Airlines Long Climb Set to Continue In 2018

Investing.com - With eight straight years of profitability behind it, the U.S. airline industry is facing some headwinds in 2018, but is still expected to post higher profits.Even the prospect of higher jet fuel prices again didn't stop Delta Air Lines (NYSE:DAL) from raising its earnings outlook for the year.Overall, net profit for all U.S. carriers is expected to hit $16.4 billion in 2018, about 5.5% higher than last year, according to the trade group IATA. Profits rose in 2017 even with massive disruptions from two major hurricanes.Sustained profitability has fueled an enormous rally in stock prices over the past price years.The popular U.S. Global Jets exchange traded fund (JETS) gained about 25% in 2017, beating the S&P 500.Over the last five years, the ETF has doubled in price, touching the $200 level.A healthy economy has kept planes full and profit margins high for years. With traffic expected to rise 3.5%, airlines should be able to maintain pricing power even as they contend with rising jet fuel prices.