Top Airline Stocks to Watch in 2025

The airline industry has navigated a turbulent few years but is now experiencing a strong recovery. Pent-up travel demand, record revenues, and improving profitability in 2024 have positioned many U.S. airlines for a strong 2025. Investors are once again eyeing airline stocks as attractive opportunities. Below, we break down the top airline stock picks across ten key categories, from blue-chip carriers to budget airlines, using fresh data and financial metrics to inform our analysis. Short-term traders and long-term investors alike can use this guide to find value and momentum in the aviation sector.

Top Airline Stocks to Buy Now

• Delta Air Lines (DAL): Delta is a standout pick with record revenue in 2024 ($61.6 billion, up 6% YoY) and a solid net profit of $3.46 billion. It has already surpassed 2019 capacity levels and forecasts 2028 traffic ~20% higher than 2019. Analysts are overwhelmingly bullish – 23 out of 25 analysts rate Delta a “buy” or “overweight”. In its latest earnings, Delta beat expectations on EPS, reflecting operational strength. The stock trades at a modest P/E around 7–8, suggesting upside as travel demand remains strong.


• United Airlines Holdings (UAL): United delivered a record fourth-quarter 2024 profit and is carrying that momentum into 2025. Q4 revenue grew ~8% YoY to $14.7 billion, and full-year 2024 net income was roughly $3.1 billion (adjusted $3.5B). Impressively, United posted its best-ever first quarter performance in Q1 2025 with $387 million in net income, historically a seasonally weak period. Wall Street has noticed – the stock has a “Strong Buy” consensus (13 Buy, 2 Hold, 0 Sell ratings). United’s aggressive expansion in high-margin international routes and commitment to achieving double-digit pre-tax margins make it a top buy-the-dip candidate amid any market volatility.


• Alaska Air Group (ALK): Alaska is a mid-sized carrier with big execution. It ended 2024 with record revenue of $11.7 billion and one of the industry’s highest adjusted pretax margins (7.1%). Alaska even acquired Hawaiian Airlines in 2024 for $1.9 billion, aiming to unlock $1B in incremental profit over the next 3 years. Despite integration costs, Alaska still earned $395 million GAAP net income in 2024. The stock appears undervalued relative to its prospects – analysts have a Strong Buy consensus (approx. 10 buys, 1 hold) and have raised fair value estimates into the mid-$60s per share. For investors seeking a well-run airline with long-term growth plans (and even share buybacks resumed in late 2024), ALK is a top pick right now.

Best Airline Stocks for Long-Term Investment

• Southwest Airlines(LUV): Southwest used to be the customer-friendly airline though that may change with new seat and baggage policies. Still, the history had produced good financials and at last count it held a net cash position of $2.0 billion as of year-end 2024 and a modest 43% debt-to-capital leverage – far better than most legacy peers. While 2024 earnings were modest ($465 million net income, ~1.7% margin) due to higher labor and fuel costs, Southwest’s long-term track record of profitability (47 consecutive years pre-2020) and unrivaled low-cost structure position it well for steady growth. Warren Buffett-style investors will like how dividends and share repurchases complement each other.


• Delta Air Lines (DAL): Delta’s strong brand, operational reliability, and global network make it a cornerstone long-term holding. The airline gets top marks for customer delight and has built partnerships (Virgin Atlantic, Air France-KLM) that strengthen a competitive moat. Financially, Delta is focused on sustainable growth – it reduced debt by over $10 billion in the last two years and resumed its dividend in 2023, signaling confidence in cash flows. With pre-tax income of $5 billion in 2024 and substantial free cash flow, Delta plans to lead the industry in profitability and innovation (management is guiding to an 11–14% operating margin in Q2 2025). Diversified revenues from premium cabins, loyalty program, and cargo provide a buffer. Long-term investors can expect Delta to continue compounding value as air travel demand grows.


• Alaska Air Group (ALK): Alaska may be smaller than the “Big 4,” but it has a long history of prudent management and profitability. It has one of the best cost controls and labor relations in the industry, which helped it stay barely breakeven in 2023 and bounce back to healthy profits in 2024. Alaska’s focus on the U.S. West Coast and now Hawaii (via the Hawaiian Airlines acquisition) gives it a strong niche that can drive long-term growth. The company is targeting $1 billion in incremental pretax earnings by 2027 through synergy and network optimization. It also boasts a strong loyalty program and a younger, fuel-efficient fleet. With a solid balance sheet (debt-to-equity ~1.1 after recent financing) and a history of returning cash to shareholders (e.g. prior dividends, buybacks), Alaska is a high-quality long-term airline stock.

High-Flying Airline Stocks with Strong Fundamentals

• Delta Air Lines (DAL): Fundamentally, Delta is among the strongest U.S. carriers. In 2024 it achieved a $6.0 billion operating income (≈10% margin) on record revenue, and still reported $3.4B in free cash flow despite significant capex for new aircraft. Delta’s debt-to-equity ratio has improved to ~1.5:1 as it pays down pandemic borrowings. This leverage is reasonable given Delta’s consistent profitability (2024 net margin ~5.6%, well above peers like American’s 1.6%). It also has the highest credit rating among U.S. airlines. Such fundamentals give Delta flexibility to invest in product upgrades (Wi-Fi, airport lounges) and weather economic swings better than most rivals.


• Southwest Airlines(LUV): Southwest’s fundamentals remain a highlight. It holds $13.3B of cash and short-term investments vs. $11.3B of debt, yielding that net $2B cash position – an enviable cushion. Its debt-to-equity is ~0.7 (or 71.5% by one measure), reflecting far less leverage than legacy carriers which often exceed 150%. Southwest’s profitability took a hit from cost inflation, but it still managed a profit in 2024 and has plans to cut costs by $500M+ through efficiency initiatives. Importantly, Southwest consistently generates industry-leading operating cash flow (over $3.5B in 2024) that supports its capital spending on new Boeing 737s. A fortress balance sheet and disciplined cost management underpin LUV’s strong fundamentals.


• Alaska Air Group (ALK): Alaska earns a spot here as well – the carrier posted a 7.1% adjusted pretax margin in 2024, among the best in the industry. Even on a GAAP basis, its 4.6% pretax margin and $625M adjusted net income show solid core profitability. Alaska’s integration of Hawaiian Airlines was handled without blowing out costs or debt. In fact, Alaska cleverly raised $2B backed by its Mileage Plan (loyalty program) and retired $1.6B of Hawaiian’s debt, keeping leverage in check. The result is a balanced sheet with debt-to-equity around 1.1× and significant assets. Strong fundamentals like these give ALK the financial resilience to continue expanding and reward investors.

Dividend-Paying Airline Stocks to Watch

• Southwest Airlines(LUV): Southwest resumed dividends in Q1 2023 at $0.18 per share quarterly – the same pre-pandemic level. At the current stock price, that’s roughly a 2.4% forward yield. In 2024, Southwest paid out nearly half a billion in dividends. Ongoing dividend payouts including a $100M+ in Q1 2025 is encouraging to balance sheet watchers. Investors seeking income should watch LUV, as its dividend signals both management’s optimism and a commitment to shareholder returns. The yield is moderate, but few airlines offer any dividend at all – making Southwest stand out.


• Delta Air Lines (DAL): Delta started to pay out dividends in mid-2023, beginning with a quarterly payout of $0.10 and later upping it to $0.15 per share. The renewal came after Delta paid down over $10B in debt and stabilized earnings. While the yield is not high, it’s notable that Delta is prioritizing returning cash to investors even as it continues to invest in its business (new aircraft orders, IT upgrades). Delta’s dividend is likely to grow over time if profitability continues to improve – management has indicated a bias towards increasing shareholder returns as leverage comes down. For investors, DAL’s reinstated dividend is a sign of the carrier’s post-pandemic financial strength and an added incentive to hold the stock long-term.

Undervalued Airline Stocks Poised for Takeoff

• SkyWest (SKYW): SkyWest is a regional airline operator that flies for major carriers under contract. It’s a smaller company (market cap ~$3.3B) that might be flying under the radar of many investors. However, its recent performance has been strong – Q4 2024 revenue jumped 26% YoY, and SkyWest beat EPS estimates by $0.55. Morningstar raised its fair value for SKYW to $103.20 in March 2025, up from $75 a year prior. With the stock trading significantly lower (in the $40–$50 range in early 2025), that implies a large upside. SkyWest’s unique model (capacity purchase agreements that reduce revenue volatility) and return to profitability make it a classic “value” play. While not a household name, SKYW’s low P/E and improving outlook position it as an undervalued stock ready for takeoff, provided one has some patience.


• American Airlines (AAL): It may seem counterintuitive to call American “undervalued” given its challenges, but the stock’s metrics warrant a look for contrarians. AAL trades at a very low forward earnings multiple but it managed to eke out a $846 million profit in 2024 and is forecasting $2.25–$3.25 in EPS for 2025. The low valuation is due to American’s heavy debt and thin margins (2024 net margin 1.6%, and a loss in Q1 2025). Nevertheless, AAL has aggressively cut costs and stymied its debt by $15 billion from the 2021 highs. Any continued improvement in margins (perhaps via higher fares or cost initiatives) will most likely escalate equity value due to the leverage. It’s a high-risk play, but if the travel upcycle continues and American can expand its 2025 profits, the stock’s upside could be substantial from these beaten-down levels. Thus, AAL might be undervalued relative to its potential earnings power – albeit with the caveat that execution Enoch to be flawless.


• Frontier Group Holdings(ULCC): Frontier Airlines, an ultra-low-cost carrier, finally swung back to profitability in 2024 and the market hasn’t fully priced it in yet. Management reported a full-year 2024 net profit of $85 million, which was a nice turnaround after reporting numbers in the red for years. Q4 2024 was especially strong: revenue hit a record $1.0 billion (+12% YoY) and net income was $54 million for the quarter. Despite this turnaround, Frontier’s stock (ticker ULCC, fittingly) trades at a low revenue multiple and a discount to peers on EV/EBITDAR. It has a young fuel-efficient fleet and a very low cost per seat that permits above-average profit growth as demand rises. Frontier even attempted a merger play in early 2025 – it made a $2.16B bid for a bankrupt Spirit Airlines, which Spirit rejected in favor of restructuring. This signals Frontier’s ambitions to expand. If it remains standalone, Frontier’s lean cost structure and improving load factors could yield solid earnings in 2025, making the current valuation look cheap. For investors looking for a smaller-cap airline with high growth potential, Frontier ranks as an underrated gem.


• JetBlue Airways (JBLU): JetBlue has had a rough ride lately – the stock is near multi-year lows after posting a $(795) million net loss in 2024. JetBlue’s situation is somewhat unique: it’s in the middle of a proposed merger with Spirit Airlines and has been incurring heavy costs from that process and other one-time issues. In 2024, JetBlue’s revenue actually dipped 2% and it struggled with higher expenses, but if it can turn the corner, the upside could be significant. Analysts have a consensus Hold on average while Fitch revised their outlook to negative. However, that negativity also means very low expectations are priced in – JBLU trades around half of its pre-pandemic price and at a fraction of sales (Price/Sales ~0.3). JetBlue must integrate Spirit or otherwise improve its cost structure to scale and boost margins. This makes JetBlue a speculative value pick – undervalued if one believes it will navigate through the current storm. It’s not for the faint of heart, but the stock’s depressed price could offer large upside if a turnaround takes hold by 2026.

Top Airline Stocks Amid Market Recovery

• Delta Air Lines (DAL): Delta emerged from the pandemic in a position of strength and has been a leader in the recovery. Its 2024 revenues and profits not only recovered to 2019 levels but hit new records. The carrier’s premium revenue streams (business and international travel) are now coming back nagrusty, which boosts margins in an economic upcycle. Delta’s management reiterated a path to double-digit pre-tax margins, and the company is guiding a hefty $1.5–$2.0B pre-tax profit for Q2 2025 alone. In a rising market, Delta’s stock often outperforms due to its quality and earnings growth. For instance, as consumer and corporate travel recovered in 2023–24, DAL stock delivered strong gains off its lows. With the market looking past pandemic fears, Delta remains a top pick to capture further upside as travel demand expands.


• United Airlines (UAL): United has positioned itself as a recovery play with significant operational leverage to improving conditions. It undertook a major expansion plan (“United Next”) ordering hundreds of new jets to capitalize on demand growth. In the current recovery phase, United’s aggressive capacity adds, especially internationally, are paying off – it’s carrying more passengers and at higher yields. In 2024, United’s revenue passenger miles and capacity grew faster than peers, and it achieved a full-year pre-tax profit of $4.2B (7.3% margin). The stock is still reasonably priced (forward P/E under 7) and could see a re-rating as the market appreciates United’s earnings trajectory. United also reduced its adjusted debt by $3B in 2024, improving its balance sheet as business improves. Amid a market recovery, cyclical stocks like UAL tend to shine, and 2025 could see United stock climb further if the airline delivers on its goal of industry-leading profit growth.


• Southwest Airlines (LUV): While Southwest had some setbacks, it remains highly leveraged to the general travel recovery, especially domestic leisure travel. It is the largest domestic carrier, so as U.S. consumer confidence and spending rebound, Southwest benefits from more vacation and visiting-friends-and-family trips. In late 2024 and into 2025, Southwest has seen no signs of a slowdown in travel demand – even amid economic worries – according to CEO Bob Jordan. The airline anticipates strong leisure revenue trends continuing into 2025. Additionally, jet fuel prices, a major expense, have stabilized from the spikes of 2022, which should help Southwest’s margins in a recovering economy. If the broader stock market strengthens, investors may flock back to reliable names like LUV that historically outperform in upcycles. Its current depressed valuation (due to recent cost issues) provides room for a strong rebound on any good news, making it a top recovery pick.


• Alaska Air Group (ALK): Alaska’s exposure to both leisure and business travel in the West Coast, plus its newly expanded Hawaii network, give it multiple ways to ride a travel recovery. In 2024, Alaska already had record revenues, and that was despite a first-quarter fleet grounding issue. As those one-off issues fade, Alaska could see outsized gains from a full return of travelers. Moreover, Alaska traditionally performs well when consumer travel is strong – it has a loyal customer base and a high-quality product. With the U.S. economy growing modestly and unemployment low, domestic travel demand in 2025 is expected to remain robust. This macro backdrop favors ALK, which is still somewhat undervalued. In a bull market scenario, Alaska’s stock could climb as investors reward its consistent execution and earnings growth prospects (analysts expect ~28% earnings growth in 2025).

Airline Stocks with Strong Seasonal Performance

• Alaska Air Group (ALK): As its name suggests, Alaska Airlines has an unusual seasonal pattern that not many have picked up on. The airline’s strongest season is summer, when tourism to Alaska and the Pacific Northwest is at its peak (cruise season, national park travel). Alaska typically earns a disproportionate share of its profits in Q3 each year thanks to packed flights during June–August. In 2024, for instance, Alaska Air Group’s Q3 revenue and profit were significantly higher than winter quarters, aligning with its seasonal pattern (helped also by summer Hawaii travel). Astute investors get ahead of this, and so ALK share price can see strength in late spring and summer as bookings fill up. Additionally, Alaska’s acquisition of Hawaiian Airlines might balance its seasonality a bit (Hawaii travel is strong in winter too), but overall expect Q3 to remain Alaska’s power quarter. The company’s ability to manage capacity – like adding flights in summer and trimming in shoulder seasons – results in consistently strong seasonal margins. 


• Southwest Airlines (LUV): Southwest often sees very strong performance in Q2 and Q3 when families vacation (spring break, summer break). For example, in pre-pandemic times Southwest’s operating income in Q3 could be several times its Q1 levels. The airline’s point-to-point network allows it to ramp up flights around Thanksgiving, Christmas, and summer holidays effectively. In late 2024, Southwest swung to a $261M profit in Q4 (holiday travel season), a big improvement over the prior year’s holiday loss. However, note that operational mishaps (like the December 2022 meltdown) can affect seasonality – Southwest has invested in IT to avoid repeats. If it executes well, LUV is a stock that captures seasonal upticks nicely, making it one to watch before peak travel periods.


• Allegiant Travel (ALGT): Allegiant is a bit different because it focuses on flying from smaller cities to sun destinations mainly on off-peak days and so targets leisure travelers. Allegiant often has great performance in late Q2 (around June) and Q4 (winter holidays) with relatively lower activity in Q1 and September. The stock can be sensitive to seasonal demand: historically, ALGT has run up as booking trends for the summer look strong, then cooled off in the fall. Though Allegiant’s dividend suspension in 2024 and cost issues have weighed on it, its seasonal demand patterns are still intact – travelers in secondary markets flock to its low fares during peak vacation times. If jet fuel prices drop seasonally (as sometimes happens in shoulder seasons), Allegiant’s margins get an extra boost in peak quarters. 

Best Low-Cost Carrier Stocks to Invest In

• Southwest Airlines (LUV): Often considered the original low-cost carrier, Southwest today is one of the “Big 4” airlines but still very much follows a low-fare, low-cost model. It has the highest domestic market share, achieved by undercutting legacy airlines on price and offering customer-friendly policies (two free checked bags, no change fees). Southwest’s unit costs (CASM) are among the lowest for a network carrier, and it leverages high aircraft utilization. Even as it has grown, Southwest has remained ruthlessly efficient – for example, it operates a single aircraft type (737s) to simplify maintenance and training. This cost advantage enabled Southwest to be profitable for decades until 2020. As travel rebounded, Southwest stayed true to its value proposition, which helped fill its planes (record load factors on many routes). While recent labor cost increases are a challenge, LUV’s scale and cost discipline keep it a top low-cost investment. Plus, it has a strong balance sheet and is shareholder-friendly (as discussed earlier), giving it stability that smaller ULCCs lack. For a blend of low-cost model and blue-chip reliability, Southwest is in a class of its own.


• JetBlue Airways (JBLU): JetBlue is a hybrid – often offering a more premium experience (free Wi-Fi, TV at every seat) but at low fares akin to an LCC. It’s considered one of the best low-cost airlines for customer service. For investors, JetBlue’s appeal lies in its focus on key high-density markets (New York, Boston, Florida) with a cost structure below the legacy carriers. Pre-pandemic, JetBlue delivered solid profits by balancing low fares with high ancillary revenue (even more space seats, vacation packages). The stock is currently beaten down due to recent losses, but JetBlue’s planned merger with Spirit Airlines (SAVE) could be transformative. If it goes through (pending regulatory approval), the combined airline would be the 5th-largest in the U.S., blending JetBlue’s brand with Spirit’s ultralow costs. That scale could unlock significant synergies and create a true national low-cost competitor. Even on its own, JetBlue is working to cut expenses and adjust capacity (it exited the Northeast Alliance with American Airlines in 2023) to return to profitability. For those betting on the low-cost model long-term, JetBlue offers a potentially huge upside if it can integrate Spirit and achieve the cost savings (estimated in the hundreds of millions). It’s a bit of a wildcard, but definitely one of the most watched low-cost stocks going into 2025.


• Frontier Group Holdings (ULCC): Frontier is a pure ultra-low-cost carrier, perhaps the closest equivalent to European Ryanair in the U.S. market. It operates with an extreme low-cost mentality: high-density seating, fees for extras, point-to-point leisure routes, and very low base fares. This model can produce high margins when done right – indeed, Frontier’s Q4 2024 operating margin was 5.1% (pre-tax) which is decent, and it swung to a profit as mentioned. Frontier has been growing, adding new routes to underserved cities and vacation spots. It’s also investing in technology (like an enhanced website and app) to push more ancillary sales (bags, seat selection). The stock, trading under the ticker ULCC, is essentially a pure play on the ULCC model in the U.S. With fuel-efficient Airbus A320neo jets and a young fleet, Frontier’s costs should remain very low. If demand stays strong, Frontier’s earnings could scale up significantly, making it an attractive investment. The airline even attempted to consolidate the ULCC space by bidding for Spirit in early 2025, as noted (though Spirit opted to restructure independently). Frontier’s management clearly aims to be a leader in the budget travel segment. Investors who want exposure to a true low-cost carrier should certainly consider Frontier, as it embodies the high-growth, high-efficiency traits of the ULCC model.


• Spirit Airlines (SAVEQ) (Post-bankruptcy): Spirit’s story took a turn with its Chapter 11 filing in Nov 2024 and emergence in Mar 2025. Historically, Spirit was the largest ULCC in the U.S., notorious for its ultra-cheap fares and fee-based model. By 2019 it had industry-leading margins. However, the pandemic and competitive pressures hurt it, and the failed merger attempts (with Frontier, then JetBlue) plus high debt forced the bankruptcy. Now, Spirit has restructured – wiping out $795M of debt and getting $350M in new equity funding – and is attempting a remarkable pivot: rebranding as a more premium airline to attract higher-paying customers. This is a bold strategy change for an ULCC. For investors, Spirit’s new stock (currently over-the-counter as SAVEQ) is speculative. The airline is essentially a turnaround play, hoping that a leaner balance sheet and new focus will restore profitability. It still has its low-cost DNA but is tweaking the product. If Spirit can indeed boost revenue per passenger by 13% as it projects, it might carve a unique spot as a “high-value, low-fare” carrier. At the moment, analysts are cautious (consensus was a Moderate Sell during bankruptcy, with price targets around $2), but an improved cost structure post-reorg could surprise. Spirit is one to watch in the low-cost arena, not necessarily a buy yet for most investors, but its fate will influence the whole ULCC sector (and JetBlue’s plans).

In summary, low-cost carriers offer high-growth potential but can be volatile. Southwest provides the steady, proven option; JetBlue and Frontier offer higher risk/reward with growth or merger synergies; Spirit is a special situation emerging from distress. Investing in this segment requires belief in the continued strength of budget air travel. Given the appetite for affordable travel remains huge (as evidenced by packed Spirit and Frontier flights even in 2024), the best LCC stocks could climb significantly if they execute well.

Major Airline Stocks Leading the Industry

• Delta Air Lines (DAL): Delta is widely regarded as the best-managed of the major airlines and often sets industry standards. It leads in operational reliability and customer service (frequently topping on-time and customer satisfaction rankings). Financially, Delta is leading on many fronts: it generated $61.6B revenue in 2024, the highest of any U.S. airline, and earned $3.5B net – far outpacing American’s $846M. Delta’s focus on premium offerings (Delta One suites, Comfort+ class) and its successful loyalty program (SkyMiles, with credit card partnerships) have boosted revenue quality. It’s also a leader in international alliances (as a key member of SkyTeam) and owns stakes in several foreign airlines. In 2025, Delta is guiding to industry-leading financial results, and its plans (like free Wi-Fi for all passengers) often pressure competitors to follow. As a stock, DAL is seen as a benchmark – with most analysts rating it a strong buy. Delta’s leadership in both market share (especially across the Atlantic) and financial performance cements its status as a top major airline investment.


• United Airlines Holdings (UAL): United has taken a bold approach to regain industry leadership. Historically considered a bit behind Delta, United is now making aggressive moves – ordering hundreds of new aircraft (the largest fleet renewal in its history) and expanding its route map, particularly internationally to Asia and Europe. This has paid off with United capturing significant pent-up demand; in 2024 it flew more capacity than 2019 and achieved record profits in Q4. United’s CEO Scott Kirby has outlined a plan to reach 10%+ pre-tax margins by 2026, which would put it on par with Delta’s profitability. The airline also leads in some niches: for example, United is the largest carrier in the trans-Pacific market and has a hub network well-positioned for corporate travel (with strength in New York, Chicago, San Francisco). In operational terms, United still has areas to improve (like baggage handling, where Delta excels), but it’s clearly leading the charge on growth. The stock has rallied as United proved skeptics wrong with its strong earnings; with a consensus price target around $87 (high of $140 from Morgan Stanley), analysts see United narrowing the gap with Delta. As a major airline stock, UAL is demonstrating leadership by pushing the industry forward in capacity, fleet modernization, and profit ambition.


• American Airlines Group (AAL): American is the largest airline by several measures (fleet size, passengers carried globally) and thus inherently an industry leader, though its financial performance has lagged. In 2024 American had $54.2B in revenue – just a bit behind Delta – and it still carries more passengers on domestic routes than any other carrier. Where American leads the industry is in sheer network breadth: with its Oneworld alliance and partnerships (like with Qatar Airways and others), AAL offers connectivity to virtually every corner of the globe. However, American’s leadership is tested by its heavy debt and lower margins. The company is taking steps to lead on cost containment – it announced plans for $250M in cost savings in 2025 by controlling headcount and capex. American is also a leader in Latin America routes (through its Miami hub) and has a strong position on the U.S. East Coast (Charlotte, D.C., Philadelphia). For investors, AAL might not be the profit leader, but as the biggest airline, its stock often moves with overall industry sentiment. It’s a key component of airline ETFs and tends to reflect macro trends. Any industry-wide initiative (safety policies, customer programs) usually involves American at the forefront due to its scale. If American can improve its financials, its stock could finally start reflecting the fact that it’s a giant in the sky. For now, it leads in size, if not in profitability.


• Southwest Airlines (LUV): While not a “legacy” carrier, Southwest is absolutely a major U.S. airline – in fact, it carried more domestic passengers than any other airline pre-pandemic. Southwest leads the industry in the leisure travel segment and short-haul markets. It has essentially cornered the market on many secondary airports (e.g., it dominates at places like Chicago Midway, Dallas Love Field, Oakland) providing convenient alternatives to congested hubs. Southwest’s operational strategy (point-to-point flying rather than hub-and-spoke) was innovative and led many others to copy parts of it. In 2025, Southwest is aiming to lead in operational recovery: after a well-publicized operational failure in late 2022, it’s invested heavily in IT and scheduling optimization to ensure reliability. The airline’s recent metrics like on-time performance have improved, and it was recognized as one of North America’s most on-time airlines. Southwest also led by example in returning cash to shareholders, as noted (the first to pay dividends again). Within the industry, Southwest’s cost efficiency and customer loyalty (their Rapid Rewards program is top-rated) set a standard. The stock is considered a bellwether for U.S. domestic air travel. When Southwest does well, it often means the U.S. consumer is doing well. Thus, LUV remains a leading indicator and investment when betting on the health of the industry.

Together, these major airline stocks command the lion’s share of the market and often move in tandem with industry trends. Each leads in different ways – Delta in profitability and service, United in growth initiatives, American in scale, Southwest in low-cost dominance. A balanced airline portfolio would likely include several of these names to capture the performance of the sector’s leaders. As of 2025, the majors are enjoying a rebound, with combined revenues and profits approaching or exceeding pre-2020 levels, showing that they have led the U.S. airline industry out of its deepest crisis and into a new phase of growth.

Airline Stocks with Positive Analyst Ratings

• Delta Air Lines (DAL): Delta is a favorite among analysts. It currently enjoys a consensus Strong Buy rating. For instance, U.S. News reported that 23 out of 25 analysts covering Delta have a Buy or Overweight on the stock. Such unanimity is rare – it indicates analysts overwhelmingly believe in Delta’s investment thesis. Price targets for DAL are generally well above the current price (the average target is around $60, vs. stock in the $40s). Analysts cite Delta’s superior earnings recovery, margin leadership, and shareholder returns (dividend, debt paydown) as reasons for their bullish stance. When nearly 92% of analysts are positive, that’s a strong vote of confidence that cannot be ignored.


• United Airlines (UAL): Analyst views on United have improved dramatically alongside its results. The consensus has shifted to Strong Buy, with one source noting 13 Buy ratings vs just 2 Holds and no Sells. Another analysis showed about 80% of analysts rating UAL as Buy/Strong Buy. This optimism stems from United’s earnings beats and good guidance. Banks like Bank of America and Morgan Stanley have issued $100+ price targets on UAL with Buy ratings, indicating significant upside from current levels in the $50s. Analysts are effectively saying United is executing well on its plan and should continue to outperform. If one likes to “follow the Street,” UAL is clearly on the recommended list in 2025.


• Alaska Air Group (ALK): Alaska doesn't get the same headlines as the big three, but analysts quietly love this stock. TipRanks data shows ALK has 10 Buy ratings to 1 Hold – essentially a Strong Buy consensus. The average price target is around $63, about 25% above the current share price, with some targets as high as $90. Wall Street appreciates Alaska’s consistent execution and sees the Hawaiian Airlines acquisition as a value creator. With a smaller analyst coverage universe (~13–16 analysts), Alaska still manages to convince nearly all of them of its upside. The company’s reliable profit generation and shareholder-friendly moves (like buybacks) contribute to this positive outlook. For an investor, ALK offers the rare combination of mid-cap growth and broad analyst endorsement.


• Sun Country Airlines (SNCY): Among the lesser-known airlines, Sun Country has a surprisingly positive analyst following. As mentioned earlier, 7 of 9 analysts covering SNCY rate it a Buy/Overweight. Two rank it a Hold, and none recommend selling. Sun Country’s successful niche strategy and the growth runway analysts see for it (being a $500M market cap company, it has room to expand). Yes, small-cap stocks are inherently more risk than cash cow titans but analysts seem to be on the same page that SNCY’s delivering. 


• Copa Holdings (CPA): Although Copa is a Panama-based carrier, it’s traded on the NYSE and sometimes included in U.S. airline discussions. It merits mention because nearly all analysts covering CPA give it a “Buy”. In fact, it was highlighted as an “earnings gainer” with a fair value well above its trading price. The enthusiasm for Copa underscores that some international-focused airlines, too, have strong backing. (For U.S.-centric investors, Copa’s inclusion signals that even foreign carriers can be considered when thinking of “airline stocks with top ratings.”)