2025 Aviation Stock Investment Guide: In-Depth Comparison of Leading US and Taiwan Stocks

Why Are Airline Stocks Worth Watching? Investment Opportunities in 2025

Airline stocks are a clearly cyclical sector. After experiencing a three-year downturn due to the pandemic, they are now entering a recovery phase. According to estimates from the International Air Transport Association (IATA), global passenger numbers will officially surpass pre-pandemic levels by 2025. By 2040, travel demand is expected to double to 8 billion passenger trips, with an average annual growth rate of 3.4%. This indicates that the airline industry will have sustained growth fundamentals over the next 15 years.

Even value investing masters like Warren Buffett have changed their views on airline stocks, beginning to build positions among the three major US carriers. Wall Street analysts are also raising their ratings, all pointing to the same trend—the recovery of airline stocks may just be beginning.

US Airline Stocks: In-Depth Analysis of the Three Major Picks

( Delta Air Lines )DAL###: Favorite of Business Travelers

Delta Air Lines is a global airline giant headquartered in Atlanta, with a history dating back to 1924. Its network covers over 1,000 destinations across six continents. Its core advantages include:

Solid Financial Performance: Since 2025, the stock price has surged over 69%. Although it has pulled back slightly in the past month (-3.86%), as of November 13, the stock price remains at $60.48, with a total market cap of $39.49 billion. Its P/E ratio is only 8.52, indicating an undervaluation within the airline sector.

Strong Cost Control: Delta has clear advantages in fuel hedging, fleet maintenance, and proprietary fuel management, which are especially valuable amid volatile oil prices. Additionally, it has a higher proportion of business travelers and international routes, with ticket prices and profit margins outperforming economy class passengers.

Target Audience: Suitable for conservative investors who can tolerate short-term fluctuations and are optimistic about the US economic recovery.

( Copa Airlines )CPA(: Latin America’s Growth Pole

As the largest airline operator in Latin America, Copa Airlines operates under the Copa Airlines and AeroRepública brands, establishing a network covering North, Central, and South America, as well as the Caribbean. Rising disposable income and urbanization in Latin America provide strong growth momentum for airline demand.

Impressive Performance: In Q2 2025, net profit was $149 million, with earnings per share of $3.61, up 25% year-over-year. At the end of the period, cash and investments totaled $1.4 billion, accounting for 39% of revenue over the past 12 months, demonstrating strong financial resilience.

Operational Efficiency: On-time rate reaches 91.5%, flight completion rate 99.8%, maintaining high reliability even during regional seasonal adverse weather. Unit operating costs decreased by 4.6% to 8.5 cents per seat mile, and it has been rated as the best airline in Central America and the Caribbean by Skytrax for ten consecutive years.

Stock Price Trend: The stock has risen 74.28% in the past month, with a market cap of $5.23 billion and a P/E ratio of 8.27. The recent surge reflects market optimism, but investors should be cautious of potential pullbacks.

) Ryanair ###RYAAY(: Europe’s Low-Cost Leader

Ryanair Holdings is a globally renowned low-cost airline headquartered in Ireland, known for ultra-low fares and high operational efficiency. Its fleet exceeds 640 aircraft, serving 36 countries and 224 airports, with about 3,600 flights daily and an annual passenger volume of 207 million.

Expansion Ambitions: It has ordered 300 new Boeing 737 aircraft and plans to increase annual passenger numbers to 300 million by 2034. In winter 2025, it added three aircraft based in Milan, investing $3.1 billion, opening five new routes, and increasing frequency on 40 popular routes.

Financial Metrics: As of November 13, the stock closed at $64.61, with a market cap of $34.317 billion and a P/E ratio of 12.72. The stock has surged 43.91% in the past month, reaching high levels, with short-term profit-taking risks.

Stock Selection Advice: Ryanair is suitable for investors optimistic about Europe’s travel recovery and confident in low-cost airline demand, but current prices already reflect many positive expectations.

Taiwan Stock Airline Stocks: Analysis of the Three Major Leaders

) Evergreen Marine ###2618(: The Epitome of Five-Star Service

EVA Air is Taiwan’s leading airline, established in 1989, and has received Skytrax five-star certification. Its fleet includes modern aircraft such as Boeing 787 Dreamliners and A350s, with a route network covering Asia, Europe, North America, and Oceania, with over 60 destinations.

Strong Operational Data: In Q3 2025, passenger load factor reached 92.5%, with domestic routes at 93.5%. International capacity (ASK) increased by 28% year-over-year. Long-haul routes to Europe and North America, as well as popular Southeast Asian routes, continue to see rising bookings.

Fleet Planning: It is advancing a project to convert three Boeing 777-300ERs into freighters, further strengthening capacity. The newly introduced 787 fleet has been deployed on routes such as Brisbane and will extend to Vancouver.

Stock Performance: As of November 13, the stock closed at NT$37.2, with a market cap of about NT$186 billion, and a P/E ratio of 6.56. It has declined 2.2% in the past month. Institutional investors expect the full-year stock price to reach NT$37.84, indicating limited growth potential but stable fundamentals.

) China Airlines ###2610(: Rich Heritage and Expansion

Founded in 1959, China Airlines is Taiwan’s oldest airline, part of the SkyTeam alliance. Its subsidiaries include Mandarin Airlines and Tigerair Taiwan, forming a comprehensive full-service and low-cost market layout. The fleet comprises 83 aircraft, including 65 passenger planes and 18 cargo planes.

Performance: In Q3 2025, passenger load factor was 86.9%, up 4.4 percentage points from 2019. International capacity increased by 13% year-over-year, with high booking volumes on Northeast Asia and North America routes.

Stock Trend: As of November 13, the stock closed at NT$28.6, with a market cap of about NT$162 billion, and a P/E ratio of 7.63. It has fallen 0.6% in the past month. Analysts are optimistic about its long-haul route expansion and valuation recovery potential.

) Starlux Airlines (2646): Emerging Growth Stock with Potential

Starlux Airlines is a new full-service airline in Taiwan, launched in 2020, adopting a differentiated route strategy distinct from traditional regional airlines. Using Taoyuan as a hub, it rapidly expands routes to Asia and North America.

Key Growth Indicators: In Q3 2025, passenger load factor reached 85.9%, with domestic routes at 86.3%. International capacity increased by 10% year-over-year. The new Taipei-California Ontario route in June already has 80% bookings, indicating high market recognition.

Strategic Upgrades: At the Paris Air Show, it ordered 10 Airbus A350-1000 flagship aircraft, planned for routes including Phoenix. In April, it added a Taichung-Kobe route, further improving its Northeast Asia network.

Stock Performance: As of November 13, the stock closed at NT$42.8, with a market cap exceeding NT$95 billion, up about 18% since the start of the year, making it the most outstanding growth stock in the airline sector. Its market cap is $7.071 billion, with a P/E ratio of 48.53. Despite high valuation, growth prospects are clear.

Core Strategies for Investing in Airline Stocks

Seize the Economic Cycle Windows

Airline stocks follow obvious boom-bust cycles. The best entry point is near the end of a cycle when market sentiment is still pessimistic. When international tourism recovers and business travel picks up, airline profits tend to improve rapidly. This is precisely the investment window in 2025.

( Diversify Regional Risks

Diversifying airline investments across different regions can reduce single-market risks. US stocks include Delta and Ryanair; Taiwan stocks include Evergreen and China Airlines; if optimistic about Latin American growth, consider Copa Airlines. This approach allows participation in the global recovery while avoiding regional risks.

) Prioritize Companies with Strong Cash Flows

The airline industry is capital-intensive, requiring large cash investments. Prioritize companies that:

• Have manageable debt levels
• Possess sufficient cash reserves to weather downturns
• Have clear expansion plans and investment capacity

Examples include Evergreen, China Airlines, and Delta.

The Double-Edged Nature of Airline Stocks: Returns and Risks

( Why Are Airline Stocks Worth Investing In?

1. High Elasticity Growth Opportunities: When travel demand surges, airline stocks often rise quickly. From 2022 to 2024, many airlines experienced rapid profit rebounds, benefiting from the economic recovery.

2. Oligopoly Advantages: Despite fierce competition, routes, traffic rights, and fleet sizes are difficult to rapidly increase. Major airlines often hold dominant positions in their home markets, such as the four largest US carriers monopolizing domestic long-haul and international hubs.

3. Diversified Revenue Streams: Modern airlines earn not only from tickets but also from baggage fees, seat upgrades, mileage programs, cargo, and co-branded credit cards, making profits more stable.

4. Attractive Dividends: Well-funded airlines often pay dividends during stable periods, appealing to investors who prefer steady cash flow.

) Risks to Watch Out For

1. Fragile Cost Structure: Fuel, labor, and maintenance costs are the three main expenses. Rising oil prices or labor shortages can directly squeeze profits, which explains why airline stocks tend to be more volatile than the broader market.

2. High Debt Burden: Fleet, terminal, and equipment costs are very high, and airlines generally carry significant debt. When the economy turns or interest rates rise, financial pressure intensifies. During the pandemic, many US airlines issued large amounts of capital to cope.

3. Black Swan Events: External shocks such as pandemics, geopolitical conflicts, soaring oil prices, and weather events often hit the airline industry hardest and are difficult to predict.

4. Increasing Competition Concerns: The expansion of low-cost carriers like Ryanair can suppress industry-wide ticket prices and profit margins, threatening the profitability of full-service airlines.

Investment Conclusions for Airline Stocks in 2025

Based on the fundamentals of global travel recovery, strong regional airline performances, and macro policy support (interest rates possibly peaking), airline stocks still present good investment opportunities in 2025 and beyond.

Optimal Choices:

• Conservative Investors: Choose Evergreen or Delta, with stable fundamentals and reasonable valuations
• Growth Investors: Allocate to Starlux or Ryanair to enjoy high growth from expansion
• Risk-Tolerant Investors: Consider Copa Airlines to benefit from regional growth dividends (note that current prices have already risen significantly)

Regardless, risk management remains essential. Setting stop-loss orders, controlling position sizes reasonably, and avoiding chasing highs are key survival rules in airline stock investing.