Is Delta Air Lines stock a good buy?

Delta emerged from a period of consolidation last decade as one of the industry leaders, and Delta's work on pricing has helped make large airlines more competitive against discounters. The stock is a top choice for investors who want an industry-leading company.

What factors influence airline stock prices?

Factors, including the state of the economy and oil prices, influence stock prices. Demand for tickets tends to be stronger when the economy is booming, since vacations and business travel are discretionary. Fuel and labor are the two largest expenses for airlines, so higher oil prices can weigh on margins and bring down stocks.

How do airline stocks perform during economic downturns?

Airline stocks tend to underperform during economic downturns because businesses and consumers prioritize spending on areas other than travel. Historically, downturns have caused airline bankruptcies and failures. Waves of consolidation have made the large airlines more stable, but bankruptcy remains a potential concern during a recession.

Do airline stocks pay dividends?

Some airlines pay dividends. Right now, both Delta and Southwest are dividend payers.

What is the market capitalization of the airline industry?

The total market capitalization of publicly traded airlines worldwide is about $400 billion, with about $125 billion from U.S. airlines.

What are the current trends in airline stocks?

Airlines are increasingly generating a significant portion of their revenue from upgrades, including seats with more legroom or in-flight food service. These add-ons allow airlines to compete on the base fare, then upcharge customers for the services they want.

Best Airline Stocks to Buy in 2026 and How to Invest

By Lou Whiteman – Updated Apr 17, 2026 at 4:04 AM EST | Fact-checked by Frank Bass

Key Points

Consolidation in the airline industry has improved pricing power and financial stability.
Rising fuel costs and labor shortages pose risks, but some airlines manage better.
Investing in airlines can be rewarding if you can tolerate cyclical volatility.

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.

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Ticker Information Table
Name and ticker	Market cap	Dividend yield	Industry
Delta Air Lines (NYSE:DAL)	$47.0 billion	1.05%	Airlines
United Airlines (NASDAQ:UAL)	$31.2 billion	0.00%	Airlines
Southwest Airlines (NYSE:LUV)	$19.2 billion	1.83%	Airlines
Alaska Air Group (NYSE:ALK)	$4.3 billion	0.00%	Airlines
Frontier Group (NASDAQ:ULCC)	$1.1 billion	0.00%	Airlines

Data as of May 15, 2026. Showing 5 of 5 tickers.

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5 top airline stocks for 2026

Delta Air Lines

NYSE: DAL

Delta Air Lines

Today's Change

(-1.76%) $-1.26

Current Price

$70.29

Key Data Points

Market Cap

$47B

Day's Range

$69.57 - $70.98

52wk Range

$45.28 - $76.39

Volume

382K

Avg Vol

11M

Gross Margin

16.93%

Dividend Yield

1.05%

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This airline is the driving force behind much of the recent innovation in the industry. Atlanta-based Delta Air Lines (DAL -1.85%) kicked off a round of consolidations that helped stabilize the business when it acquired Northwest Airlines in 2008, and it has revamped pricing to better compete with discounters. Delta even bought an oil refinery to ensure its access to jet fuel.

More recently, Delta was out in front of the pack when it came to forging a new labor deal with its all-important pilots group. Where Delta goes, its rivals follow.

Post-pandemic Delta has a stable balance sheet and relatively strong labor relations, making it a good choice to be among the first international carriers to fully recover.

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United Airlines Holdings

NASDAQ: UAL

United Airlines

Today's Change

(-3.30%) $-3.17

Current Price

$92.85

Key Data Points

Market Cap

$31B

Day's Range

$92.76 - $94.66

52wk Range

$71.55 - $119.21

Volume

5.1M

Avg Vol

7.8M

Gross Margin

28.69%

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United Airlines (UAL -3.30%) has extensive operations serving Silicon Valley and the U.S. energy sector, as well as a massive network throughout Asia. The highly cyclical nature of those markets means United's results can ebb and flow with tech or energy markets.

Chicago-based United was historically the envy of the industry for its large presence in key business markets and its unrivaled connections to corporate travelers. Its advantage waned during the pandemic, but its network remains a key strength for United.

Importantly for investors, this long-time underperformer now has a stable, progressive management team that has done a good job of modernizing its long-sleepy operation.

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Southwest Airlines

NYSE: LUV

Southwest Airlines

Today's Change

(-2.11%) $-0.83

Current Price

$38.50

Key Data Points

Market Cap

$19B

Day's Range

$38.17 - $38.98

52wk Range

$28.98 - $55.11

Volume

6.4M

Avg Vol

8.6M

Gross Margin

19.62%

Dividend Yield

1.83%

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Southwest Airlines (LUV -2.11%) was the original discounter, but it is now one of the industry titans and no longer a maverick start-up. The Dallas-based airline remains the only major carrier never to land in bankruptcy court, and its streamlined operations have a track record of profitability even when rivals struggle.

Southwest's pristine reputation has taken a few hits in recent years. The airline had a high-profile schedule meltdown during the 2022 holiday season, and issues with its aging IT infrastructure led to another systemwide grounding of planes in 2023. The company was the target of activist pressure in 2024, which led Southwest to modernize its systems, begin assigning seats, and add fees for checked bags.

But even if this is not the Southwest of old, the airline is, by and large, a reliable operator that remains a cost leader. It also has the industry's best balance sheet, making it an investor favorite for its resilience.

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Alaska Air Group

NYSE: ALK

Alaska Air Group

Today's Change

(-3.20%) $-1.22

Current Price

$36.94

Key Data Points

Market Cap

$4.3B

Day's Range

$36.90 - $37.98

52wk Range

$33.03 - $65.88

Volume

2.8M

Avg Vol

4.4M

Gross Margin

13.76%

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Alaska Air Group (ALK -3.20%), as its name suggests, has largely been focused on the U.S. Pacific Northwest for much of its history. But thanks to its 2016 purchase of Virgin America and 2023 acquisition of Hawaiian Airlines, the company is now a major player down the West Coast into southern California and has a transcontinental business, as well.

Alaska has historically partnered with its bigger rivals, giving its customers access to the entire globe and its partners more service to small Pacific Northwest markets. These days, Alaska is tied most closely to American Airlines Group (AAL -3.07%).

Through the years, Alaska has developed a reputation as a solid operator that has outperformed its larger rivals. The airline experienced some hiccups during the integration of Virgin America, but has regained altitude and once again ranks as one of the most intriguing investments in the sector.

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Frontier Group Holdings

NASDAQ: ULCC

Frontier Group

Today's Change

(-2.06%) $-0.10

Current Price

$4.75

Key Data Points

Market Cap

$1.1B

Day's Range

$4.66 - $4.78

52wk Range

$3.02 - $6.66

Volume

3.6M

Avg Vol

5.6M

Gross Margin

-544.16%

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Frontier Group Holdings (ULCC -2.06%) is a new breed of discount carrier that offers very little beyond a seat for the price of a ticket, charging for small frills like beverages and carry-on bags that other airlines provide for free.

The business model is the subject of many complaints and jokes, but price-sensitive consumers pack the planes. And thanks to its low-cost structure, Frontier can win a price war against almost any other carrier in its market.

Frontier is unlikely to ever join the ranks of global airlines like Delta or United, and might never enjoy the scale of Southwest. However, it offers a niche product that has made it the fastest-growing airline in the U.S. and has a large book of jets on order for future expansion.

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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.

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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.

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FAQ

Investing in airline stocks: FAQ

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About the Author

Lou Whiteman is a contributing Motley Fool stock analyst covering aerospace, defense, transport, manufacturing, specialty finance, and bank stocks. Previously, Lou was a financial analyst and senior writer for TheStreet, a venture capital specialist for The Deal LLC, and a high school personal finance teacher. He holds a bachelor’s degree in communications from Loyola University Maryland and completed a fellowship at the ABA Stonier Graduate School of Banking.

TMFLouWhiteman

@louwhiteman

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.

Best Airline Stocks to Buy in 2026 and How to Invest

Key Points

5 top airline stocks for 2026

Delta Air Lines

Key Data Points

United Airlines Holdings

Key Data Points

Southwest Airlines

Key Data Points

Alaska Air Group

Key Data Points

Frontier Group Holdings

Key Data Points

How to invest in airline stocks

Benefits and risks of investing in airline stocks

Should you invest in airline stocks?

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FAQ

Investing in airline stocks: FAQ

Is Delta Air Lines stock a good buy?

Is Delta Air Lines stock a good buy?

What factors influence airline stock prices?

What factors influence airline stock prices?

How do airline stocks perform during economic downturns?

How do airline stocks perform during economic downturns?

Do airline stocks pay dividends?

Do airline stocks pay dividends?

What is the market capitalization of the airline industry?

What is the market capitalization of the airline industry?

What are the current trends in airline stocks?

What are the current trends in airline stocks?

About the Author

Read Next

Stocks Mentioned

Premium Investing Services

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

How to invest in airline stocks

Benefits and risks of investing in airline stocks

Should you invest in airline stocks?

Best Transportation Stocks for 2026 and How to Invest

Best Travel and Tourism Stocks for 2026 and How to Invest

Best Defense Stocks to Buy in 2026 and How to Invest in Them

Best Industrial Stocks to Buy in 2026 and How to Invest in Them

Investing in airline stocks: FAQ

Is Delta Air Lines stock a good buy?

Is Delta Air Lines stock a good buy?

What factors influence airline stock prices?

What factors influence airline stock prices?

How do airline stocks perform during economic downturns?

How do airline stocks perform during economic downturns?

Do airline stocks pay dividends?

Do airline stocks pay dividends?

What is the market capitalization of the airline industry?

What is the market capitalization of the airline industry?

What are the current trends in airline stocks?

What are the current trends in airline stocks?