Sifting through countless of stocks in the Passenger Airlines industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in American Airlines Group Inc. or Southwest Airlines Co. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how American Airlines Group Inc. and Southwest Airlines Co. compare based on key financial metrics to determine which better meets your investment needs.

About American Airlines Group Inc. and Southwest Airlines Co.

American Airlines Group Inc., through its subsidiaries, operates as a network air carrier in the United States, Latin America, Atlantic, and Pacific. The company provides scheduled air transportation services for passengers and cargo through its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, D.C., as well as through partner gateways in London, Doha, Madrid, Seattle/Tacoma, Sydney, and Tokyo. It also operates a mainline fleet of 1,013 aircraft. The company was formerly known as AMR Corporation and changed its name to American Airlines Group Inc. in December 2013. American Airlines Group Inc. was founded in 1926 and is headquartered in Fort Worth, Texas.

Southwest Airlines Co. operates as a passenger airline company that provides scheduled air transportation services in the United States and internationally. It also provides Rapid Rewards loyalty program; SWABIZ, an online booking tool; and inflight entertainment platform that includes movies-on-demand live and on-demand television, flight tracker, and additional curated content, as well as a variety of premium snacks and coffee. In addition, the company offers ancillary services, such as in-flight purchases, baggage fees, EarlyBird Check-In, and upgraded boarding, as well as transportation of pets and unaccompanied minors. As of December 31, 2025, the company operated a total fleet of 803 Boeing 737 aircraft; and served 117 destinations in 42 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as ten near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos. Southwest Airlines Co. was incorporated in 1967 and is headquartered in Dallas, Texas.

Latest Passenger Airlines and American Airlines Group Inc., Southwest Airlines Co. Stock News

As of September 4, 2026, American Airlines Group Inc. had a $8.7 billion market capitalization, compared to the Passenger Airlines median of $5.1 million. American Airlines Group Inc.’s stock is down 14.4% in 2026, down 3.7% in the previous five trading days and up 2.1% in the past year.

Currently, American Airlines Group Inc. does not have a price-earnings ratio. American Airlines Group Inc.’s trailing 12-month revenue is $58.3 billion with a -0.6% net profit margin. Year-over-year quarterly sales growth most recently was 16.3%. Analysts expect adjusted earnings to reach $-0.016 per share for the current fiscal year. American Airlines Group Inc. does not currently pay a dividend.

As of September 4, 2026, Southwest Airlines Co. had a $19.4 billion market cap, putting it in the 85th percentile of all stocks. Southwest Airlines Co.’s stock is down 4.1% in 2026, down 0.1% in the previous five trading days and up 27.31% in the past year.

Currently, Southwest Airlines Co.’s price-earnings ratio is 24.8. Southwest Airlines Co.’s trailing 12-month revenue is $30.1 billion with a 2.8% net profit margin. Year-over-year quarterly sales growth most recently was 16.4%. Analysts expect adjusted earnings to reach $3.346 per share for the current fiscal year. Southwest Airlines Co. currently has a 1.8% dividend yield.

How We Compare American Airlines Group Inc. and Southwest Airlines Co. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at American Airlines Group Inc. and Southwest Airlines Co.’s stock grades to see how they measure up against one another.

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American Airlines Group Inc. and Southwest Airlines Co. Stock Value Grades

Company	Ticker	Value
American Airlines Group Inc.	AAL	C
Southwest Airlines Co.	LUV	B

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

American Airlines Group Inc. has a Value Score of 58, which is Average. Southwest Airlines Co. has a Value Score of 73, which is Value.

The Value Stock Winner: Southwest Airlines Co.

As you can clearly see from the Value Grade breakdown above, Southwest Airlines Co. is considered to have better value than American Airlines Group Inc.. For investors who focus solely on a company’s valuation, Southwest Airlines Co. could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

American Airlines Group Inc. and Southwest Airlines Co.’s Momentum Grades

Company	Ticker	Momentum
American Airlines Group Inc.	AAL	D
Southwest Airlines Co.	LUV	C

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

American Airlines Group Inc. has a Momentum Score of 37, which is Weak. Southwest Airlines Co. has a Momentum Score of 55, which is Average.

The Momentum Stock Winner: No Clear Winner

Neither American Airlines Group Inc. or Southwest Airlines Co. has a strong enough Momentum Grade to be considered a “winner.” Investors considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if American Airlines Group Inc. or Southwest Airlines Co. is the better investment when it comes to momentum.

American Airlines Group Inc. and Southwest Airlines Co.’s Estimate Revisions Grades

Company	Ticker	Earnings Estimate
American Airlines Group Inc.	AAL	C
Southwest Airlines Co.	LUV	C

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

American Airlines Group Inc. has a Earnings Estimate Score of 48, which is Neutral. Southwest Airlines Co. has a Earnings Estimate Score of 55, which is Neutral.

The Earnings Estimate Revisions Stock Winner: No Clear Winner

Neither American Airlines Group Inc. or Southwest Airlines Co. has an Earnings Estimate Revisions Grade that could be considered a “winner.” Investors considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if American Airlines Group Inc. or Southwest Airlines Co. is the better investment when it comes to estimate revisions.

Other American Airlines Group Inc. and Southwest Airlines Co. Grades

In addition to Momentum, Estimate Revisions and Value, A+ Investor also provides grades for Growth and Quality.

Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether American Airlines Group Inc. and Southwest Airlines Co. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, American Airlines Group Inc. or Southwest Airlines Co. Stock?

Overall, American Airlines Group Inc. stock has a Value Score of 58, Momentum Score of 37 and Estimate Revisions Score of 48.

Southwest Airlines Co. stock has a Value Score of 73, Momentum Score of 55 and Estimate Revisions Score of 55.

Comparing American Airlines Group Inc. and Southwest Airlines Co.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.