JETS ETF Faces $11 Billion Airline Supply Chain Crisis

Airlines face a crisis that strong demand can't fix—supply chain constraints are bleeding billions while creating unusual trading opportunities in a sector Warren Buffett called a "death trap."

October 14, 2025

Airlines face a crisis that strong demand can't fix—supply chain constraints are bleeding billions while creating unusual trading opportunities in a sector Warren Buffett called a "death trap."

🕒 Market Overview: Airlines lose over $11 billion in 2025 due to aircraft and parts shortages despite record demand.

🔄 Sector Insight: Strong passenger growth is bad news when carriers can't add capacity to monetize it.

💰 Today's Trade Idea: Bear Put Spread on JETS targets downside as structural issues persist through year-end.

SMART TRADE IDEA

Bear Put Spread on JETS

Trade Setup:  Buy $23 Put / Sell $21 Put, December 19, 2025, expiration

  • Cost:   $0.50 ($50 per spread)

  • Max Profit: $1.50 ($150 per spread

  • Breakeven:   $22.50 on JETS on December 19, 2025.

Management Plan: Roll down or take profits if JETS’ price reaches $21 per share before December 19, 2025.

Technical support for the JETS ETF is at the May 2025 $19.88 per share low, which is below the bottom strike price of the $23-$21 bear put spread. Airlines face challenges in October 2025, with the ETF in a bearish trend, having made lower highs and lower lows in an industry that one of the world’s most iconic investors calls a “death trap.”

NOTE: Remember, options trading involves substantial risk and is not suitable for all investors. Consider your investment objectives, financial resources, and experience level before implementing this or any options strategy.

DISCLOSURE: Trade recommendations may have changed since publication. Evaluate current market prices and risk/reward before acting. Trading involves significant risk and is not suitable for everyone. This is not personalized investment advice. Past performance doesn't guarantee future results. Publisher and contributors may hold positions in recommended securities. Readers assume full responsibility for their trading decisions. Consult a financial professional before investing.

Andy Hecht | Smart Analysis

Wall Street veteran and analyst covering technical and fundamental factors in markets across all asset classes for over four decades.

Warren Buffett once called airline stocks “hazardous to your investment health.” He had also called them a “death trap.” In October 2025, the U.S. government shutdown impacts the TSA, leading to increased problems for travelers, flight delays, and causing many potential travelers to cancel or delay their trips. The bottom line is that the U.S. airline industry faces challenges on multiple fronts, which directly impact its financial performance.

The U.S. Global Jets ETF (JETS) is a diversified ETF offering exposure to leading U.S. airlines.

The monthly chart shows JETS' wide range of $17.11 to $27.10 in 2025. At $25.42 on October 14, the EFT is not far from the 2025 high. The JETS ETF has made lower highs since early 2018. With the stock market facing turbulence, a government shutdown, and long-standing sector weakness, a vertical bear put spread on JETS may be optimal in the current environment. JETS is a liquid ETF product. At $25.47 per share, JETS has approximately $816.5 million in assets under management. The ETF trades an average of over 2.7 million shares daily and charges a 0.60% management fee.

The December 19, 2026, JETS $23-$21 vertical bear put spread at $0.50 or lower has at least a 1:3 risk-reward ratio.

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