"This isn't the easiest sector to invest in. Most airlines are cash-strapped and held hostage to energy prices and other factors such as swine flu. Now, some major airlines are charging additional fees for travelling during peak travel days on top of those annoying baggage fees. With consumers looking to save cash, holiday travel is expected to decline this year. In fact, 2009 will likely be the first year in over a decade that holiday travel is down, costing airlines over $4 billion in the process," Benzinga Reports.

"That makes FAA look richly valued. The ETF is up 20% year-to-date, lagging the S&P 500 by 10%. FAA's bullish run may be grounded after the airlines start reporting fourth-quarter earnings, meaning an opportunity for a short may appear in the coming months," Benzinga Reports.

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Here is a look at the airline ETF below:

The investment (FAA) seeks to replicate, net of expenses, the NYSE Arca Global Airline Index. The fund will invest at least 80% of assets in common stocks, ADRs and GDRs that comprise the index. The index is a modified equal-dollar weighted index designed to measure the performance of highly capitalized and liquid US and international passenger airline companies identified as being in the airline industry. The fund is nondiversified.