Even as headline news remained bleak, the ETF managed to bounce strongly perhaps due to the major delta-hedge selling being exhausted.

FORBES: Days Of Technical Reckoning Ahead

In November, Delta and UAL shares soared after hedge fund Pardus Capital Management tried to push the two together (See "Airlines May Be On Course To Combine").

FORBES: Magazine Article

Many airlines routinely hedge themselves to a degree against rising fuel costs: Southwest Airlines, Northwest Airlines and Delta Air Lines are all reported to have reasonable protection from rising prices, at least for now.

ECONOMIST: America's airlines and the war