Jet Fueled Income

Airlines have been here before. What happened last time?

In 2022, oil spiked 63% after the Ukraine invasion. Airlines drew down 25–31%. They recovered. In 2026, oil has spiked 95% after Iran — and some airlines are already down as much or more than they were back then (as of 4/3/2026).

The 2022 playbook: oil surged, airlines sold off, oil normalized, stocks recovered. The current spike is larger but the pattern looks familiar. The bet here is straightforward: can these airlines survive an oil shock? They did in 2022. For some investors, a DAL/ALK/AAL income note at ~34% P.A. with a 50% EKI barrier may be an interesting way to express that view. To breach the barrier, these stocks would need to fall another 44–61% from here — levels not seen outside of COVID.

Ways To Express This View

Income: 2 YR / DAL & ALK & AAL WoF / 3MNC / 50% EKI / 70% Coupon Barrier / ~34% P.A.

*Indicative terms only. Final pricing subject to market conditions at time of trade.

This material is for informational purposes only and does not constitute a recommendation. Data sourced from public sources and has not been independently verified. Past performance is not indicative of future results. Structured notes involve risks including potential loss of principal.