In this article, we will discuss: 8 Best Airline Stocks to Buy Heading into 2026.
According to a USA Today report, Air travel challenges across the United States will persist despite the government’s reopening, as the Federal Aviation Administration (FAA) works through substantial manpower shortages following the country’s longest-ever shutdown. Late on Wednesday, President Donald Trump signed the funding bill, ending the shutdown that started on October 1 and causing tens of thousands of cancellations and delays. The FAA had previously mandated flight reductions at 40 major airports, which were initially scheduled to increase to 8% on November 13 and 10% on 14th. However, as controller absences decreased, the reductions are still at 6%.
Nearly 1,000 flights were canceled and over 450 were delayed nationally as of November 13, with Chicago O’Hare facing severe disruptions. According to FAA authorities, sustained improvements in staffing patterns are necessary for full normalization. Transportation Secretary Sean Duffy stated that a recovery plan will be developed once safety teams confirm positive signals.
Ed Bastian, CEO of Delta Air Lines, told CNBC that he anticipates the system being “largely back to normal this weekend,” despite the anticipated financial repercussions of the closure. According to Delta, it expects to reach full capacity in “the next few days.”
While near-term volatility has come down, a rebound in growth remains debated. As per a Bloomberg report from November 14, Grace Lee, a senior portfolio manager at Columbia Threadneedle Investments, asserted:
“Because the shutdown is finished for now, we’ve avoided the worst of the potential outcomes, which was Thanksgiving week mayhem.”
However, David Wagner, portfolio manager at Aptus Capital Advisors, was slightly cautious and noted:
“Right now, the hope for airline stocks is that a consumer resurgence will come into play over the next few quarters due to the tax breaks from Trump’s bill. But if that cannot spur some growth in air travel, the group may catch some turbulence in the near term.”
With that backdrop, here are the 8 Best Airline Stocks to Buy Heading into 2026.
Our Methodology
To compile our list of the 8 Best Airline Stocks to Buy Heading into 2026, we utilized online screeners to generate an initial list of all U.S.-listed airline companies. From this pool, we selected stocks with a good potential upside as of November 20 and the best hedge fund sentiment, as assessed using Insider Monkey’s database of hedge funds as of Q2 2025. Finally, we ranked these stocks in ascending order by upside and provided data on hedge funds that hold stakes in them.
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8. Ryanair Holdings plc (NASDAQ:RYAAY)
Analysts’ Upside Potential as of November 20: 6.2%
Number of Hedge Fund Holders: 23
Ryanair Holdings plc (NASDAQ:RYAAY) is one of the Best Airline Stocks.
The Fly reported on November 4, 2025, that Harry Gowers, a JPMorgan analyst, lifted the price target for Ryanair Holdings plc (NASDAQ:RYAAY) from EUR 30 to EUR 30.50. He kept an Overweight rating on the shares.
Separately, on November 3, 2025, Reuters reported that Ryanair Holdings plc (NASDAQ:RYAAY) stated that it might recover last year’s 7% fare drop following an increase in its six-month FY 2026 after-tax profit to EUR 2.54 billion, compared to analysts’ projections of EUR 2.5 billion. The airline boosted its passenger traffic projection, citing earlier-than-expected Boeing aircraft deliveries and stronger demand.
According to Reuters, Ryanair Holdings plc (NASDAQ:RYAAY)’s CEO Michael O’Leary later told analysts that a solid Christmas season might lead to an 8% year-over-year increase in fares, despite the airline’s earlier projection that it might recover the average fare decline for the fiscal year ending March 31. According to the report, Ryanair Holdings plc (NASDAQ:RYAAY) secured fuel hedging by taking advantage of a price decline, and O’Leary stated that Boeing’s manufacturing had “transformed.”
Ryanair Holdings plc (NASDAQ:RYAAY) forecasts FY26 passengers to go up by 3% due to early Boeing deliveries and strong first-half demand, but it forecasts challenging fare comparisons in the second half of the year.
It is anticipated that FY26 traffic would surpass 207 million passengers, with B-8200 deliveries, fuel hedging, and cost restrictions expected to balance minor unit-cost increases. Ryanair Holdings plc (NASDAQ:RYAAY) warns of risks from macroeconomic shocks, European ATC disruptions, and geopolitical events but anticipates recovering last year’s 7% fare decrease.
Ryanair Holdings plc (NASDAQ:RYAAY) is Europe’s leading low-cost airline. It operates over 3,600 flights per day to more than 240 destinations in 40 countries.
7. LATAM Airlines Group S.A. (NYSE:LTM)
Analysts’ Upside Potential as of November 20: 18.6%
Number of Hedge Fund Holders: 23
LATAM Airlines Group S.A. (NYSE:LTM) is one of the Best Airline Stocks on our list.
The Fly reported on November 19, 2025, that Barclays analyst Pablo Monsivais maintained an Overweight rating while raising the company’s price target from $55 to $60. The firm states that the target increase was based on the company’s better-than-expected quarterly performance.
Separately, on November 14, 2025, LATAM Airlines Group S.A. (NYSE:LTM) announced its third-quarter 2025 financial results. LATAM Airlines reported $3.856 billion in total operating revenue for the third quarter of 2025, a 17.3% increase over the same period in 2024. Adjusted EBITDAR increased 38.9% to $1.150 billion, with a margin of 29.8%. The parent company’s adjusted operating income was $698 million, while net income increased by 25.8% to $379 million.
Adjusted passenger Cost per Available Seat Kilometre (CASK) ex-fuel jumped to 4.4 cents, 11.6% growth YoY, and passenger Revenue per Available Seat Kilometre (RASK) grew to 7.6 cents by 8.4% YoY. The load factor reached 85.4%, while consolidated capacity increased by 9.3% annually.
The company’s year-to-date net income was $1.0 billion. The cancellation of 30.22 billion Treasury shares was approved by shareholders, leaving 574.22 billion shares outstanding. Furthermore, LATAM raised adjusted EBITDAR to $4.00-$4.10 billion in its updated full-year 2025 outlook.
LATAM Airlines Group S.A. (NYSE:LTM) is one of the largest airline groups in South America and globally. It operates passenger and cargo businesses through an extensive network connecting five domestic markets (Brazil, Chile, Colombia, Ecuador, and Peru) and internationally.
6. American Airlines Group Inc. (NASDAQ:AAL)
Analysts’ Upside Potential as of November 20: 22.5%
Number of Hedge Fund Holders: 43
American Airlines Group Inc. (NASDAQ:AAL) is among the Best Airline Stocks.
David Tepper, the billionaire hedge fund manager at Appaloosa Management, added 9.25 million shares of AAL to his portfolio in the third quarter, according to a 13-F filing with the Securities and Exchange Commission on 13 November, as reported by Barchart. As of November 18, American Airlines Group Inc. (NASDAQ:AAL)’ shares were down more than 28% year to date.
Earlier, Thomas Fitzgerald CFA, a TD Cowen analyst, maintained a buy rating on American Airlines Group Inc. (NASDAQ:AAL) on October 27, with a price objective of $18.00.
In its Q3 2025 results in late October, American Airlines Group Inc. (NASDAQ:AAL) reported an adjusted loss of $0.17 per share, which was substantially higher than analysts’ projections of a $0.27 loss. The business forecasted a return to profitability in Q4, with adjusted EPS of $0.45 to $0.75, exceeding the $0.33 estimate. Premium unit revenue once again outpaced the main cabin, since there was persistent strong demand for both business and leisure travel.
American Airlines Group Inc. (NASDAQ:AAL) is the world’s largest airline by aircraft, capacity, and booked revenue passenger miles. It connects Latin America with US destinations, accounting for more than 30% of US airline revenue.
5. Delta Air Lines, Inc. (NYSE:DAL)
Analysts’ Upside Potential as of November 20: 30.2%
Number of Hedge Fund Holders: 69
Delta Air Lines, Inc. (NYSE:DAL) is among the Best Airline Stocks.
On 17th November, MarketBeat reported that Sanders Capital LLC lowered its interest in Delta Air Lines, Inc. (NYSE:DAL) by 1.1% in the second quarter, as reported in the company’s most recent Form 13F filing with the Securities and Exchange Commission. The firm held 30,368,851 shares of the transportation company’s stock after selling 323,088 during the quarter. The stock is Sanders Capital LLC’s fifteenth-largest holding, accounting for 2.0% of the company’s investment portfolio. In its most recent filing with the Securities & Exchange Commission, Sanders Capital LLC held 4.65% of Delta Air Lines, Inc. (NYSE:DAL), valued at $1,493,540,000.
On November 13, Ed Bastian, CEO of Delta Air Lines, Inc. (NYSE:DAL), told Yahoo Finance that the U.S. government shutdown significantly disrupted the airline business due to abrupt flight reductions and staffing shortages in air traffic control. He highlighted that controllers and security workers had been working unpaid, pointing out delays and operational strain. According to Bastian, Delta Air Lines, Inc. (NYSE:DAL) anticipates resuming full operations in the coming days. He cited a $12 billion federal investment targeted at modernizing, while spotlighting outdated U.S. air traffic control technology. He also stated that system recovery will take time, as crews and timetables must be adjusted after an extended period of reduced flying.
Delta Air Lines, Inc. (NYSE:DAL)’s stock has fallen by 4.74% in the last five days, as of 17 November 2025.
Delta Air Lines, Inc. (NYSE:DAL) is a major airline in the United States, and it’s among the world’s largest by passengers and revenue.
4. Copa Holdings, S.A. (NYSE:CPA)
Analysts’ Upside Potential as of November 20: 32.6%
Number of Hedge Fund Holders: 17
Copa Holdings, S.A. (NYSE:CPA) is one of the Best Airline Stocks.
On November 20, TD Cowen analyst Thomas Fitzgerald reaffirmed his Buy rating and $141 price target on Copa Holdings, S.A. (NYSE:CPA) following the company’s Q3 2025 results. The analyst said the company’s performance in the quarter was robust, with its EPS of $4.20 exceeding the street and his own estimates. He argued that loyalty revenue was supported by the renewal of the ConnectMiles co-branded credit card agreement, which offset the softness in passenger revenue.
Along with its Q3 results on November 19, the company outlined its full-year 2025 outlook, continuing to project an operating margin of 22% to 23% and forecasting annual capacity growth of around 8%. For comparison, its 2024 ASM capacity growth was 8.6% YoY, and its operating margin was 21.9%.
Earlier, on November 4, 2025, Raymond James also increased its price objective for Copa Holdings, S.A. (NYSE:CPA) to $164 from $150 and maintained a Strong Buy rating for the shares, as reported by The Fly. The analyst informed investors in a research note that the price target increase is due to a revised fuel projection, an improved currency backdrop, and continued quarterly capacity growth. Copa Holdings, S.A. (NYSE:CPA) should benefit from improved MAX delivery patterns at Boeing, the firm stated.
Copa Holdings, S.A. (NYSE:CPA) released its preliminary traffic numbers for October 2025 on November 13, 2025, as per the Fly. System-wide passenger traffic (RPMs) climbed 9.3% to 2,443.6 million, while capacity (ASMs) increased 9.6% to 2,803.0 million.
October’s load factor was 87.2%, which is 0.2 percentage points less than October 2024. The load factor slightly decreased as a result of capacity growth exceeding traffic growth, according to the business.
Copa Holdings, S.A. (NYSE:CPA) and its subsidiaries operate aircraft passenger and cargo services.
3. United Airlines Holdings Inc. (NASDAQ:UAL)
Analysts’ Upside Potential as of November 20: 38.8%
Number of Hedge Fund Holders: 73
United Airlines Holdings Inc. (NASDAQ:UAL) is among the Best Airline stocks.
On November 20, 2025, David Vernon of Bernstein kept his Buy rating on United Airlines Holdings Inc. (NASDAQ:UAL) with a price target of $123. Earlier, on November 7, 2025, Vernon had reiterated his Buy rating on the company but raised the price objective from $121 to $123.
According to its most recent 13F filing with the SEC, Sanders Capital LLC reduced its holdings in United Airlines Holdings Inc. (NASDAQ:UAL) by 0.3% during the second quarter, as reported by Marketbeat on 17 November 2025. The institutional investor held 14,514,915 shares of the company’s stock after selling 39,060 during the quarter. Sanders Capital LLC’s 19th largest holding is United Airlines, which accounts for roughly 1.6% of the company’s total assets. At the end of the most recent quarter, Sanders Capital LLC had a $1,155,823,000 stake in United Airlines, or about 4.48%.
The company reported impressive third-quarter 2025 results in mid-October, driven by solid increases in premium and loyalty revenue, highlighting the carrier’s strength in high-margin areas. Total operating revenue jumped 2.6% year over year, caused by a 6% surge in premium cabin revenue and a 9% increase in loyalty revenue. Adjusted earnings reached $2.78 per share, outperforming Wall Street and internal guidance estimates by $0.10 per share due to capacity expansion and cost reductions. The company also anticipated Q4 EPS of $3.00-$3.50, above the consensus of $2.87. It also forecasts the highest total operating revenue in the business’s history.
United Airlines Holdings Inc. (NASDAQ:UAL) is a key US network airline with hubs in San Francisco, Chicago, Houston, Denver, Los Angeles, Newark, and Washington.
2. SkyWest, Inc. (NASDAQ:SKYW)
Analysts’ Upside Potential as of November 20: 40.5%
Number of Hedge Fund Holders: 34
SkyWest, Inc. (NASDAQ:SKYW) is among the Best Airline stocks. It provides airline services in the United States, Canada, Mexico, and the Caribbean. Furthermore, it leases airplanes to competent users to generate revenue.
As of November 20, SkyWest, Inc. (NASDAQ:SKYW) is a consensus Buy with all the analysts covering it having a Buy or equivalent rating. With a consensus 1-year median price target of $130, the stock has a 41% upside potential.
On analyst activity, Thomas Fitzgerald CFA, a TD Cowen analyst, raised his price target to $132.00 from $124 on October 31, 2025. He maintained a buy rating on SkyWest, Inc. (NASDAQ:SKYW).
SkyWest, Inc. (NASDAQ:SKYW) announced Q3 sales of $1.05 billion on October 31, surpassing the consensus projection of $1.03 billion, and EPS of $2.81, beating estimates of $2.56, according to TheFly. As per CEO Chip Childs, the business is still implementing a balanced capital deployment strategy while generating revenue through the flexibility of its CRJ fleet, which is anticipated to generate long-term value for customers, workers, and investors. Furthermore, he noted a growing need for travel and the operational resilience of the summer months.
During the earnings call, management explained that the revenue and profitability gains were fueled by strong demand for regional flying, improved operational efficiency, and increased prorate and charter revenues. So far this year, SkyWest, Inc. (NASDAQ:SKYW) has completed more than 185 days with 100% controlled completion, demonstrating excellent performance. CFO Robert Simmons reported pretax income of $157 million, which was supported by $27 million in share repurchases, strong cash flow generation, and effective cost management.
Looking ahead, SkyWest, Inc. (NASDAQ:SKYW) projected mid-$10 per share EPS in 2025 and mid-to-high single-digit EPS growth in 2026, primarily due to continued fleet flexibility, new E175 deliveries, and consistent block hour expansion.
1. Alaska Air Group Inc. (NYSE:ALK)
Analysts’ Upside Potential as of November 20: 71.9%
Number of Hedge Fund Holders: 41
Alaska Air Group Inc. (NYSE:ALK) is the Best Airline Stock. The company and its subsidiaries operate airlines in three segments: Alaska Airlines, Hawaiian Airlines, and Regional. The company operates scheduled passenger and cargo air transportation services throughout the United States, Belize, Canada, Mexico, Costa Rica, Guatemala, and the Bahamas, as well as shorter-distance flights within North America.
On November 3, 2025, TD Cowen kept its Buy rating on Alaska Air Group Inc. (NYSE:ALK) shares and raised its price objective to $65 from $61, as reported by The Fly. The firm showed confidence in the airline’s earnings growth potential by updating its estimates to reflect the company’s third-quarter 2025 results and fourth-quarter guidance regarding RASM (revenue per available seat mile) and CASMex (cost per available seat mile excluding fuel).
In separate news, The Fly reported on November 1, 2025, that Alaska Air Group Inc. (NYSE:ALK) stated in a regulatory filing that it will release revised fourth-quarter guidance in early December. The business stated that this information will not be released until the complete financial impact of recent IT outages has been assessed.
Alaska Air Group Inc. (NYSE:ALK) reported $3.8 billion in revenue, resulting in a 1.4% RASM YoY growth and $229 million in operating cash flow in the last quarter. Cargo jumped by 27%, corporate travel surged by 8% YoY, premium revenue increased by 5%, and loyalty compensation shot up by 8%. The airline announced new routes from Seattle to London/Reykjavik beginning in 2026, as well as the debut of Atmos Rewards and the expansion of fleetwide Starlink Wi-Fi.
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