Best airline stocks to watch
Airline stocks are popular for their strong cash flows and exposure to global growth. Consider the largest airline stocks to invest in with us.
Airline stocks in brief
Airline stocks are shares in companies that operate commercial airplanes for both passenger and cargo transportation. They range from global giants like Delta Air Lines to regional, budget carriers like Ryanair. When you buy shares in airline stocks, you own a small stake in the company — giving you exposure to capital gains and potential dividend income.
As with all market segments, there are advantages and drawbacks to investing in airline stocks. On the plus side, you can benefit from the massive travel demand that has been rising since pandemic lockdowns ended — and in some ways, the pandemic has actually strengthened many airline stocks’ businesses — with improved financial discipline, optimised roues and leaner operations.
Beyond this, there has been significant industry consolidation for the same pandemic reasons: this has had the longer-term effect of increasing pricing power and efficiency. But perhaps most importantly, airline stocks offer exposure to global GDP growth, as travel spending tends to increase as the economy grows. Airlines also tend to benefit sharply when oil prices fall, though this can be a double-edged sword if it heralds recession.
On the other hand, airlines face volatile jet fuel and labour expenses, with fixed costs tending to remain elevated regardless of travel demand. And just as the airline industry benefits hugely from growth, it’s also among the first to suffer during a downturn. Perhaps more importantly, almost all airlines operate on thin profit margins as the industry is highly competitive — which means that anything from a major weather disruption to one bad quarterly report can hit harder than in other sectors.
More widely, airlines are subject to several geopolitical and regulatory risks which are external and therefore cannot be controlled, including wars, pandemics, travel bans or carbon taxes. Rising oil prices can also decimate profit margins, while labour disputes are becoming increasingly common — arguably because profit margins are low and competition high. Many airlines are still struggling with debt taken on during the pandemic, and pressure to decarbonise is also adding to costs.
Overall though, many investors enjoy long-term returns from major airline stocks, within a diversified portfolio of managed risk.
How to invest in airline stocks with us
- Learn more about airline stocks
- Download the IG Invest app or open a share dealing account online
- Search for your desired stock on our app or web platform
- Choose how many shares you’d like to buy
- Place your deal and monitor your investment
Investors look to grow their capital through share price returns and dividends - if paid.
But the value of investments can fall as well as rise, past performance is no indicator of future returns, and you could get back less than your original investment.
For investors seeking exposure to diversified airline stocks, we offer the US Global Jets UCITS ETF (JETS), which provides investors access to the global airline industry, including airline operators and manufacturers from all over the world. It sports an expense ratio of 0.6%, with top holdings including United Airlines and Delta Air Lines.
Best airline stocks to watch
These are the largest airline stocks in the world by market capitalisation as of April 2025.
Delta Air Lines (NYSE: DAL)
Delta Air Lines is one of the largest carriers in the United States, operating over 5,000 flights daily across both domestic routes and to over 50 countries. It is a founding member of the SkyTeam alliance and has hubs in Atlanta, Detroit, and New York.
The airline is one of the most reliable in the world, and offers premium experiences — such as the Delta One program and frequent flyer SkyMiles — which have helped generate strong brand loyalty and higher-than-average pricing in a notoriously competitive industry. However, like all airlines, Delta is highly sensitive to oil price fluctuations and rising employment costs, especially during downturns.
Ryanair (NASDAQ: RYAAY)
Ryanair is by some distance Europe’s largest low-cost carrier by passenger numbers. It primarily serves short-haul routes across the European Union and North Africa, using a point-to-point model and secondary airports some distance from major cities, to keep customer costs low.
This ultra-low cost base gives Ryanair a significant pricing advantage, allowing it to remain profitable even during demand shocks. However, this model also tends to mean more frequent worker disputes, alongside customer complaints due to its no-frills approach and strict policies.
InterGlobe Aviation (NSE: INDIGO.NS)
InterGlobe operates IndiGo, India’s largest airline by market share. It runs a fleet comprised largely of Airbus A320 family aircraft, and focuses on high-frequency, low-cost domestic operations — but with growing international routes to Southeast Asia and the Middle East.
IndiGo's newer fleet, cost discipline and market dominance mean it could grow fast given India is now one of the world’s fastest-growing aviation markets. On the other hand, the stock remains vulnerable to macro factors like Rupee depreciation and volatile fuel prices, which can affect profitability even more than in western markets, due to India’s lower average disposable income.
United Airlines (NASDAQ: UAL)
United Airlines is a major American airline sporting global operations, which is especially strong in trans-Pacific and Latin American routes. Its main hubs include Chicago, Houston, and Newark.
United has one of the most comprehensive global route networks, especially after recent expansions in Asia and recently announced partnerships with international carriers. Conversely, it has historically suffered from weaker customer satisfaction ratings and operational issues which perhaps put it at a disadvantage compared to market peers like Delta or American.
IAG (LON: IAG)
IAG (International Consolidated Airlines) is a multinational holding group based in the UK and Spain. It owns British Airways, Iberia, Aer Lingus, alongside low-cost carriers including LEVEL and Vueling.
This diversified portfolio lets IAG serve both premium long-haul and low-cost short-haul markets, balancing revenue streams across segments — because usually when one segment is struggling the other is performing well. However, European regulatory pressure could make cost management and strategic expansion more complex than operators in other regions.
Air China (SSE: 601111.SS)
Air China is the flag carrier of China and offers both extensive domestic coverage and growing long-haul services to North America and Europe. It has strategic partnerships with Star Alliance members and is partly government-owned.
It enjoys a very strong position in Beijing, one of the world’s largest aviation markets, and access to government support gives the company clear advantages in infrastructure and policy influence. However, Air China potentially sports lower responsiveness to market competition and quality-of-service concerns compared to other carriers.
Singapore Airlines (SGX: C6L.SI)
Singapore Airlines is the byword for airline quality, and offers long-haul, premium-focused international flights, alongside Scoot, its low-cost subsidiary. Its Changi hub is also a key international gateway in Asia.
Singapore’s global brand prestige and service innovation (for example, its premium economy and top-rated business class) support high margins and a loyal customer base. Nevertheless, it’s heavily dependent on international travel and premium passengers, making it more vulnerable to global travel restrictions or business travel slowdowns.
Southwest Airlines (NYSE: LUV)
Southwest Airlines is a low-cost, no-frills airline based in the US, famous for its single aircraft type — the Boeing 737 — and free checked bag policy. It operates point-to-point routes rather than the hub-and-spoke model, which is both operationally efficient and consistently profitable even when other carriers have struggled.
The company is also well-known for its employee-centric culture, which again has helped retain a strong domestic position. However, this reliance on the US market does mean it lacks diversification during domestic downturns.
China Southern Airlines (SSE: 600029.SS)
China Southern Airlines is the largest airline in China by fleet size, with a major hub in Guangzhou. It serves Asia-Pacific, North America, Europe and Oceania, and recently left the SkyTeam alliance to pursue independent expansion.
On the plus side, it enjoys a strong domestic and regional footprint with growing international ambitions, backed by government infrastructure investment. However, intense domestic competition and limited alliance affiliations could well hamper its growth in the medium term.
Turkish Airlines (BIST: THYAO.IS)
Based in Istanbul, Turkish Airlines flies to more countries than any other airline, mostly because of Turkey’s location in the middle of Europe, Asia, and the Middle East. It offers both long-haul and regional services.
Its strategic geography is a core strength as it can capture transfer traffic across continents efficiently — including for underserved markets — but at the same time, the stock is subject to regional political instability, security concerns, and currency risk due to exposure to the volatile Turkish lira.
Airline stocks summed up
- Airline stocks offer exposure to global travel demand and economic growth, with pandemic-era restructuring improving operational efficiency and profitability for many companies
- The industry can struggle with thin margins, high fixed costs and vulnerabilities to oil prices, employment disputes, geopolitical events and economic downturns
- While there is a strong upside to many airline stocks, several are still struggling with debt taken on during the pandemic
- Investors can buy individual stocks like Delta, Ryanair, or IndiGo, or diversify via ETFs like the US Global Jets ETF