10 Cheap Travel Stocks to Buy According to Analysts

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1. Alaska Air Group, Inc. (NYSE:ALK)

Forward Price-to-Earnings: 14.97

Upside Potential: 21.99%

Number of Hedge Funds: 56

Alaska Air Group, Inc. (NYSE:ALK) is included in our list of the 10 Cheap Travel Stocks to Buy According to Analysts.

On July 23, 2025, Alaska Air Group, Inc. (NYSE:ALK) released its Q2 2025 results. The company reported adjusted EPS of $1.78, which exceeded guidance. Strong premium class performance and a profitable quarter from its Hawaiian assets helped the company earn revenue of $3.7 billion. The adjusted net income for the quarter reached $215 million.

Ahead of the earnings release, UBS maintained its ‘Neutral’ rating and $49 price target, citing the growing optimism regarding the airline industry. Validating the analyst’s optimism, Alaska Air Group, Inc. (NYSE:ALK)’s premium revenue grew 5% YoY, driving 35% of its total sales.

Looking ahead, Alaska Air Group, Inc. (NYSE:ALK) expects FY25 EPS of at least $3.25. This is attributed to the Alaska Accelerate initiative and continued synergy realization. Furthermore, its new loyalty program, premium credit card launch, expansion of international long-haul network from Seattle, and a 17-aircraft 787 fleet in the pipeline are cited as other key growth drivers.

While a softer macro demand was noted during the quarter, Alaska Air Group, Inc. (NYSE:ALK) expressed growing confidence due to recent booking upticks and capacity discipline, reaffirming its target of $10 EPS by 2027 and $1 billion in expected incremental profit.

With its Alaska Airlines, Hawaiian Airlines, and Regional segments, Alaska Air Group, Inc. (NYSE:ALK) offers air transportation services. It is included in our list of cheap travel stocks.

While we acknowledge the potential of ALK to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ALK and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 14 Cheap Transportation Stocks to Buy According to Analysts and 12 Best Ethical Companies to Invest in 2025.

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