U.S. Global Investors (NASDAQ:GROW) is seeing a strong recovery and promising outlook for the airline industry heading into 2025.
Airline stocks have surged in recent months, buoyed by record holiday travel.
United Airlines, a key holding in U.S. Global Investors (NASDAQ:GROW)’ airlines ETF, has gained approximately 130% year-to-date, making it 2024’s top-performing airline stock.
“The airline industry has shown remarkable resilience, and we believe 2025 is shaping up to be a milestone year,” U.S. Global’s CEO Frank Holmes told shareholders.
U.S. Global Investors (NASDAQ:GROW) anticipates continued momentum into 2025, citing an International Air Transport Association (IATA) forecast projecting total airline revenues to reach $1.007 trillion, a 4.4% increase from 2024.
Passenger numbers are expected to hit a record 5.2 billion next year.
The Transportation Security Administration (TSA) screened a record 3.08 million passengers on December 1, the highest single-day total ever.
“With revenues expected to hit $1 trillion and passenger numbers soaring past 5 billion, we’re witnessing a powerful recovery driven by disciplined management and historic travel demand,” Holmes said. “This creates what we see as an attractive opportunity for investors seeking exposure to the sector’s growth.”
Meanwhile, gold’s march to new all-time highs is supported by growing global debt and expectations of interest rate cuts.
“The ongoing surge in global debt has amplified gold’s Fear Trade, which I define as a hedge against monetary instability and government overspending,” Holmes added.
“Gold is also driven by what I call the ‘Love Trade,’ particularly in India—the world’s most populous country, where gold has deep cultural significance as gifts.”
With U.S. interest payments on public debt exceeding $1 trillion annually, U.S. Global Investors believes gold and gold mining stocks remain attractive assets for investors seeking alternatives.
The company affirmed it will continue its monthly dividend payments into the first quarter of 2025.
The company’s board approved a dividend of $0.0075 per share per month for January through March 2025.
The monthly dividend translates to a 3.69% annualized yield, the company noted.