Is Delta Air Lines stock a good buy?

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

What factors influence airline stock prices?

Factors such as 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 can be 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, including Delta and Southwest.

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 base fares and then upcharge customers for services.

Best Airline Stocks to Buy in 2026 and How to Invest

By Lou Whiteman – Updated Jul 14, 2026 at 5:55 PM EST | Fact-checked by Frank Bass

Key Points

Consolidation has increased the pricing power and financial stability of top airlines.
Travel demand rebound post-pandemic boosts profitability for major carriers.
Rising fuel costs and labor shortages pose financial risks to airline stocks.

Loading paragraph...

Ticker Information Table
Name and ticker	Current price	Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.	Dividend yield
Delta Air Lines (NYSE:DAL)	$84.17	$55.4 billion	1.15%
United Airlines (NASDAQ:UAL)	$115.41	$37.5 billion	0.00%
Southwest Airlines (NYSE:LUV)	$48.08	$23.5 billion	1.50%
Alaska Air Group (NYSE:ALK)	$45.51	$5.1 billion	0.00%
Frontier Group (NASDAQ:ULCC)	$6.23	$1.4 billion	0.00%

Data as of Jul 19, 2026. Showing 5 of 5 total entries.

Loading ticker_table...

Delta Air Lines

Loading paragraph...

NYSE: DAL

Delta Air Lines

Today's Change

(-2.92%) $-2.53

Current Price

$84.17

Key Data Points

Market Cap

$55B

Day's Range

$83.56 - $86.02

52wk Range

$50.45 - $95.68

Volume

6.5M

Avg Vol

7.8M

Gross Margin

15.96%

Dividend Yield

1.15%

Loading company_card...

This airline is the driving force behind much of the recent innovation in the industry. Atlanta-based Delta Air Lines 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 among the first international carriers to fully recover.

Loading paragraph...

United Airlines Holdings

Loading paragraph...

NASDAQ: UAL

United Airlines

Today's Change

(-2.86%) $-3.40

Current Price

$115.41

Key Data Points

Market Cap

$37B

Day's Range

$114.04 - $118.59

52wk Range

$82.42 - $138.77

Volume

Avg Vol

5.9M

Gross Margin

26.87%

Loading company_card...

United Airlines 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 longtime underperformer now has a stable, progressive management team that has done a good job of modernizing its sleepy operation.

Loading paragraph...

Southwest Airlines

Loading paragraph...

NYSE: LUV

Southwest Airlines

Today's Change

(-2.73%) $-1.35

Current Price

$48.08

Key Data Points

Market Cap

$24B

Day's Range

$47.56 - $48.95

52wk Range

$28.98 - $55.11

Volume

3.9M

Avg Vol

6.6M

Gross Margin

19.62%

Dividend Yield

1.50%

Loading company_card...

Southwest Airlines 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 have filed for bankruptcy, and its streamlined operations have a track record of profitability even as 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.

Loading paragraph...

Alaska Air Group

Loading paragraph...

NYSE: ALK

Alaska Air Group

Today's Change

(-4.43%) $-2.11

Current Price

$45.51

Key Data Points

Market Cap

$5.1B

Day's Range

$45.14 - $46.60

52wk Range

$33.03 - $65.88

Volume

3.5M

Avg Vol

3.5M

Gross Margin

13.76%

Loading company_card...

Alaska Air Group, 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 -3.94%).

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.

Loading paragraph...

Frontier Group Holdings

Loading paragraph...

NASDAQ: ULCC

Frontier Group

Today's Change

(-4.59%) $-0.30

Current Price

$6.23

Key Data Points

Market Cap

$1.4B

Day's Range

$6.17 - $6.46

52wk Range

$3.02 - $8.40

Volume

4.4M

Avg Vol

5.2M

Gross Margin

-544.16%

Loading company_card...

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

Loading paragraph...

How to buy 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.

Loading paragraph...

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, resulting in a period of record net income 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 when negotiating new jet purchases and has created vulnerabilities in the spare parts supply chain.

Methodology: How these stocks were chosen

Airlines are all in the same basic business -- moving people from point A to point B -- but the ways they schedule and price their services vary. For this list, we tried to provide a sampler of the best full-service airlines, discounters, and those in between.

These airlines are the best of the best in terms of financial performance, but they are unlikely to all trade together. Delta and United will benefit if corporate travel is strong, while Southwest tends to cater to vacationers. All airlines tend to be cyclical, doing better when the economy is strong and both people and businesses can afford to travel.

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 buying into a transportation-focused exchange-traded fund (ETF) for diversified exposure.

Loading paragraph...

FAQ

Loading paragraph...

Investing in airline stocks: FAQ

Loading faq...

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