Airline stocks have a long history of boom-and-bust cycles, but today’s industry looks very different from a decade ago. Consolidation has left a small group of dominant carriers with better pricing power, stronger balance sheets, and more disciplined capacity management.
Travel demand has rebounded sharply since the pandemic, helping the strongest airlines return to profitability. While rising fuel costs and labor shortages remain real risks, some carriers are far better positioned than others.
For investors who understand the volatility, here are the best airline stocks to consider and how to invest in the sector.
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Delta Air Lines (NYSE:DAL) | $47.1 billion | 0.99% | Airlines |
| United Airlines (NASDAQ:UAL) | $33.0 billion | 0.00% | Airlines |
| Southwest Airlines (NYSE:LUV) | $21.0 billion | 1.69% | Airlines |
| Alaska Air Group (NYSE:ALK) | $5.1 billion | 0.00% | Airlines |
| Frontier Group (NASDAQ:ULCC) | $1.0 billion | 0.00% | Airlines |
5 top airline stocks for 2026
Delta Air Lines
NYSE: DAL
Key Data Points
United Airlines Holdings
NASDAQ: UAL
Key Data Points
Southwest Airlines
NYSE: LUV
Key Data Points
Alaska Air Group
NYSE: ALK
Key Data Points
Frontier Group Holdings
NASDAQ: ULCC
Key Data Points
How to invest in airline stocks
- Open your brokerage app: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Benefits and risks of investing in airline stocks
Benefits:
- Strong post-pandemic demand has held up. The rise of the global middle class and a focus on experiences over goods play into long-term demand for travel.
- The airlines have discovered how to price for profits, creating a period of record net income performance across the industry.
- New, technology-enabled pricing methods are allowing airlines to build multiple revenue streams.
Risks:
- Jet fuel is often an airline's largest variable expense, and the industry tends to suffer when oil and fuel prices are high.
- Airlines have mostly unionized workforces and a huge demand for skilled labor. Pilot shortages and work stoppages can impact costs, schedules, and reliability.
- Global demand for aircraft has left airlines with little pricing power to negotiate new jet purchases and has created some vulnerabilities in the spare parts supply chain.
Should you invest in airline stocks?
Airline stocks can be rewarding, but remember that the sector is cyclical, and profits can swing quickly with fuel prices, labor costs, and the broader economy.
If you can tolerate volatility and believe travel demand will grow over time, a well-run airline can offer leveraged exposure to economic expansion. If you prefer steadier returns, consider limiting airlines to a small portion of your portfolio or using an airline ETF for diversified exposure.
Related investing topics
FAQ
Investing in airline stocks: FAQ
About the Author
Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool recommends Alaska Air Group, Delta Air Lines, and Southwest Airlines. The Motley Fool has a disclosure policy.
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