An airline ETF tracks an index of airline companies. An ETF is an exchange-traded fund, or a fund that tracks a particular index. Investors who buy shares of an airline ETF are trying to replicate the collective performance of the included airline companies.
As of April 2015, a new ETF called the U.S. Global Investors Jets ETF (ticker symbol JETS) is in the planning stages. It is expected to include the largest U.S. airlines, such as Delta and Southwest, as well as some of the more significant international airlines. This would be the first airline ETF available since 2011, when Direxion Airline Shares was shut down due to lack of profitability.