2025 Aviation Stocks Investment Overview: US and Taiwan Stock Picks and Opportunity Analysis

The Post-Pandemic Recovery Wave — Why Focus on Airline Stocks in US and Global Markets Now

The International Air Transport Association (IATA) latest forecast shows that by 2025, global passenger numbers will officially surpass pre-pandemic levels. In the long term, demand for air travel is expected to double by 2040, increasing from 4 billion trips before the pandemic to approximately 8 billion, with an average annual growth rate of 3.4%.

This reflects a certain trend of global economic recovery and a rebound in travel demand. Along with Berkshire Hathaway, Warren Buffett’s investment firm, which has shifted its view on airline stocks and holds significant positions in companies like Delta Air Lines, American Airlines, and United Airlines — this shift itself is a market signal.

Two Major Camps of Airline Stocks: State-Owned vs. Private

Advantages of Stability in State-Owned Airline Stocks

State-owned airlines have shareholders and management appointed by the government. Their advantage lies in relatively stable internal structures, less prone to internal crises, making them the first choice for investors seeking stable profits. Taiwan’s Evergreen Airlines is an example of this type. In Hong Kong and China markets, airlines like China Eastern Airlines and China Southern Airlines also share similar characteristics, with their stock performance benefiting from the resilience of state-controlled enterprises.

Growth Potential of Private Airline Stocks

Private airlines are owned and operated by private investors or companies, not controlled by the government. Compared to state-owned counterparts, private airline stocks often have more flexible ownership structures but tend to have greater growth potential. Examples include Southwest Airlines and United Airlines in the US, as well as Spring Airlines, Juneyao Airlines, and Huaxia Airlines in China.

Core Factors Driving Airline Stock Fluctuations

Global Economic Health

The economic cycle directly impacts travel demand. During recessions, consumers tend to cut discretionary spending, including travel; conversely, during periods of economic growth, disposable income rises, and travel expenditure increases. The COVID-19 pandemic has fully demonstrated the significant impact of global economic shocks on air travel demand.

Oil Price Fluctuations and Operating Costs

Fuel costs constitute a large portion of airline expenses. Fluctuations in oil prices directly alter operating costs. When oil prices soar, airlines need to adjust ticket prices to offset increased expenses; when prices fall, the opposite occurs, providing cost relief and potentially leading to lower consumer ticket prices.

Financing Costs and Interest Rate Environment

Interest rate fluctuations influence borrowing costs for airlines. Rising rates make financing more expensive, impacting capital-intensive projects like fleet expansion or infrastructure development; lower rates make financing cheaper, potentially stimulating investment and growth in the airline industry.

Due to these complex factors, the airline industry finds it difficult to maintain stable profit margins. Increasing competition, demand volatility, labor shortages, union strikes, fuel price swings, and other factors continuously threaten profit stability. Airline decision-makers must constantly adjust strategies to control costs and increase revenue.

US Airline Stocks — Three Top Quality Picks

Data as of November 13, 2025

Delta Air Lines (DAL) — North America’s Leading Airline

Headquartered in Atlanta, Georgia, Delta Air Lines traces its history back to 1924 and has grown into a global airline giant covering six continents and over 1,000 destinations. It has a high proportion of business travelers and international routes, with competitive advantages in maintenance, leasing, and fuel cost control.

Since the start of the year, its stock price has risen about 69.51%, but in the short term (1-3 months), it has shown a pullback, with a decline of about 3.86% in the past month. As of November 13, the stock price is approximately $60.48. This indicates potential for growth during economic recovery, but recent volatility suggests suitability for investors willing to accept higher fluctuations. Morgan Stanley lists it as a preferred pick, optimistic about its high-end passenger ratio, actual growth, and advantages in fuel hedging through its own refinery.

Copa Airlines (CPA) — Latin America Market Leader

Copa is a leading airline in Latin America, operating through its subsidiaries Copa Airlines and AeroRepública. Benefiting from increased disposable income and urbanization in Latin America, the region’s air travel has significant growth prospects.

Centered in Panama City, Copa offers about 327 flights daily to 78 destinations across 32 countries. In Q2 2025, net profit reached $149 million, with EPS of $3.61, a 25% year-over-year increase. 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 performance is also excellent — on-time rate at 91.5%, flight completion rate at 99.8%, and unit operating costs down 4.6% YoY to 8.5 cents. The company has been named the best airline in Central America and the Caribbean by Skytrax for ten consecutive years.

Ryanair (RYAAY) — Europe’s Low-Cost Leader

Headquartered in Ireland, Ryanair is Europe’s largest airline group and a globally recognized low-cost carrier, operating brands like Ryanair and Buzz. Since its founding in 1985, its core competitive advantages are low fares and high operational efficiency.

With a fleet of over 640 aircraft, serving 36 countries and 224 airports, it operates about 3,600 flights daily, transporting 207 million passengers annually. The company has ordered 300 new Boeing 737 aircraft, planning to increase annual passenger volume to 300 million by 2034. As of November 13, the stock price is $64.61, with a total market cap of $34.317 billion. In winter 2025, it will add three base aircraft in Milan, invest $3.1 billion, open five new routes, and increase frequency on 40 popular routes, with an expected annual passenger count of 19 million, up 4% YoY.

Opportunities in Taiwanese Airline Stocks — Three Growth Stocks Analyzed

Data as of November 13, 2025

Evergreen Airlines (2618) — Taiwan’s Flagship Airline

Founded in 1989, Evergreen Airlines is one of Taiwan’s two major airlines, with Taoyuan International Airport as its hub and a member of the Star Alliance. As a Skytrax five-star airline, its fleet includes Boeing 787 Dreamliners and A350s, serving over 60 international destinations across Asia, Europe, North America, and Oceania. It also operates a dedicated cargo business, with plans in 2025 to convert three Boeing 777-300ER passenger aircraft into freighters.

As of November 13, the stock price is NT$37.2, with a total market value of about NT$186 billion. Analysts expect the full-year stock price to reach NT$37.84. Operationally, the third quarter saw a high seat occupancy rate of 92.5%, with international route capacity up 28% YoY, and bookings on long-haul Europe and North America routes and popular Southeast Asia routes continuing to surge. The company is expanding high-demand routes like Kaohsiung-Osaka, and the newly introduced Boeing 787s are already operating on routes like Brisbane, with plans to extend to Vancouver.

China Airlines (2610) — Full-Service Strategic Layout

Founded in 1959, China Airlines is Taiwan’s oldest airline, a member of the SkyTeam alliance, operating brands such as Mandarin Airlines and Tigerair Taiwan. Its fleet includes 83 aircraft (65 passenger and 18 cargo), with over 1,400 weekly flights.

As of November 13, the stock price is NT$28.6, with a market cap of about NT$162 billion. In Q3, the seat occupancy rate reached 86.9%, up 4.4 percentage points from 2019, with international route capacity up 13% YoY. Bookings on key routes to Northeast Asia and North America remain high. Investors are optimistic about the valuation recovery potential driven by long-haul route expansion.

Starlux Airlines (2646) — Differentiated Route with Young Fleet

Starlux Airlines is a new full-service airline in Taiwan, rapidly expanding its routes in Asia and North America since launching operations in 2020. Driven by rising tourism demand in Taiwan, improved international disposable income, and urbanization trends in Asia, the market growth potential remains high.

As of November 13, the stock price is NT$42.8, with a market cap exceeding NT$95 billion, an 18% increase from the start of the year, making it a standout growth stock in the airline sector. The third quarter’s seat occupancy rate was 85.9%, with international capacity up 10% YoY. The company ordered 10 Airbus A350-1000 flagship aircraft at the Paris Air Show, planning to deploy them on new routes, and in April added Taichung-Kobe route, further enhancing the Northeast Asia network.

Investment Channels and Tools for Airline Stocks

Traditional Brokerage Purchase

Open an account with a brokerage, then enter the stock code to buy airline stocks. For Taiwanese stocks, trade directly through domestic brokers; for US or Hong Kong stocks and other overseas airline stocks, you can open an account with an overseas broker or use domestic brokers’ cross-border entrustment. Domestic broker commissions for cross-border entrustment are higher; frequent trading is recommended to use overseas brokers.

CFD Platforms

Investing in airline stocks via CFDs offers unlimited long and short positions, no trading fees, and high leverage. A 1% increase in stock price can yield a 10% profit (leverage depends on position size). Compared to traditional brokers, CFD platforms are more flexible and especially suitable for short-term or ultra-short-term traders with risk management skills to improve capital efficiency.

Getting started is simple: fill out information and submit an application, deposit funds (starting from $50, supporting TWD deposits), and quickly place orders to seize opportunities.

The Dual Nature of Airline Stocks: Advantages and Risks

Investment Advantages

High Flexibility for Growth: Airline revenues heavily depend on passenger volume and flight frequency. When international tourism and business travel recover, profits usually improve significantly. From 2022 to 2024, many airlines experienced rapid profit rebounds, confirming this.

Market Position Protection: Despite fierce competition, routes, traffic rights, fleet, and pilot qualifications are difficult to rapidly increase. Large airlines often hold clear advantages in their core markets, such as the four major US carriers dominating domestic long-haul and international hub routes.

Diversified Revenue Structure: Modern airlines earn not only from ticket sales but also from baggage fees, seat upgrades, mileage programs, cargo, co-branded credit cards, and other non-ticket revenues, providing resilience during off-peak seasons and stabilizing profit structures more than expected.

Dividend Appeal: Well-funded airlines often pay dividends during stable periods, attracting cash-flow-focused investors.

Investment Risks

High Cost Structure Difficult to Adjust Quickly: The main costs in the airline industry are fuel, labor, and fleet maintenance. Rising oil prices or labor shortages can compress performance and cause stock prices to fall. The industry is a typical cyclical sector; during boom periods, demand rises and stocks go up; during downturns, reduced business travel causes declines, with volatility potentially challenging for novice investors.

High Debt and Cash Flow Pressure: Due to high costs of fleets, terminals, and equipment, airlines generally carry high debt levels. Reversals in the cycle or sharp interest rate hikes increase financial pressure. During the pandemic, many US airlines had to raise capital significantly due to excessive debt, diluting stock value.

Black Swan Event Risks: The airline industry is most vulnerable to external shocks, including pandemics, geopolitical crises, extreme weather, and airspace restrictions. These unpredictable events can lead to reduced flight volumes, fewer passengers, and often sharp declines in stock prices.

Investment Strategy Recommendations for 2025

Understanding the Importance of Economic Cycles

Airlines are cyclical stocks, following a pattern of prosperity and recession. Profits fluctuate with the economic cycle. To know when to buy, understanding the impact of the economic cycle on airline stocks is essential.

The best time to buy airline stocks is near the end of the cycle. Airlines earn most profits during boom periods, traditionally during economic expansion. However, during slowdowns, demand for flights declines, and they face competition from low-cost carriers, which can reduce industry profit margins.

Diversify Geographical Risks

Airline stocks are linked to the overall health of the global economy. Diversifying airline investments across different regions can effectively reduce risks associated with holding airline stocks.

Prioritize Companies with Strong Cash Reserves

Airlines are capital-intensive, requiring substantial cash to grow. Focusing on companies with sufficient cash reserves to survive long-term industry downturns is key to risk reduction.

Overall, in 2025, both US and Taiwanese airline stocks show clear growth signals. However, investors should participate only with a thorough understanding of the cycle, diversified risk management, and strict risk controls to achieve stable returns amid this recovery wave.