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11 Best Airline Stocks to Invest in 2025

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11 Best Airline Stocks to Invest in 2025

As we move into 2025, the airline industry is showing signs of robust recovery, making now the perfect time for investors to consider adding airline stocks to their portfolios. The airline sector, which was hit hard by the COVID-19 pandemic, has slowly been regaining its strength, thanks to a rise in both business and leisure travel.

If you are an investor looking to capitalize on the resurgence of air travel, now may be the best time to look into the best This article discusses on 11 of the top airline stocks to buy in 2025, providing a mix of stability, growth, and international exposure.

Airline stocks have gained significant popularity due to the recovery of the global travel industry.

Both business and leisure travel have returned to pre-pandemic levels, and the expectation is that this trend will continue through 2025. The surge in bookings has led to improved revenues for airlines, making them more attractive to investors.

Additionally, airlines are focusing on reducing operational costs, modernizing fleets, and enhancing customer service to improve efficiency and profitability. These strategic moves have made airline stocks to buy more appealing to investors seeking growth opportunities in a recovering market.

Best 11 Airline Stocks To Consider Buying in 2025:

Delta Air Lines (DAL)

Stock Price: $50.62 (as of March 2025)

Why It’s Popular Now: Delta Air Lines is one of the most reliable names in the airline industry. Since the post-pandemic rebound, Delta has consistently outperformed many of its peers, thanks to its focus on premium services and strong loyalty programs.

Delta’s modern fleet, efficient operations, and strong position in both domestic and international markets make it a top contender among the best airline stocks to invest in.

Delta has been successful in diversifying its revenue streams, focusing on both business and leisure travel. This makes it one of the best airline stocks to consider for those seeking a balanced portfolio of both domestic and global growth opportunities.

Southwest Airlines (LUV)

Stock Price: $42.89 (as of March 2025)

Why It’s Popular Now: Southwest Airlines remains one of the most popular choices for domestic travel in the United States, especially for budget-conscious travelers.

Known for its low-cost, no-frills approach, Southwest Airlines also offers flexible flight schedules, which has become especially appealing post-pandemic. Investors interested in airline stocks to buy will find Southwest a stable option in a turbulent market, as it continues to expand its operations, especially in the U.S. domestic routes.

Southwest has a strong customer service reputation, and its loyal customer base is likely to drive future growth, making it a solid choice among the best airlines to invest in for both short-term and long-term growth.

United Airlines (UAL)

Stock Price: $60.73 (as of March 2025)

Why It’s Popular Now: United Airlines has invested heavily in its international routes and fleet modernization, both of which are proving to be key drivers of growth. United is seen as one of the best airline stocks to buy for investors looking for international exposure. The airline has diversified its offerings by increasing transatlantic and transpacific routes, which has boosted its financial performance.

United’s strength lies in its large route network and its ability to cater to both business and leisure travelers. If you’re considering airline stocks to buy for global growth, United Airlines should definitely be on your radar.

American Airlines (AAL)

Stock Price: $14.50 (as of March 2025)

Why It’s Popular Now: American Airlines holds the title of the world’s largest airline, with a fleet size and network that surpasses many competitors. While the airline has faced challenges related to debt and restructuring, it is aggressively working to position itself for future growth. For investors who are looking for best airline stocks with significant long-term potential, American Airlines is worth considering.

Although its stock price is lower compared to its competitors, American Airlines’ scale and route network provide ample opportunities for expansion, particularly in North America and emerging markets.

JetBlue Airways (JBLU)

Stock Price: $13.30 (as of March 2025)

Why It’s Popular Now: JetBlue Airways has become a favorite among U.S. domestic travelers for its affordable pricing, excellent customer service, and relatively newer fleet. Known for its no-hassle policies, JetBlue has seen steady growth in the domestic market, and its expansion into international markets makes it one of the best airline stocks to buy in 2025.

JetBlue has successfully balanced a low-cost model with high-quality service, and its recent international expansion allows the airline to tap into the growing demand for travel beyond the U.S. This makes JetBlue one of the best airlines to invest in for a strong growth trajectory.

Alaska Air Group (ALK)

Stock Price: $55.43 (as of March 2025)

Why It’s Popular Now: Alaska Airlines has been a consistent performer in the airline industry, particularly on the West Coast of the U.S. Known for its excellent customer service and operational efficiency, Alaska Air is one of the best airline stocks for those looking for stability and growth in the domestic market.

Alaska Air is also investing heavily in technology to enhance its customer experience and improve operational efficiency. This focus on digital innovation and expanding its market share in key regions of the U.S. positions it well for continued growth in the next few years.

Ryanair Holdings (RYAAY)

Stock Price: $105.78 (as of March 2025)

Why It’s Popular Now: Ryanair is Europe’s largest low-cost carrier, and its business model is admired for its focus on efficiency and low operating costs. As Europe continues to recover from the pandemic, Ryanair’s competitive edge allows it to capture a larger share of the growing travel market. Its affordable pricing and strong operational performance make it one of the best airline stocks to invest in.

Ryanair’s efficiency in cutting costs while expanding its route network across Europe is a compelling reason to consider it among the best airline stocks to buy for European market exposure.

Air Canada (ACDVF)

Stock Price: $26.58 (as of March 2025)

Why It’s Popular Now: Air Canada is the dominant player in the Canadian airline market and has been at the forefront of the country’s travel recovery. Air Canada has also made significant investments in fleet modernization and customer service, which have positioned it for success as both business and leisure travel continue to rise.

Air Canada is expanding its international routes and improving its network to cater to the growing global demand for air travel. As a Canadian market leader with international aspirations, Air Canada remains one of the best airline stocks to buy in 2025 for those seeking both growth and diversification.

EasyJet (EZJ)

Stock Price: $13.75 (as of March 2025)

Why It’s Popular Now: EasyJet, one of Europe’s leading low-cost carriers, continues to thrive in the growing travel sector. EasyJet’s business model focuses on affordability, making it attractive to budget-conscious travelers. The airline’s strategic position in Europe, combined with its increasing market share, makes it a best airline stock for 2025.

EasyJet’s emphasis on cost control, expansion of its European routes, and strong recovery in leisure travel make it a solid investment for those looking for airline stocks to buy that have a strong domestic focus but international potential.

Lufthansa (LHA)

Stock Price: $13.21 (as of March 2025)

Why It’s Popular Now: Lufthansa is one of Europe’s largest and most established airlines. With a large global footprint and a solid reputation, Lufthansa is well-positioned to capitalize on the return of business and leisure travel worldwide. The airline continues to modernize its fleet and focus on sustainability, making it a good choice for investors who value long-term stability and growth.

Lufthansa’s strong presence in both European and international markets gives it an edge as the global travel market continues to recover. Its commitment to sustainability and modernizing operations makes it one of the best airline stocks to buy for those interested in international exposure.

Singapore Airlines (SIA)

Stock Price: $19.02 (as of March 2025)

Why It’s Popular Now: Singapore Airlines has always been synonymous with luxury and world-class service. The airline has maintained a competitive edge by continuing to invest in technology and sustainable aviation practices. With strong demand for travel in Asia and the global recovery post-pandemic, Singapore Airlines is one of the best airline stocks to invest in for those looking to gain exposure to the Asia-Pacific region.

As one of the premier airlines in Asia, Singapore Airlines is poised to benefit from growing middle-class demand for air travel in emerging markets. It is also strategically positioned to grow both domestically and internationally, making it an excellent addition to any investment portfolio.

Are We Seeing More Travelers?

Yes, we are witnessing a dramatic increase in travel demand, and it’s expected to continue growing into 2025. Consumers are eager to make up for lost travel time during the pandemic, and flexible work arrangements have contributed to increased travel. Additionally, the global tourism industry is experiencing a strong recovery as international borders open up and more countries relax travel restrictions. This pent-up demand for travel benefits airlines and makes airline stocks to buy highly appealing.

What Is the Trend in Airline Stocks?

The major trend in the airline industry for 2025 is sustainability. Airlines are increasingly investing in eco-friendly technologies, such as fuel-efficient aircraft and carbon offset initiatives. Additionally, airlines are incorporating digital tools to improve the customer experience, from flexible booking systems to personalized services.

These efforts help attract more customers while also positioning airlines for long-term growth. Investors are keen on airlines that focus on operational efficiency, sustainability, and modernization.

Is Airline Cost Going to Affect Stock Price?

As we move into 2025, airline stocks to buy will largely be influenced by the rising costs associated with running an airline. Airlines face several major expenses—fuel, labor, maintenance, and infrastructure—that play a direct role in their profitability. When these costs rise, it can put pressure on profit margins, which could cause airline stock prices to fluctuate. Let’s break down the factors that investors should watch when evaluating the best airline stocks for their portfolio in 2025.

The Impact of Fuel Prices on Airline Stock Prices

Fuel is one of the largest costs for airlines, and changes in oil prices can directly affect profitability. When fuel prices rise, airlines often have to raise ticket prices to keep their margins intact. However, higher ticket prices may lead to fewer passengers, potentially reducing demand and affecting revenue.

On the flip side, if fuel prices drop, airlines benefit from lower operational costs, which can improve their profitability. This may allow airlines to offer lower fares, which could increase demand.

Given the unpredictability of global oil markets, it’s important for investors to monitor fuel price trends closely. Airlines that are better at managing fuel costs—either through hedging strategies or by investing in fuel-efficient aircraft—are more likely to remain stable, making them airline stocks to buy for 2025.

Labor Costs and Workforce Management

Labor is another key expense for airlines. Wages, benefits, and potential disruptions from union negotiations or strikes can increase labor costs and hurt profitability. In the long term, airlines that can effectively manage their workforce and control these costs are better positioned to thrive.

Many airlines are investing in technology to automate certain processes, which can help reduce labor expenses. This shift toward automation not only cuts costs but also boosts operational efficiency. Airlines that embrace these innovations will likely improve their bottom line, making them attractive airline stocks to buy in 2025.

Efficiency and Cost-Cutting Measures

Airlines are constantly looking for ways to reduce costs and improve efficiency. One of the main ways they do this is by investing in more fuel-efficient aircraft. These modern planes use less fuel, helping airlines reduce operational costs over time. Additionally, airlines are focusing on streamlining operations to eliminate waste and maximize their resources.

By improving efficiency and cutting unnecessary expenses, airlines can protect their margins from rising costs. Investors looking for the best airline stocks should pay attention to those airlines that are prioritizing cost management and adopting smarter, more efficient technologies.

Ticket Prices and Consumer Demand

Airlines face a tricky balance when it comes to raising ticket prices. While they may need to increase fares to cover rising costs, doing so could make tickets less attractive to consumers, potentially reducing demand. On the other hand, if airlines maintain competitive prices while keeping their costs under control, they can continue to attract passengers and grow revenue.

In 2025, the demand for air travel is expected to increase, as both business and leisure travel pick up. Airlines that can keep costs in check while offering reasonable ticket prices will be in a strong position to meet this demand. These companies will likely see steady profits and a more stable stock price, making them attractive airline stocks to buy.

Conclusion

For 2025, airline stocks are one of the most compelling investment opportunities, as the industry continues to recover and grow. Whether you’re looking for best airline stocks to capitalize on domestic growth or international expansion, the companies listed above provide a solid foundation for investors. Delta, Southwest, United, and others are well-positioned to capitalize on the increasing demand for air travel. As the global travel market rebounds, these airline stocks to buy are primed for growth, offering an excellent opportunity for investors looking to diversify their portfolios.

FAQ


Will airline stocks recover?

Trent at Citi highlighted that major air carriers have a more favorable outlook, while discount carriers may need to focus more on balancing prices and reducing costs; however, Fitzgerald believes airlines are optimistic, and airline stocks appear promising as we head into 2025.


What airlines pay dividends?

Some airline dividend stocks, ETFs, and funds include Delta Air Lines, Inc., Southwest Airlines Co., Singapore Airlines Limited (ADR), Cathay Pacific Airways Ltd., and Deutsche Lufthansa AG (ADR – Level I).


How do you value airline stocks?

The most common valuation multiple for airline stocks is EV/EBITDA, where enterprise value (EV) represents the value of a company’s outstanding shares plus its net debt, which is total debt minus cash holdings.


Are airline stocks cyclical?

Several industries, such as automotive, airlines, construction, retail, manufacturing, and travel and tourism, are considered cyclical because their performance closely follows economic fluctuations, often reflecting the overall health of the economy.


Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research and consult with a professional before making any investment decisions. Stock investments involve risk, and you should only invest what you can afford to lose.

Amelia, a UK-educated corporate finance analyst with over three years in SEO and finance blogging, excels in creating insightful financial and lifestyle content. Her academic prowess blends with a passion for travel, enriching her writing with diverse cultural experiences, particularly during her year-end explorations.
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Disclaimer: This article is for informational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making investment decisions.