines (UAL) is its largest holding at around 12.7% of net assets. And Delta Air Lines (DAL), American Airlines (AAL), and Southwest Airlines (LUV) each make up more than 10%. The travel horror stories are growing. Fuel prices are high. And ticket prices are soaring. But that isn't stopping people from traveling. In fact, we're on the edge of making new highs in passenger volume. In the end, the latest numbers show that these airlines are set for a big summer. And the Power Gauge sees that coming opportunity, too. That's why you'll want to check out the airline industry today. Good investing, Karina Kovalcik Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -0.56% 7 20 3 S&P 500 -0.80% 89 305 103 Nasdaq -0.74% 9 66 24 Small Caps -0.56% 276 1105 508 Bonds -0.11% Energy +1.63% 17 4 0 — According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks are somewhat Bearish. Major indexes are mixed. * * * * Top Movers Gainers [rating] CRM +9.88% [rating] BKR +3.97% [rating] HPQ +3.84% [rating] HES +3.56% [rating] COP +3.02% Losers [rating] ALB -7.80% [rating] MCO -6.36% [rating] MOS -6.10% [rating] PARA -5.77% [rating] IDXX -5.62% * * * * Earnings Report Reporting Today Rating Before Open After Close HRL AVGO, COO, ZBRA No earnings reporting today. Earnings Surprises [rating] MDB MongoDB, Inc. Q1 $0.20 Beat by $0.30 [rating] NTAP NetApp, Inc. Q4 $1.44 Beat by $0.15 [rating] VEEV Veeva Systems Inc. Q1 $0.90 Beat by $0.02 [rating] HPE Hewlett Packard Enterprise Company Q2 $0.44 Missed by $-0.01 * * * * Sector Tracker Sector movement over the last 5 days Discretionary +7.92% Information Technology +4.80% Communication +3.35% Energy +3.06% Industrials +2.65% Financial +2.08% Materials +1.61% Utilities +0.28% Real Estate +0.23% Staples +0.19% Health Care -0.72% * * * * Industry Focus Oil & Gas Equipment Services 17 12 0 Over the past 6 months, the Oil & Gas Equipment Services subsector (XES) has outperformed the S&P 500 by +68.64%. Its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #1 of 21 subsectors. Top Stocks [rating] LBRT Liberty Energy Inc. [rating] PUMP ProPetro Holding Cor [rating] WTTR Select Energy Servic * * * * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, [click here](. You’re receiving this e-mail at {EMAIL}. For questions about your account or to speak with customer service, call [+1 (877) 697-6783 (U.S.)](tel:18776976783), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized investment advice. © 2022 Chaikin Analytics, LLC. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Chaikin Analytics, LLC. 201 King Of Prussia Rd., Suite 650, Radnor, PA 19087. [www.chaikinanalytics.com.]( Any brokers mentioned constitute a partial list of available brokers and is for your information only. 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