LATAM soars 96% in 2025 while American Airlines and Alaska Air struggle
Airline stocks have shown mixed results in 2025, with some carriers soaring while others struggle. LATAM Airlines leads the sector with a near-doubling in value, while a few major US airlines face declines. The broader industrials sector has also performed well, ranking third in the S&P 500 this year.
LATAM Airlines Group has emerged as the standout performer, delivering a 96.16% year-to-date gain and earning a Strong Buy rating. Following closely are Joby Aviation and Ryanair, up 75.40% and 66.99% respectively, though both hold a Hold recommendation.
Among traditional carriers, Copa Holdings and Southwest Airlines have also seen strong growth, rising 38.77% and 23.62%. Southwest briefly led earlier in the year with a 23.38% gain, but its performance has since stabilised. Meanwhile, United Airlines and Delta Air Lines reported modest mid-teens gains, though Delta’s exact figure for 2025 remains unclear. Not all airlines have fared as well. American Airlines and Alaska Air Group are the only two in negative territory, dropping 10.50% and 20.96% respectively. SkyWest, though positive, has seen only a slight increase of 2.22%. The S&P 500 industrials sector, which includes airlines, has climbed 18.2% year-to-date, placing it third among all sectors.
The airline industry’s 2025 performance highlights sharp contrasts, with LATAM and Joby Aviation achieving the highest gains. American Airlines and Alaska Air remain the only carriers with losses for the year. The sector’s overall growth aligns with broader industrial trends, though individual results vary widely.
