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.
8. Frontier Group Holdings, Inc. (NASDAQ:ULCC)
Number of Hedge Fund Holders: 23
Frontier Group Holdings, Inc. (NASDAQ:ULCC) is one of the best airline stocks to buy according to hedge funds. On July 7, UBS reiterated a ‘Neutral’ rating on the stock but increased its price target to $4 from $3.50.
The price target hike comes as the research firm expects the company to deliver second-quarter results in line with guidance. As of May 20, Frontier Group was tracking according to guidance. UBS expects revenue per available seat mile to grow by 1.2%, compared to a low single-digit percentage growth scheduled according to the guidance.
UBS analysis also suggests that the company may have felt the full impact of inflation in the second quarter. Deteriorating demand might have triggered a reduced close in capacity, resulting in fewer sale-leaseback gains. Consequently, the cost per available seat increased by 23%, excluding fuel.
Frontier Group Holdings, Inc. (NASDAQGS:ULCC) is a holding company with a diverse portfolio of businesses. It is involved in several industries, including airlines, environmental remediation, industrial demolition, asset recovery, and commercial development. It also provides low-fare passenger airline services to leisure travelers in the United States and Latin America.
7. JetBlue Airways Corporation (NASDAQ:JBLU)
Number of Hedge Fund Holders: 27
JetBlue Airways Corporation (NASDAQ:JBLU) is one of the best airline stocks to buy according to hedge funds. On June 23, the airline announced two significant enhancements to its baggage experience. The company has unveiled a new mobile app feature that provides real-time updates on the status of checked bags.
The company also unveiled a new option that lets customers share the location of an Apple AirTag or Find My Network accessory placed inside checked luggage. The new capabilities are designed to give travellers greater visibility to their bags’ journey and help expedite recovery in the rare event of delay or mishandling.
“As part of our JetForward strategy, we’re focused on delivering the products and perks our customers want. This new in-app bag tracking feature, along with AirTag location sharing for baggage recovery, are designed to bring customers peace of mind when checking their bags with JetBlue,” said Carol Clements, JetBlue’s Chief Digital and Technology Officer.
The airline has already provided a mobile app via email for enhanced tracking of bags. The added visibility is designed to streamline the travel experience while also offering greater peace of mind.
JetBlue Airways Corporation (NASDAQGS:JBLU) is an airline company that provides air transportation services. It offers flights to various destinations, travel packages, car rentals, hotels, and vacation rentals.
6. SkyWest, Inc. (NASDAQ:SKYW)
Number of Hedge Fund Holders: 33
SkyWest, Inc. (NASDAQ:SKYW) is one of the best airline stocks to buy according to hedge funds. On June 18, Raymond James reiterated an ‘Outperform’ rating on the stock and a $125 price target. The bullish stance comes as the regional aircraft leasing company moves to replace 11 CRJ-900s and 5 CRJ-700s currently operated for Delta with 16 new E-175 aircraft.
The fleet replacement is scheduled to begin in 2027 and is expected to be completed by early 2028. The replacement comes as the CRJ aircraft have been operating under short-term extensions. The change is expected to provide the company with higher-quality long-term contracts.
In addition, SkyWest has expanded its E-175 purchase agreement with Embraer. The airline has committed to 60 deliveries, up from 10 and 50 optional. According to Raymond James, the development underscores the airline’s efforts to diversify its fleet mix and enhance future earnings streams.
SkyWest, Inc. (NASDAQGS:SKYW) operates as a regional airline and aircraft leasing company. It partners with major airlines, including United, Delta, American, and Alaska, to provide regional flight service connecting passengers to hundreds of destinations throughout North America. It also operates charter services through SkyWest Charter (SWC).
5. Southwest Airlines Co. (NYSE:LUV)
Number of Hedge Fund Holders: 40
Southwest Airlines Co (NYSE:LUV) is one of the best airline stocks to buy according to hedge funds. On July 14, the airline confirmed plans to add new travel destinations for the first time since 2021. St Thomas in the U.S. Virgin Islands is poised to become its ninth island destination in the Atlantic basin starting in 2026.
The airline is to offer travel services to Cyril E. King International Airport on the island as it seeks to meet customer demand for new destinations. The expansion will also allow the airline to enhance its service offerings. The addition of St. Thomas will allow Southwest Airlines to attract more leisure travelers and boost ticket sales.
Southwest Airlines also plans to offer new fare bundles and reconfigure its fleet. The plans entail offering premium seating options. It also plans to improve customer experience. In return, the airline aims to capture a larger market share and expand its revenue base.
Southwest Airlines Co (NYSE:LUV) is an American airline renowned for its low-cost, point-to-point service and commitment to providing friendly and efficient air travel. It operates short-to-medium haul flights within the United States, with some international service.
4. American Airlines Group Inc. (NASDAQ:AAL)
Number of Hedge Fund Holders: 43
American Airlines Group Inc. (NASDAQ:AAL) is one of the best airline stocks to buy according to hedge funds. On June 26, Citi reiterated a ‘Buy’ rating on the stock and an $18.25 price target. The research firm remains confident about the airline’s long-term prospects amid a resilient international long-haul and premium demand in the sector.
Nevertheless, Citi has warned about softness in the domestic main cabin demand across the entire airline sector, which could affect margins. However, the research firm has touted American Airlines’ operations and balance sheet, which are seen as moving in the right direction.
Citi expects American Airlines to benefit from significant co-branded card remuneration. Additionally, it has reflected declining leverage, which is a positive indicator of the airline’s financial health. According to the research firm, the company’s earnings leverage and free cash flow have improved significantly from the lows experienced in 2020/2021.
American Airlines Group Inc. (NASDAQ:AAL) is a major airline that provides passenger and cargo air transportation services. It operates an extensive network of domestic and international flights, serving over 350 destinations in more than 60 countries. In addition to flights, American Airlines also offers services such as baggage handling and ground services, and operates the AAdvantage loyalty program.
3. Alaska Air Group, Inc. (NYSE:ALK)
Number of Hedge Fund Holders: 56
Alaska Air Group, Inc. (NYSE:ALK) is one of the best airline stocks to buy according to hedge funds. On July 7, analysts at UBS initiated coverage of the stock with a ‘Neutral’ rating and a $49 price target. The stance comes amid expectations that the airline will deliver second-quarter results in line with guidance ranges.
UBS is optimistic that Alaska Air demand trends did stabilize in the second quarter. Consequently, the research firm expects the airline to deliver $1.56 in earnings per share, which is better than the consensus estimate of $1.53 and within the guidance range of $1.15 to $1.65.
Nevertheless, the research firm expects the company to deliver a 1% decline in revenue per available seat mile compared to the consensus estimate that projects a 0.9% decline. Likewise, UBS believes Alaska Air anticipated a year-over-year decline in RASMA in June due to increased industry capacity.
UBS analysis suggests that the airline maintained adequate load factors even though fares were lower in the quarter compared to the previous year. Additionally, Alaska Airlines may have faced pressure due to weakness in domestic main cabin performance, particularly in San Francisco.
Alaska Air Group, Inc. (NYSE:ALK) is a major airline primarily serving the West Coast of the United States, with a focus on connecting cities in Alaska, Hawaii, and the broader West Coast to over 100 destinations. It also operates a cargo service specializing in the shipping of various goods.
2. United Airlines Holdings, Inc. (NASDAQ:UAL)
Number of Hedge Fund Holders: 67
United Airlines Holdings, Inc. (NASDAQ:UAL) is one of the best airline stocks to buy according to hedge funds. On July 8, the airline confirmed plans to resume flights to Israel after a long one-month hiatus. The airline is to resume services between Newark Liberty International Airport and Tel Aviv starting July 21.
In a statement, the airline confirmed that the resumption is in line with a longstanding commitment to serving Tel Aviv. United Airlines has flown to Tel Aviv more than any other airline. The airline was forced to suspend operations and services in Tel Aviv following Israel’s bombing campaign against Iran.
United Airlines Holdings, Inc. (NASDAQ:UAL) is a major airline that provides passenger and cargo transportation services. It operates an extensive network of domestic and international flights, serving destinations across six continents.
1. Delta Air Lines, Inc. (NYSE:DAL)
Number of Hedge Fund Holders: 67
Delta Air Lines Inc. (NYSE:DAL) is one of the best airline stocks to buy according to hedge funds. On July 11, Bernstein SocGen Group reiterated an ‘Outperform’ rating on the stock and hiked its price target to $66 from $60.
The price hike comes on the heels of the airline delivering better-than-expected second-quarter results, with adjusted earnings per share coming in at $2.10, 2% above the consensus estimate. The company’s 12-month trailing revenue reached highs of $61.92 billion. The airline also affirmed its fiscal 2025 guidance as booking trends stabilize.
Delta Airline is also benefiting from premium demand remaining up 5%, compared to main cabin bookings. Its strategic partnership with American Express also continues to strengthen remuneration, which is up 8% and expected to reach highs of $8 billion. Bernstein SocGen expects industry-wide capacity discipline to support a robust year-end.
Delta Air Lines Inc. (NYSE:DAL) is a major airline company that provides scheduled air transportation for passengers and cargo. It operates an extensive network of routes, including domestic and international flights. It also offers services such as flight booking, baggage handling, and in-flight entertainment.
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