Best Airline Stocks to Watch or Invest In Right Now
Written by
Aja McClanahan
Edited by
Joe Evans
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The airline industry is flying back into the spotlight. After years of turbulence due to travel restrictions and health anxieties, travel demand is booming and airlines are adapting with improved operations and stronger balance sheets.
For investors, that means one thing: it might be time to revisit the best airline stocks to watch or invest in right now.
Whether you’re looking for long-term growth, dividends or short-term upside, this guide breaks down the top airline stocks to consider in 2025.
Best Airline Stocks in 2025
Here are some of the most talked-about and top-performing airline stocks this year:
| Airline | Ticker | Market Cap | Dividend Yield | One-Year Return | Key Strength |
|---|---|---|---|---|---|
| Delta Air Lines | DAL | $25 Billion | N/A | +15.2% | International travel rebound and premium service model |
| Southwest Airlines | LUV | $17 Billion | ~2% | +12.8% | Low-cost leader with a loyal customer base |
| United Airlines | UAL | $18 Billion | N/A | +13.7% | Strong international network and fleet upgrades |
| Alaska Air Group | ALK | $6 Billion | ~1.5% | +11.1% | Operational efficiency and high customer satisfaction |
| Ryanair Holdings | RYAAY | $25 Billion | N/A | +19.5% | European ultra-low-cost model with strong growth |
Why Invest in Airline Stocks?
Airline stocks are cyclical, but they offer big potential when timed right. Here’s why investors are keeping a close eye on them:
- Post-Pandemic Travel Boom: Leisure and business travel are back.
- Cost-Cutting Measures: Airlines are leaner, more efficient and more profitable.
- Fleet Modernization: Investing in fuel-efficient aircraft to cut costs.
- Pricing Power: Strong demand allows airlines to raise ticket prices.
For the right investor, airline stocks can be a smart play as folks get back to regularly traveling.
Airline Stocks vs. Other Investment Options
| Investment Type | Risk Level | Growth Potential | Volatility | Income Yield |
|---|---|---|---|---|
| Airline Stocks | Medium-High | High | High | Low to Medium |
| Travel ETFs | Medium | Medium | Medium | Medium |
| Tech Stocks | High | High | High | Varies |
| Utility Stocks | Low | Low | Low | High |
Airline stocks may carry more risk than other sectors, but they can offer outsized rewards in strong economic cycles.
Risks of Investing in Airline Stocks
Before boarding the airline stock train, understand the risks:
- Fuel Price Volatility: Jet fuel is one of the largest costs.
- Economic Sensitivity: Travel spending drops in recessions.
- Labor Disputes: Strikes and shortages can affect performance.
- Debt Levels: Many airlines took on debt to survive the past few years.
Trends Shaping Airline Stocks in 2025
The aviation industry is evolving fast. Here are the trends shaping airline stocks now:
- Surging International Travel: Borders are open and travelers are eager.
- AI-Powered Logistics: Airlines are using AI for scheduling and pricing.
- Sustainability Focus: More investment in electric planes and SAF (sustainable aviation fuel).
- Premium Travel Demand: Business-class and luxury segments are outperforming.
Investors who understand these dynamics are better positioned for long-term gains, despite short-term dips due to political uncertainties.
How to Buy Airline Stocks
Not sure where to begin? Here’s how to start investing in airline stocks:
- Choose a brokerage platform — Options include Fidelity, Charles Schwab, Robinhood and E*TRADE.
- Search the stock ticker — Examples: DAL, LUV, UAL.
- Check the fundamentals — Review earnings, debt levels, fleet updates and route strategy.
- Decide how much to invest — Start small with fractional shares if needed.
- Diversify your holdings — Consider mixing airlines with travel ETFs or other transport stocks.
Final Take to GO: Should You Buy Airline Stocks Now?
The best airline stocks in 2025 reflect a renewed industry ready for lift-off. With global travel returning to full strength, investors have a chance to benefit from this cyclical upswing. From industry leaders like Delta to high-growth dice rolls like Ryanair, the skies are looking friendly again.
Next step? Open a brokerage account, start researching top picks, and take flight with a diversified approach.
Need more insight? Explore our intro guide to investing or how to build a recession-proof portfolio to round out your strategy.
FAQs: Best Airline Stocks
Learn more about the best airline stocks so you can make an informed decision about whether or not to include them in your portfolio.- What are the best airline stocks for beginners?Â
- Southwest (LUV) and Delta (DAL) are beginner-friendly picks with strong brands and financial stability.Â
- Do airline stocks pay dividends?Â
- Some do, like Alaska Air and Southwest, but yields are typically modest.Â
- Are airline stocks a good long-term investment?Â
- They can be, especially during recovery cycles. But they tend to be more volatile than other sectors.
- How do airline stocks compare to travel ETFs?Â
- Travel ETFs offer diversified exposure to airlines, hotels, cruise lines and more -- a great option for reducing individual stock risk.Â
Information is accurate as of May 23, 2025.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
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- FAA.gov "The Economic Impact of U.S. Civil Aviation"
- CNN "Airlines seen making $1 trillion for the first time in history"
- World Travel & Tourism Council "U.S Economy Set To Lose $12.5BN In International Traveler Spend this year"
- CNBC "Airlines expected to cut 2025 outlooks as travel demand falters"
- Delta News Hub "Delta, JetZero partner to design the future of air travel by advancing first-of-its-kind, 50% more fuel-efficient aircraft for domestic and international routes"
- AI Magazine "How AI is Transforming the Airline Industry"
