In this article, we will take a detailed look at the 12 Best Airline Stocks to Buy According to Hedge Funds.
Stability is slowly creeping into the air travel business, following weak demand in the first half of the year, which was attributed to tariffs and the US trade war. Bookings have stabilized after a sharp pullback in March and April, prompting major airlines to reiterate their full-year outlook and forecast stronger earnings growth.
Even as industry executives insist that travel demand has stabilized, passenger traffic in the US remains down from a year ago, leading to a decline in airfares. However, airline executives hold out hopes that domestic airfares will improve in the coming quarters amid plans to reduce supply for price-sensitive airline seats to avert discounting pressure.
“The message from airlines in 2Q25 has been one of stability, a theme we see in many of the demand indicators we follow,” Bank of America analysts wrote. “As such, we expect 2Q25 results to be largely in line with outlooks.”
Robust demand for premium services should allow companies to meet their revenue guidance. Likewise, the passage of the Trump tax and spending bill, complemented by progress in trade negotiations, is expected to boost consumer and corporate confidence in the second half of the year. In return, it is expected to drive up travel demand, which will benefit many airlines.
Analysts at Morgan Stanley believe second-quarter results “certainly shaped up better than feared” after multiple airlines issued concerns about dwindling demand. “There is no question that cracks remain in the macro even if the industry is not breaking apart,” they noted.
With that in mind, let’s look at the 12 Best Airline Stocks to Buy According to Hedge Funds.
Our Methodology
To compile the list of the 12 Best Airline Stocks to Buy According to Hedge Funds, we scanned various ETFs like US Global Jets ETF, Themes Airlines ETF, SPDR S&P Transportation ETF etc., focusing on companies with significant exposure to the aviation industry. We focused on stocks popular among elite hedge funds. Finally, we ranked the stocks based on the number of elite hedge funds that hold stakes in them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Best Airline Stocks to Buy According to Hedge Funds
12. Surf Air Mobility Inc. (NYSE:SRFM)
Number of Hedge Fund Holders: 2
Surf Air Mobility Inc. (NYSE:SRFM) is one of the best airline stocks to buy according to hedge funds. On June 26, the air mobility platform confirmed the closing of a direct offering for the purchase and sale of 10,800,002 shares priced at $2.50 a share.
The company accrued $27 million from the offering, before deducting placement agent’s fees and other offering expenses. The public offering is poised to strengthen the company’s financial position, with a portion of the net proceeds allocated towards debt repayment. A portion of the funds will also be allocated for general corporate purposes.
Surf Air Mobility Inc. (NYSE:SRFM) is one of the largest commuter airlines in terms of scheduled departures. It is also one of the largest U.S. passenger operators of Cessna Caravans. The company is also developing an AI-powered software platform for the regional air mobility industry and exploring electrified aircraft technology.
11. flyExclusive, Inc. (NYSE:FLYX)
Number of Hedge Fund Holders: 7
flyExclusive, Inc. (NYSE:FLYX) is one of the best airline stocks to buy according to hedge funds. On July 15, the private jet service provider confirmed it has maintained its ARGUS Platinum safety rating. The citation is awarded following evaluation of safety culture, risk management, and regulatory compliance.
The company has consistently maintained high recognition in private aviation since 2015 by completing all required audits and inspections. The status highlights the company’s adherence to safety protocols across organizational controls, operating procedures, training, and maintenance programs.
“At flyExclusive, safety isn’t just our top priority – it’s the foundation of how we operate,” said Matthew Lesmeister, Chief Operating Officer.
flyExclusive, Inc.’s (NYSE:FLYX) competitive edge stems from operating a vertically integrated, FAA-certified air carrier. It provides private jet services through on-demand charter, Jet Club, and fractional ownership options. Its fleet boasts 100 jets, consisting of Cessna Citation aircraft with light to large cabin sizes.
10. Copa Holdings, S.A. (NYSE:CPA)
Number of Hedge Fund Holders: 20
Copa Holdings, S.A. (NYSE:CPA) is one of the best airline stocks to buy according to hedge funds. On July 15, Citi analysts reiterated a ‘Buy’ rating on the stock and a $159 price target. The bullish stance comes amid expectations that the company capitalized on substantial traffic in June.
Copa Holdings has already confirmed that its June system-wide passenger traffic, measured in revenue passenger miles, was up 6.3% year-over-year. Likewise, capacity measured in available seat miles was up 5.3%. In return, the airline’s load factor increased 0.8 points to 87.5% affirming strong demand growth.
Citi has reaffirmed that Copa is its preferred carrier in the Americas, as underlying demand continues to outpace capacity increases. In June, the airlines ‘ RPM growth reached 6.4% with a load factor of $87.2%
Copa Holdings, S.A. (NYSE:CPA), through its subsidiaries Copa Airlines and Wingo, provides airline passenger and cargo services in Latin America. It operates from its hub in Panama City, offering flights to destinations across North, Central, and South America, as well as the Caribbean.
9. Ryanair Holdings plc (NASDAQ:RYAAY)
Number of Hedge Fund Holders: 22
Ryanair Holdings PLC. (NASDAQ:RYAAY) is one of the best airline stocks to buy according to hedge funds. On July 8, the airline reiterated that it is on course to recover most, but not all, of the 7% decline in average fares recorded last year.
That’s because the low-budget Irish airline is capitalizing on strong demand for travel this summer. The airline has seen strong booking trends, allowing it to benefit from rising ticket prices. Chief Executive Michael O’Leary is optimistic about the company’s after-tax profit for the first quarter ending in June, which is expected to double in line with the consensus estimate.
“Bookings into summer 2025 are strong, prices are rising,” O’Leary said. The executive has also downplayed the potential impact of heatwaves across Europe on the travel industry, insisting it is a temporary phenomenon.
Likewise, Ryanair plans to triple the number of passengers it carries from Modline airport in Warsaw to more than 5 million a year by 2030. Consequently, it is in the process of investing $400 million and doubling the number of aircraft based there.
Ryanair Holdings PLC. (NASDAQ:RYAAY) is an Irish low-cost airline group that provides scheduled passenger airline and cargo services. It is best known for its low fares and extensive route network across Europe, North Africa, and the Middle East.
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