2025 Aviation Stock Investment Map: How to Choose Taiwan, US, and Hong Kong Stocks? This aviation stock recommendation list will help you get started quickly

Are Airline Stocks Worth Buying? First, Look at This Key Signal

2025 is the year of recovery for the airline industry. The International Air Transport Association (IATA) estimates that this year, global passenger numbers will surpass pre-pandemic levels for the first time. By 2040, demand is expected to double to 8 billion passengers, with an average annual growth rate of 3.4%. What does this mean? Airlines’ profit margins are expanding rapidly.

Even Warren Buffett has changed his tune. Once pessimistic about the airline industry, he now holds significant positions in companies like Delta Air Lines (DAL), American Airlines (AAL), and United Airlines (UAL). This in itself is a strong signal—the investment value of airline stocks is being reevaluated by institutions.

But this doesn’t mean all airline stocks are worth buying. Picking the wrong airline stock could lead to volatility or even losses.

What Do Airline Stocks Look Like? State-Owned vs. Private

To invest in airline stocks, you first need to distinguish between two corporate structures:

State-Owned Airlines are characterized by stability. They have appointed senior management and boards by the government, with fixed internal structures that are less prone to crises. Evergreen Airlines is one such example, making it a top choice for many conservative investors. In the Hong Kong market, China Eastern Airlines and China Southern Airlines are also in this camp.

Private Airlines tend to be more volatile. Ownership changes frequently, and shareholder meetings are often reshuffled. Examples include Southwest Airlines and United Airlines in the US, Spring Airlines and Juneyao Airlines in China, and StarLux Airlines in Taiwan. Private airlines are usually more flexible but also more susceptible to market shocks.

When choosing, ask yourself: How much volatility can you tolerate? Your answer will determine which type of airline stock you should buy.

What Truly Determines Airline Stock Prices?

To predict the trend of airline stocks, you need to understand three behind-the-scenes drivers:

The global economic situation is the primary factor. When the economy is strong, business travel and leisure increase, airline load factors rise, and stock prices go up. During downturns, discretionary travel spending is cut, and airline stocks come under pressure. The COVID-19 pandemic is the clearest example—economic shocks directly destroyed demand for air travel.

Oil price fluctuations are critically impactful on profits. Fuel costs constitute a large portion of airline expenses. When oil prices soar, operating costs spike, forcing airlines to raise ticket prices to maintain margins, often leading to decreased passenger volume. Conversely, falling oil prices reduce costs and expand profit margins, often resulting in stock price rallies.

Interest rate levels determine financing costs. Airlines require substantial capital to purchase aircraft and upgrade facilities. When interest rates are high, borrowing becomes expensive, limiting capital expenditure and putting pressure on operations. When rates are low, financing is cheaper, encouraging expansion and often boosting stock prices.

Because these factors are intertwined, the airline industry is often called “the industry with the highest difficulty in maintaining profits.” Airline decision-makers must constantly adjust strategies—controlling costs, expanding routes, managing labor shortages, dealing with union strikes, and responding to oil price swings—to stay competitive.

US Airline Stocks Recommendations: Three Major Players’ Strengths Analysis

Delta Air Lines (DAL): The Blue Chip Among Blue Chips

Fundamentals: Headquartered in Atlanta, founded in 1924, now a global giant covering six continents and over 1,000 destinations.

Core Advantages: High proportion of business travelers and international routes, which tend to have higher fares and profit contributions. Delta also leads in cost control areas like fuel hedging, fleet maintenance, and leasing. Morgan Stanley ranks it as the top US airline pick.

Stock Performance: Up approximately 69.51% this year but has recently pulled back. As of November 13, 2025, the stock is around $60.48, with a market cap of $39.49 billion and a P/E ratio of 8.5. It has declined 3.86% in the past month, indicating recent adjustment opportunities suitable for value investors.

Risk Warning: High volatility, suitable for investors who can tolerate short-term fluctuations.

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

Fundamentals: Leading airline in Latin America, owns Copa Airlines and AeroRepublica. Hub in Panama City, with an average of 330 flights daily, connecting North, Central, South America, and the Caribbean to 78 destinations in 32 countries.

Core Advantages: Rising disposable income and urbanization in Latin America drive demand, with promising market growth prospects. In Q2 2025, net profit was $149 million, up 25% YoY; on-time rate at 91.5%, flight completion rate at 99.8%, top industry efficiency; ranked Best Airline in Central America and the Caribbean by Skytrax for ten consecutive years.

Financials: End-of-period cash and investments total $1.4 billion, accounting for 39% of revenue over the past 12 months, indicating strong risk resilience. Operating costs per unit decreased YoY by 4.6% to 8.5 cents, continuing optimization.

Stock Performance: Market cap $5.23 billion, P/E ratio 8.2, up 4.28% in the past month, relatively stable.

Ryanair Holdings (RYAAY): Europe’s Low-Cost King

Fundamentals: Listed in Ireland, the world’s largest low-cost airline group, owns Ryanair and Buzz. Founded in 1985, now a dominant leader in European aviation.

Scale and Ambitions: Fleet of over 640 aircraft, covering 36 countries and 224 airports, operating about 3,600 flights daily, with 207 million passengers annually. Orders 300 new Boeing 737s, aiming to reach 300 million passengers annually by 2034—50% growth.

2025 Outlook: Stock price at €64.61 (as of Nov 13), market cap €34.317 billion. Active expansion this winter—adding 3 aircraft to Milan base, 5 new routes, and encrypting 40 popular routes. Expected annual passenger growth of 4% to 19 million.

Advantages: Low fares and high efficiency are core competitive advantages, with little competition in Europe. However, the low-cost model is sensitive to oil prices.

Taiwan Stock Airline Stock Recommendations: Local Guide

Evergreen Marine (2618): Five-Star Stable Stock

Company Strength: One of Taiwan’s two major airline giants, established in 1989, part of Star Alliance. Certified with Skytrax five-star rating. Fleet includes Boeing 787 Dreamliners and A350s, with routes across Asia, Europe, North America, Oceania—over 60 destinations.

Brand Features: Offers premium cabins like Royal Laurel Class (long-haul business class) and luxury economy, with the brand philosophy “Sharing the world, flying together.” Also a highlight in freight, with plans to introduce three Boeing 777 freighter conversions in 2025 to strengthen capacity.

Performance Highlights: Q3 passenger load factor at 92.5%, domestic 93.5%, international capacity up 28% YoY. Long-haul routes to Europe and North America, popular Southeast Asia routes see high booking volumes. The new Boeing 787s are already in service on routes like Brisbane and will extend to Vancouver.

Stock & Valuation: As of Nov 13, closing at NT$37.2, market cap NT$186 billion. Institutional target price NT$37.84, with a significant year-to-date increase. P/E ratio 6.56, relatively reasonable valuation.

Investment Traits: Stable growth, suitable for long-term hold investors.

China Airlines (2610): Rich History and Diversified Layout

Company Strength: Taiwan’s oldest airline, founded in 1959. Part of SkyTeam. Operates China Airlines and Tigerair Taiwan, forming a full-service and low-cost hybrid. Fleet of 83 aircraft (65 passenger, 18 cargo), over 1,400 weekly flights.

Business Diversification: Combines traditional passenger and cargo services, providing diversified income streams. This structure helps maintain revenue even in off-peak seasons.

Performance Data: Q3 passenger load factor at 86.9%, up 4.4 points YoY. International capacity up 13% YoY, with high booking levels on Northeast Asia and North America routes.

Stock & Valuation: As of Nov 13, closing at NT$28.6, market cap NT$162 billion. P/E ratio 7.63, lower than Evergreen, with potential for valuation recovery. Long-haul route expansion expected to drive growth.

Investment Traits: Value-oriented choice, growth potential from long-haul expansion.

Starlux Airlines (2646): Emerging High-Growth Stock

Company Features: New full-service airline in Taiwan, started operations in 2020, with a differentiated approach—new fleet, excellent service, high-end positioning, distinct from traditional regional airlines.

Market Opportunities: Recovery in Taiwanese tourism, improved international disposable income, urbanization and travel pattern shifts in Asia—Starlux is in a prime growth window.

Latest Developments: Q3 passenger load factor at 85.9%, domestic 86.3%, international capacity up 10% YoY. The Taipei-California Ontario route launched in June has 80% bookings. At the Paris Air Show, ordered 10 A350-1000 flagship aircraft, planning to deploy on new routes like Phoenix; in April, added Taichung-Kobe route, continuously improving Northeast Asia network.

Stock & Valuation: As of Nov 13, closing at NT$42.8, market cap NT$95 billion, up about 18% from the start of the year. P/E ratio 48.53, higher than peers, reflecting high market expectations for growth. Down 1.05% in the past month, potential for accumulation during correction.

Investment Traits: High growth with high valuation, suitable for aggressive investors optimistic about Asian aviation demand and able to tolerate volatility.

How to Invest in Airline Stocks?

Buying Stocks Directly: The Classic Approach

Open an account with a broker, enter the stock code, and place an order. Taiwan airline stocks can be bought directly through domestic brokers. For US and Hong Kong stocks, you need to open an overseas broker account or use a domestic broker’s cross-border agency (higher fees, less suitable for frequent trading).

CFD Contracts for Difference for Greater Flexibility

If you want unlimited long/short positions, no commission, and leverage to increase capital efficiency, consider CFD platforms. These platforms usually offer trading in US stocks, Hong Kong stocks, forex, indices, commodities, and cryptocurrencies.

Benefits include demo accounts for strategy testing before real trading. With proper risk management, this can significantly boost short-term trading returns.

Example: If an airline stock rises 1%, with 10x leverage, your profit is 10%—but losses are also magnified.

Must-Read Before Buying Airline Stocks: Full Pros and Cons

Why are airline stocks worth paying attention to?

High Flexibility and Growth Potential: When travel demand recovers, airline stocks outperform the market. The recovery from 2022-2024 is proof—many airlines have seen rapid profit rebounds, becoming “beneficiary stocks” during economic recovery.

Invisible Monopoly Traits: Routes, traffic rights, fleets, pilot qualifications are hard to quickly increase. Large airlines often hold dominant positions in their home markets. The Big Four US carriers nearly monopolize domestic long-haul and international hub routes, helping sustain long-term market position.

Diversified Revenue Streams: Modern airlines earn not only from ticket sales. Baggage fees, seat upgrades, mileage programs, cargo, co-branded credit cards—these “non-ticket” revenues are significant. This makes them more resilient in off-peak seasons and more stable in profit structure than many imagine.

Some stocks offer dividends: Well-funded airlines with stable markets often pay dividends when the economy is stable. US Southwest, some European and Asian airlines are examples, attractive to cash-flow-focused investors.

Why are airline stocks prone to pitfalls?

Rigid Cost Structure: Fuel, labor, and maintenance are the three major expenses. Any cost spike directly compresses profits. Rising oil prices, labor shortages, union strikes—these can quickly devastate airline stock prices.

Strong Cyclicality: During boom times, airline stocks surge; during downturns, they plummet. Beginners often chase high at peaks and sell low at troughs. The volatility far exceeds the broader market.

High Debt and Capital Expenditure: Aircraft, terminals, equipment are extremely costly. Airlines generally carry high debt ratios. When interest rates rise, financial pressure increases. During the pandemic, many US airlines had to raise large amounts of capital, diluting stock value and causing losses for investors.

Susceptible to Black Swan Events: Pandemics, geopolitical crises, severe weather, airspace restrictions—these unpredictable events can cause flight cancellations and passenger drops. One crisis can send airline stocks into deep freeze.

2025 Airline Stock Investment Strategies: Three Key Tips

Step 1: Grasp the Economic Cycle

Airline stocks follow a fixed boom-bust pattern. The best buying point is near the end of the cycle, when economic data begins to improve. At this point, airline profits start rebounding but stock prices have not fully reflected this, creating a golden window for accumulation. Conversely, during economic slowdown, be cautious—demand for flights drops, low-cost carriers intensify competition, and industry profit margins shrink.

Step 2: Diversify Geographically

Airline stocks are tied to the global economy. Distributing holdings across regions—such as US stocks (Delta), European stocks (Ryanair), and Taiwan stocks (EVA Air)—can greatly reduce risks from regional economic shocks.

Step 3: Choose Companies with Strong Cash Flow

The airline industry is capital-intensive, requiring continuous cash input. Before investing, check the target company’s cash reserves, free cash flow, and debt levels. Companies with ample cash that can withstand long-term downturns are the best bets.

In summary: 2025 looks bright for airline stocks, but stock selection must be cautious. Understand the company’s fundamentals, the economic cycle, and your own risk tolerance to profit from the turbulence in airline stocks.