Turbulence Ahead: 3 ETFs Hit By Slump In Travel Stocks

The travel industry has experienced unexpected turbulence, which is rattling travel-focused ETFs. As airlines lower revenue forecasts, booking platforms struggle, and hotels and cruise lines see declining stock prices, investors in travel ETFs are watching their portfolios slip. If you've been tracking this sector, here are three ETFs feeling the pressure.

1. U.S. Global Jets ETF JETS

The U.S. Global Jets ETF is the go-to ETF for airline exposure, holding major carriers like Delta Air Lines DAL, American Airlines AAL, and Southwest Airlines LUV. With Delta and American Airlines slashing their revenue forecasts due to weak demand, JETS has been on a downward trajectory. Delta's warning about slowing corporate and leisure travel has only fueled concerns that the airline industry is facing a rough road ahead. The ETF is down 16% in the past month.

2. ETFMG Travel Tech ETF AWAY

The ETFMG Travel Tech ETF tracks online travel and booking companies like Expedia EXPE, Booking Holdings BKNG, and Airbnb ABNB. Expedia was one of the worst performers in the S&P 500 this week, tumbling 8% after major airlines cut earnings forecasts. Meanwhile, Airbnb dropped more than 6% as investors worried that consumers tightening their budgets would impact short-term rental demand. The ETF is down 9% in the past month.

Also Read: Why Expedia (EXPE) Stock Is Falling

3. Invesco Dynamic Leisure and Entertainment ETF PEJ

The Invesco Dynamic Leisure and Entertainment ETF covers a broader range of travel-related stocks, including hotels, cruise lines, and entertainment companies. Unfortunately, hotel stocks like Marriott MAR, Hilton HLT, and Hyatt H have been under pressure, while cruise operators like Norwegian Cruise Line NCLH, Carnival CCL, and Viking Holdings VIK have also been trading lower. Since PEJ is heavily tied to consumer discretionary spending, the slowdown in travel sentiment has affected it. The ETF price has fallen 14% in the past month.

Also Read: Aviation ETFs Face Turbulence As Oil Prices Fluctuate, Airline Stocks Slide

What’s Driving Travel Stock Slump?

Broader market pressures are weighing on travel stocks. The British benchmark FTSE 100 recently hit its lowest level in nearly two months, driven by declines in travel and leisure stocks. British Airways owner IAG dropped 6.1% after Delta’s warning, and overall, the travel sector in the UK fell by 3.1%.

Even geopolitical factors are playing a role. Volatility sparked by U.S. tariff policies, including increased duties on steel and aluminum imports, has added to market jitters. While the UK government has chosen not to retaliate, the uncertainty surrounding trade policies has only made things worse for already struggling travel stocks.

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