LATAM and Ryanair lead 2025 aviation stock surge while American Airlines lags
Aviation stocks have shown mixed results in 2025, with some carriers soaring while others struggle. LATAM Airlines leads the sector with a near-doubling in share value, while American Airlines and Alaska Air remain in negative territory. Analysts have also highlighted strong performances from Ryanair and International Consolidated Airlines (IAG), though full rankings remain unclear due to incomplete data.
LATAM Airlines Group has emerged as the standout performer among passenger airlines, with a year-to-date (YTD) gain of 96.16%. The company holds a Strong Buy rating, reflecting investor confidence in its recovery and growth.
Ryanair follows closely, with a YTD increase of 66.99% and a Hold rating. The budget carrier also achieved over 55% stock growth in 2025, placing it among the top in the Bloomberg World Airlines Index—second only to Norwegian Air Shuttle. Analysts note that Ryanair’s current valuation remains below its five- and ten-year averages, suggesting potential for further gains.
Joby Aviation, an electric air taxi developer, has seen shares climb by 75.40% YTD, also carrying a Hold rating. Meanwhile, Copa Holdings and Southwest Airlines have delivered solid returns of 38.77% and 23.62% respectively.
International Consolidated Airlines (IAG), parent company of British Airways and Iberia, recorded a 29.75% YTD gain as of mid-December. Analysts at Bernstein, RBC, and JP Morgan have assigned it Outperform and Overweight ratings, signalling optimism about its prospects.
Delta Air Lines has posted mid-teens gains, while SkyWest has seen a modest rise of 2.22%. In contrast, American Airlines and Alaska Air Group are the only two major carriers in negative territory, with YTD declines of 10.50% and 20.96% respectively.
The broader S&P 500 industrials sector, which includes aviation, has grown by 18.2% YTD, ranking third among all sectors. However, a complete top 10 list of aviation stock performers for 2025 is not available, as some companies—like Delta Air Lines—have seen strong gains but lack precise rankings or full valuation details.
The aviation sector’s performance in 2025 highlights sharp contrasts between top gainers like LATAM and Ryanair and underperformers such as American Airlines. While some stocks continue to climb, others face challenges, reflecting uneven recovery across the industry. The S&P 500 industrials sector’s growth further underscores aviation’s role in broader market trends.
